can exist at any point on a production possibilities curve. D) that more output could be produced with … B. Resources are being used very efficiently. answer choices The production possibility frontier (PPF) is a curve that is used to discover the mix of products that will use available resources most efficiently. Production Possibility Curve (PPC) is the locus (the path of a moving point) of various combinations of two commodities which can be … Therefore, any point inside the production possibility curve indicates under utilization of resources because the economy can produce more with the given resources and any point beyond the production possibility curve cannot be achieved because the economy does not have the required resources to produce such amount of ouput. (D) that resources are imperfectly substitutable among alternative uses. A point inside a production possibilities curve represents things that can be produced. True or False? Since the choice is to be made between infinite possibilities, economists assume that there are only two goods being produced. To see this relationship more clearly, examine Figure 2.3 “The Slope of a Production Possibilities Curve”.Suppose Plant 1 is producing 100 pairs of skis and 50 snowboards per month at point B. Any point outside the production possibilities curve illustrates: Answer minimum production combinations maximum production combinations economic growth a nonfeasible production combination none of the above A production possibilities curve … When the economy is operating at any point above the Production Possibility curve, indicate a situation of growth of resources or improvement of technology. Any point inside the production possibilities curve is a(a n) a. Increase its production of both goods X and Y simultaneously. The PPF simply shows the trade-offs in production volume between two choices. C) the presence of inflationary pressures. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. A movement of a point to the INSIDE of the curve indicates the resources are NOT being used efficiently they are being used inefficiently. that more output could be produced with available resources. A point inside also indicates a recession. Question: QUESTION 40 1 Points Sen Are Any Point Inside The Production Possibilities Curve Indicates: OA De Presence Of Technological Change OR That Resources Are Imperfectly Substitutable Among Aternative Uses That More Output Could Be Produced With The Available Resources Ode Presence Of Inflationary Presres. Any point that lies on the inside of the production possibilities curve signifies a point where the economy is not using its resources to their full potential. If a nation is operating at a point inside the production possibilities curve, it indicates that the nation could: A. SECURITY: Indicates by point F that lies outside the curve. Ryder decided to produce 1 more snowboard per month. B) resources are being used very efficiently. indicates that resources are not being fully or efficiently used. A point lying inside the production possibilities curve a. The production possibilities curve is also called the PPF or the production possibilities frontier. Any point inside the production possibilities curve indicates: A) the realization of allocative efficiency. Any point inside the production possibilities curve indicates: (A) the presence of technological change. Also, any point inside the PPF is inefficient because at that point the output is greater than the output that the existing resources can produce. is a point either on the far left or far right on the curve.
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