See solution. What does concavity implies in the context of Production Possibility Curve? Economists describe it in a two-dimensional graph, where each axis represents the amount of output of each item. Any point inside the production possibilities curve indicates: A) the realization of allocative efficiency. A) a lack of sufficient supply. C) the presence of inflationary pressures. The production possibilities curve is also called the PPF or the production possibilities frontier. A point inside a production possibilities curve represents things that can be produced. Production-Possibility Frontier delineates the maximum amount/quantities of outputs (goods/services) an economy can achieve, given fixed resources (factors of production) and fixed technological progress.Points that lie either on or below the production possibilities frontier/curve are possible/attainable: the quantities can be produced with currently available resources and technology. In drawing the production possibilities curve we assume that: A) technology is fixed. So if a firm is operating inside the production possibility curve, then it indicates that the firm is not utilizing the supplied resources and technology efficiently. If an economy is operating at a point inside the production possibilities curve, it indicates that: society's resources are being poorly utilized. All choices along the curve shows production efficiency of both goods. b. unfeasible point. b. illustrates resources being used to their fullest potential. b. is wrong because this would be a point outside the production possibilities frontier. 13 grudnia 2020 Answer: D 47. Any point inside the production possibilities curve indicates: that more output could be produced with available resources. check_circle Expert Solution. D) that more output could be produced with available resources. How is the curve constructed? For example, the combined output of the two goods can neither be at U nor H. (See Fig. d. represents an increase in resources. Production points inside the curve show an economy is not producing at its comparative advantage. arrow_back. 01. of 09. Chapter 2, Problem 2CQQ. Production possibility curve. 34) All points inside the production possibilities curve indicate. unlimited resources must satisfy scarce desires of people. Check out a sample textbook solution. Resources are being used very efficiently. Definition of production possibilities curve. b. feasible but not efficient. the production decisions are made by government. Any point inside the PPC indicates the underutilisation of resources due to : (i) Wear and tear or breakdown of machinery, (ii) Saturation of some natural resources. Refer to the above diagram. B. Opportunity costs are constant. An output combination that is unobtainable with the current. c. both efficient and feasible. Want to see the full answer? D. that resources are imperfectly shiftable among alternative uses. Any point inside a production possibilities curve indicates that the economy is using Diff: 2 all its available resources and technology. Could indicate that resources are misallocated. 1 decade ago. A production possibility curve (sometimes known as a production possibility frontier, boundary or line) is a curve which indicates the maximum combination of any two goods which an economy could produce if all its resources were (a) fully employed and (b) organised as efficiently as possible. Favorite Answer. A. c. requires more resources than are presently available. (D) that resources are imperfectly substitutable among alternative uses. An economy is producing efficiently when all factors of production are used in their most Any point outside the PPC showcases a stage of production which the … The PPF simply shows the trade-offs in production volume between two choices. d. is a point either on the far left or far right on the curve. 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. E. None of the above. (C) that more output could be produced with the available resources. More generally, the absolute value of the slope of any production possibilities curve at any point gives the opportunity cost of an additional unit of the good on the horizontal axis, measured in terms of the number of units of the good on the vertical axis that must be forgone. (iii) Non-availability of equipments, or (iv) Technology becomes obsolete. Minimum production combinations. Seraph. When production is inefficient. News. The answer is a.) Any point inside the production possibilities curve indicates A the presence of from CUSHMANGT 032 at University of Texas 44. When resources are expanding. (B) the presence of inflationary pressures. 35. Diff: 1 Answer: T 26. a point inside the production possibilities frontier is. D) the law of decreasing relative cost. d. maximum output combination. It is to be remembered that all the points representing the various reduction possibilities must lie on the production possibility curve AF and not inside or outside of it. A point lying inside the production possibilities curve a. indicates that resources are not being fully or efficiently used. This means that: 1) If a constant amount of good 'x' is given up, a constant amount good 'y' can be produced 2) The resources employed to produce good x is perfectly suited to produce good 'y'. arrow_forward. d. maximum output combination. a. efficient but not feasible. C. the realization of allocative efficiency. If resources are underemployed, then the economy is producing as much as possible. The PPC shows the combination of goods and/or services that can be produced with the available shared resources. Answer: F 25. B) indicates unemployment. Resources however, are not always suitable to produce two different goods: Land is not identical. Answer Save. C. Economic growth. Any point inside the production possibilities curve is a(a n) a. efficient point. That applies both at the micro (company) and macro (economic) level. 35) A production point that lies outside the Production Possibilities Curve (PPC) A) denotes inefficiency. Any point inside the production possibilities curve indicates: that more output could be produced with available resources. C) opportunity costs are constant. Label the Axes . Any point inside the production possibilities curve indicates: A. that more output could be produced with available resources. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. there is … Any time the PPC curve shifts outward it indicates economic growth, however reaching a point outside of an PPC can be reached by using trade. C) the law of increasing relative cost. 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. 85. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. A point inside a production possibilities curve indicates Resources are not being used efficiently. 21.3) This is so because at U the economy will be under-employing its resources and H is beyond the resources available. E. None of the above. Maximum production combinations. Any point inside the production possibilities curve is a (an) a. efficient point. While a point inside the production possibilities curve indicates that both more laptops and mobile phones can be produced, a point on the curve indicates that it is not possible to increase the production of one good without decreasing the production of the other good. Any point outside the production possibilities curve illustrates:? Chapter 2, Problem 4CQQ. A point inside the production possibilities frontier is. B) inefficiency in production. Relevance. d. neither efficient nor feasible. Here is a guide to graphing a PPF and how to analyze it. b. unfeasible point. c. inefficient point. c. is something outside the PPF. The production possibility curve represents the maximum number of output combinations that we can produce by maximizing the use of existing resources. Refer to the above diagram. ← Prev Question Next Question → Related questions 0 votes. You might … D. A nonfeasible production combination . A production possibilities curve will shift inward When the unemployment rate increases. c. inefficient point. B) resources are being used very efficiently. 51) A point inside a production possibilities curve indicates A) resources are not being used efficiently. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. 1 answer. It represents something to be achieved in the future when more technology or labor are available. 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