Favorite Answer. the production decisions are made by government. Chapter 2, Problem 2CQQ. Resources however, are not always suitable to produce two different goods: Land is not identical. Answer: F 25. there is … B) inefficiency in production. D. A nonfeasible production combination . See solution. c. requires more resources than are presently available. B. 1 decade ago. B) that resources are imperfectly shiftable among alternative uses. A point inside the production possibilities frontier is. b. unfeasible point. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. Maximum production combinations. Want to see the full answer? d. maximum output combination. Any point inside the production possibilities curve indicates: that more output could be produced with available resources. E. None of the above. (D) that resources are imperfectly substitutable among alternative uses. In drawing the production possibilities curve we assume that: A) technology is fixed. Refer to the above diagram. c. inefficient point. C) the presence of inflationary pressures. 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'. Refer to the above diagram. Seraph. That applies both at the micro (company) and macro (economic) level. Minimum production combinations. Resources are being used very efficiently. D) that more output could be produced with available resources. 21.3) This is so because at U the economy will be under-employing its resources and H is beyond the resources available. 2 Answers. Economists describe it in a two-dimensional graph, where each axis represents the amount of output of each item. C. the realization of allocative efficiency. Production points inside the curve show an economy is not producing at its comparative advantage. 35) A production point that lies outside the Production Possibilities Curve (PPC) A) denotes inefficiency. Chapter 2, Problem 4CQQ. b. is wrong because this would be a point outside the production possibilities frontier. c. both efficient and feasible. Definition of production possibilities curve. d. maximum output combination. The PPF simply shows the trade-offs in production volume between two choices. A. A production possibilities curve will shift inward When the unemployment rate increases. B) indicates unemployment. Could indicate that resources are misallocated. 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. Answer: D 47. B) resources are being used very efficiently. b. illustrates resources being used to their fullest potential. A point inside a production possibilities curve indicates Resources are not being used efficiently. 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. 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. It represents something to be achieved in the future when more technology or labor are available. A point lying inside the production possibilities curve a. indicates that resources are not being fully or efficiently used. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. If resources are underemployed, then the economy is producing as much as possible. Any point outside the production possibilities curve illustrates:? 44. Production possibility curve shows the different combinations of the production of two commodities that can be achieved in an economy given the resources and technology which are to be fully utilized. (C) that more output could be produced with the available resources. Production possibility curve. You might … c. inefficient point. Diff: 1 Answer: T 26. A point inside a production possibilities curve represents things that can be produced. When production is inefficient. Any point inside the production possibilities curve is a(a n) a. efficient point. Check out a sample textbook solution. Answer Save. ← Prev Question Next Question → Related questions 0 votes. If an economy is operating at a point inside the production possibilities curve, it indicates that: society's resources are being poorly utilized. Any point outside the PPC showcases a stage of production which the … A point inside a production possibilities curve represents things that can be produced. Opportunity costs are constant. 1 answer. (iii) Non-availability of equipments, or (iv) Technology becomes obsolete. check_circle Expert Solution. Any point inside the production possibilities curve indicates: that more output could be produced with available resources. News. d. represents an increase in resources. Label the Axes . 34) All points inside the production possibilities curve indicate. Relevance. Any point inside a production possibilities curve indicates that the economy is using Diff: 2 all its available resources and technology. The answer is a.) Any point inside the production possibilities curve indicates: A) the realization of allocative efficiency. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. Here is a guide to graphing a PPF and how to analyze it. unlimited resources must satisfy scarce desires of people. D. that resources are imperfectly shiftable among alternative uses. a. efficient but not feasible. Any point inside the production possibilities curve indicates: A. that more output could be produced with available resources. Any point inside the production possibilities curve indicates that A the from ACCT 5996 at University of New South Wales How is the curve constructed? 35. b. unfeasible 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. c. is something outside the PPF. 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. The PPC shows the combination of goods and/or services that can be produced with the available shared resources. All choices along the curve shows production efficiency of both goods. showing a straight line production possibility curve indicates Constant Opportunity cost. arrow_back. 13 grudnia 2020 An economy is producing efficiently when all factors of production are used in their most 51) A point inside a production possibilities curve indicates A) resources are not being used efficiently. B. the presence of inflationary pressures. 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. 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. Any point inside the production possibilities curve indicates A the presence of from CUSHMANGT 032 at University of Texas C) the law of increasing relative cost. An output combination that is unobtainable with the current. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. A) a lack of sufficient supply. Any point inside the production possibilities curve indicates: (A) the presence of technological change. For example, the combined output of the two goods can neither be at U nor H. (See Fig. The production possibilities curve is also called the PPF or the production possibilities frontier. When resources are expanding. 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. a point inside the production possibilities frontier is. C) opportunity costs are constant. 01. of 09. The production possibility curve represents the maximum number of output combinations that we can produce by maximizing the use of existing resources. 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. (B) the presence of inflationary pressures. d. neither efficient nor feasible. 85. C. Economic growth. 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