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. What is the production possibilities curve? If a nation is operating at a point inside the production possibilities curve, it indicates that the nation could: A. Shifts in the production possibilities curve are caused by things that change the output of an economy, including advances in technology, changes in resources, more education or training (that's what we call human capital) and changes in the labor force. Any point inside the production possibilities curve is a(a n) a. efficient point. A point inside a production possibilities curve represents things that can be produced. Any point inside the production possibilities curve indicates A the presence of from CUSHMANGT 032 at University of Texas Any point inside the production possibilities curve indicates: A) the realization of allocative efficiency. b. is wrong because this would be a point outside the production possibilities frontier. B. that resources are imperfectly substitutable among alternative uses. B. the presence of inflationary pressures. b. nonfeasible point. It represents something to be achieved in the future when more technology or labor are available. by | Jan 2, 2021 | Uncategorized | 0 comments | Jan 2, 2021 | Uncategorized | 0 comments Countries would like to be at this point, but it could not because of limited recourses (scarcity). b. unfeasible point. A production possibilities curve … Since the choice is to be made between infinite possibilities, economists assume that there are only two goods being produced. 85. C. is illustrated by a point outside the production possibilities curve. 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. C. Not produce any more of one of the goods X … B. can exist at any point on a production possibilities curve. C. the realization of allocative efficiency. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. C) the presence of inflationary pressures. Two things could leave an economy operating at a point inside its production possibilities curve. (D) that resources are imperfectly substitutable among alternative uses. Production Possibility Curve (PPC) is the locus (the path of a moving point) of various combinations of two commodities which can be … The answer is a.) D. that more output could be produced with available resources. If a point lies inside the curve, this tells the company what? 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. An output combination that is unobtainable with the current. True or False? d. is a point either on the far left or far right on the curve. Increase its production of one good, but only at the expense of reducing the other good. 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. C. the presence of inflationary pressures. Production possibility curve illustrate the real choices and trade-offs that countries face. 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. Prof. Paul A. Samuelson used the concept of the production possibility curve to explain the economic problem of a society. b. illustrates resources being used to their fullest potential. The PPF simply shows the trade-offs in production volume between two choices. Any point inside the production possibilities curve indicates: (A) the presence of technological change. B) that resources are imperfectly shiftable among alternative uses. MC MB MC The optimal amount occurs where MB MC. All choices along the curve shows production efficiency of both goods. A point inside a production possibilities curve represents things that can be produced. A movement of a point to the INSIDE of the curve indicates the resources are NOT being used efficiently; they are being used inefficiently. Any economic activity should be expanded as long as marginal benefits (MB) exceed marginal costs (MC) and should be reduced if marginal costs are greater than marginal benefits. d. maximum output combination.C. A point below the Production Possibility curve denotes that the economy is not fully utilizing its productive capacity. 12. The PPF simply shows the trade-offs in production volume between two choices. answer choices answer choices ... What do points inside the PPF indicate? Answer to: A point inside the production possibility frontier indicates an economy that is underutilizing resources. Any point inside the production possibilities curve is a (an) a. efficient point. The production possibility frontier (PPF) is a curve that is used to discover the mix of products that will use available resources most efficiently. Resources are being used very efficiently. Production Possibility Curve (PPC) is the graphical representation of the possible combinations of two goods that can be produced with given resources and level of technology. d. maximum output combination. Any point inside the production possibilities curve is a(a n) a. efficient point. B. c. is something outside the PPF. Since resources are use specific, therefore every time when one more unit of a commodity is produced more units of the other commodity are sacrificed that results in increasing marginal opportunity cost which leads to the concave shape of the production possibility curve. For example, a country produces pizza and sugar. 9th - 12th grade. Any point inside the production possibilities curve indicates: A. the presence of technological change. D. that resources are imperfectly shiftable among alternative uses. d. represents an increase in resources. The production possibilities curve is also called the PPF or the production possibilities frontier. 51) A point inside a production possibilities curve indicates A) resources are not being used efficiently. Increase its production of both goods X and Y simultaneously. c. inefficient point. B) resources are being used very efficiently. Trade-offs, opportunity costs and production possibilities DRAFT. Any point inside the production possibilities curve indicates: that more output could be produced with available resources. When the economy is operating at any point above the Production Possibility curve, indicate a situation of growth of resources or improvement of technology. While operating within the boundaries of the production possibilities curve, more of both goods can … If the country decides to ramp up its sugar production, using the existing fixed resources, it has to lower its pizza production. 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 Refer to the diagram. 6. Other things equal, this... Country X has a high unemployment rate. A point inside the PPF is the only place where an entity can simultaneously produce more of each good or service. Could indicate that resources are misallocated. Now consider what would happen if Ms. Ryder decided to produce 1 more snowboard per month. A point inside a production possibilities curve indicates Resources are not being used efficiently. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. This will enable the economy to grow. A point inside also indicates a recession. c. inefficient point. Full Employment If an economy is operating on the production possibilities curve, and is thus operating at full production, it will use all resources fully. 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. production possibilities curve. Production points inside the curve show an economy is not producing at its comparative advantage. (C) that more output could be produced with the available resources. C) opportunity costs are constant. 35. c. requires more resources than are presently available. SECURITY: Indicates by point F that lies outside the curve. the attainable production points on a production possibilities curve are. D) that more output could be produced with … Any point inside the production possibilities curve indicates: A. that more output could be produced with available resources. (B) the presence of inflationary pressures. 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