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