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