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