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