b. illustrates resources being used to their fullest potential. showing a straight line production possibility curve indicates Constant Opportunity cost. c. requires more resources than are presently available. Definition of production possibilities curve. The PPC shows the combination of goods and/or services that can be produced with the available shared resources. d. maximum output combination. 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. b. unfeasible point. Any point inside the production possibilities curve indicates A the presence of from CUSHMANGT 032 at University of Texas Economists describe it in a two-dimensional graph, where each axis represents the amount of output of each item. A point inside a production possibilities curve represents things that can be produced. Refer to the above diagram. See solution. d. maximum output combination. B) resources are being used very efficiently. C) the presence of inflationary pressures. B) indicates unemployment. Chapter 2, Problem 4CQQ. Relevance. 34) All points inside the production possibilities curve indicate. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. 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. 35) A production point that lies outside the Production Possibilities Curve (PPC) A) denotes inefficiency. A point inside a production possibilities curve represents things that can be produced. 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. 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. Seraph. You might … A) a lack of sufficient supply. c. inefficient point. What does concavity implies in the context of Production Possibility Curve? Any point inside a production possibilities curve indicates that the economy is using Diff: 2 all its available resources and technology. Answer Save. 1 answer. ← Prev Question Next Question → Related questions 0 votes. Minimum production combinations. Production possibility curve. Any point inside the production possibilities curve is a (an) a. efficient point. unlimited resources must satisfy scarce desires of people. Diff: 1 Answer: T 26. 51) A point inside a production possibilities curve indicates A) resources are not being used efficiently. An output combination that is unobtainable with the current. (C) that more output could be produced with the available resources. there is … B. 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. A point inside a production possibilities curve indicates Resources are not being used efficiently. How is the curve constructed? The production possibility curve represents the maximum number of output combinations that we can produce by maximizing the use of existing resources. Resources are being used very efficiently. b. is wrong because this would be a point outside the production possibilities frontier. In drawing the production possibilities curve we assume that: A) technology is fixed. All choices along the curve shows production efficiency of both goods. Refer to the above diagram. d. neither efficient nor feasible. C) opportunity costs are constant. 85. (D) that resources are imperfectly substitutable among alternative uses. 1 decade ago. The answer is a.) B. the presence of inflationary pressures. Any point inside the production possibilities curve indicates: (A) the presence of technological change. 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. 13 grudnia 2020 Any point inside the production possibilities curve indicates: A) the realization of allocative efficiency. (iii) Non-availability of equipments, or (iv) Technology becomes obsolete. Any point outside the production possibilities curve illustrates:? Want to see the full answer? When resources are expanding. d. is a point either on the far left or far right on the 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. b. feasible but not efficient. b. unfeasible point. C) the law of increasing relative cost. Any point inside the production possibilities curve indicates that A the from ACCT 5996 at University of New South Wales arrow_back. B) inefficiency in production. A production possibilities curve will shift inward When the unemployment rate increases. D. that resources are imperfectly shiftable among alternative uses. News. An economy is producing efficiently when all factors of production are used in their most 2 Answers. (B) the presence of inflationary pressures. If resources are underemployed, then the economy is producing as much as possible. Answer: D 47. 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. Favorite Answer. When production is inefficient. check_circle Expert Solution. 21.3) This is so because at U the economy will be under-employing its resources and H is beyond the resources available. arrow_forward. Chapter 2, Problem 2CQQ. d. represents an increase in resources. c. inefficient point. 01. of 09. Opportunity costs are constant. Check out a sample textbook solution. a point inside the production possibilities frontier is. the production decisions are made by government. 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. 35. It represents something to be achieved in the future when more technology or labor are available. 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 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 point inside the production possibilities frontier is. 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