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