The production possibilities curve represents O the maximum amount of labor and capital available to society. O the combinations of goods and services among which consumers are indifferent. O the maximum combination of goods and services that can be produced with fixed resources and technology, given efficient use of the resources. O the maximum rate of growth of capital and labor in a country.
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A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
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A: When the economy is operating under the production possibility curve then this implies that all the…
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A: Consumer goods are those goods that are produced for the consumption of average consumers. For…
Q: This question has multiple answers. Choose all that apply. As we move along the production…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
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A: A production possibility frontier depicts the combinations of two goods that can be produced with…
Q: QUESTION 3 Which of the following will not shift the production possibilities curve to the right? O…
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A: Opportunity cost: It means that while choosing one alternative, another alternative is lost.
Q: Below is the production possibilities table for consumer goods (maize) and capital goods…
A: Since you have asked multiple subparts, we would answering the first three for you. To get the…
Q: Production possibilities frontier is a combination of output that the economy can possibly produce…
A: Productive efficiency says that the economy can't produce more of one commodity without sacrificing…
Q: production possibilities table for two products, Consumption goods and Capital goods, is found…
A: Dear student, you have asked multiple sub-part questions in a single post and have not mentioned…
Q: Good B .d. b a Good A Refer to Exhibit 2.2, which shows the production possibilities frontier for…
A: The PPF is a set of points in macroeconomics where a country's economy is most efficiently…
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A: Correct : can be produced using currently available resources and technology.
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A: The statement that "In the In the production process both the average product and marginal product…
Q: A production possibilities curve is drawn basedon which of the following assumptions?a. Resources…
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A:
Q: 1 2 F B D Consumer Goods Refer to the above diagram. A shift in the production possibilities curve…
A: Production possibility curve is the locus of different combinations of two goods that an economy can…
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A: Answer: Scarcity occurs due to the unlimited wants of people and limited resources. When the limited…
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A: The production possibility frontier (PPF) is a curve that depicts the variations in the quantities…
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A: Opportunity cost When we produce more units of a good then we have to for go the quntity of other…
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A: PPC stands for Production Possibility Curve, which depicts the various performance combinations that…
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- give 1 of the following statements that is NOT true regarding the production function and the production possibilities curve?a. Both the production fuunction and the production possibilities curve maximise the amount of output attainable.b. The production function describes the capacity of a single firm, whereas the production possibilities summarises theoutput capacity of the entire economy.c. A production function tells us the maximum amount of output attainable from the use of all resources.d. The production possibilities curve expresses the ability to produce various combinations of goods given the use of allresourcesA production possibilities curve is drawn basedon which of the following assumptions?a. Resources are fixed and fully employed, andtechnology advances at the rate of growth ofthe economy overall.b. Resources such as nonrenewable resourceswill decline, but labor remains fullyemployed and technology is unchanged.c. Resources can vary; most resourcesexperience times of unemployment; andtechnology advances, particularly duringwartime.d. Resources such as labor and capital will growand are fully employed, and technology isunchanged.e. None of the answers correct.Define the term “Production Possibilities.” Explain what each point on the production possibilities curve depicts. The production possibilities curve illustrated two essential economic principles. Define these two principles and provide an example of each.
- Refer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): a. Show these data graphically. Upon what specific assumptions is this production possibilities curve based? b. If the economy is at point C, what is the cost of one more automobile? Of one more forklift? Which characteristic of the production possibilities curve reflects the law of increasing opportunity costs: its shape or its length? c. If the economy characterized by this production possibilities table and curve were producing 3 automobiles and 20 forklifts, what could you conclude about its use of its available resources? d. Is production at a point outside the production possibilities curve currently possible? Could a future advance in technology allow production beyond the current production possibilities curve? Could international trade allow a country to consume beyond its current production possibilities curve?Exhibit 2-10 production possibilities curve data A B C D E Capital Goods 0 1 2 3 4 Consumption goods 25 23 19 13 0 Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must: A) Increase because the production possibility table shows only the maximum efficiency points. B) Increase because of the law of increasing costs. C) Decrease because of the law of increasing costs. D) Decrease because of the finite nature of the resource base.No written by hand solution Refer to Table C. If the production possibilities frontier is bowed outward, then which of the following could be the maximum number of baseballs produced at quantity A in the table? 6,200. 5,900. 5,400. 4,200.
- Production possibility frontiers are thought to be concave from the origin (bowed out) because: A. of the different intensities with which commodities and services are used in producing capital, land, and labor. B. land, labor, and capital are used in fixed proportions in producing all commodities and services. C. of the different intensities of people's labor efforts. D. all productive resources are equally suited for producing all goods. E. productive resources differ in their suitability for producing different goods.What is the opportunity cost (amount & item) of the first 11,000 tons of coffee produced? ______________________ What is the opportunity cost (amount & item) of increasing production from 11,000 tons of coffee to 20,000 tons of coffee ? ________________ What is the opportunity cost (amount & item )of increasing production from 20,000 tons of coffee to 27,000 tons of coffee? _____________ What is the opportunity cost (amount & item) of increasing production from 27,000 tons of coffee to 30,000 tons of coffee ? ________________ What is happening to the opportunity cost as Costa Rica produces more coffee ?15. Which of the following statements is NOT true regarding the production function and the production possibilities curve? a. Both the production function and the production possibilities curve maximise the amount of output attainable. b. The production function describes the capacity of a single firm, whereas the production possibilities summarises the output capacity of the entire economy. c. A production function tells us the maximum amount of output attainable from the use of all resources. d. The production possibilities curve expresses the ability to produce various combinations of goods given the use of all resources.
- Economy A produces more capital goods and fewer consumers goods than economy B. Which economy will grow more rapidly? Draw two production possibilities curves, one for Economy A and one for Economy B. Demonstrate graphically how one can grow more rapidly than the other.Consider production possibilities of goods and services in China, Since 1980, the population of China has grown by over 40%, from just under 1.0 billion to more than 1.4 billion people. In addition, there has been massive investment in both human and physical capital. Given these changes, we can expect that China's production possibilities frontier has shifted and become curved (bowed outward). Answers A - D A.outward; more B.inward, more C.inward; less D.outward, lessA nation's residents can allocate their scarce resources either to producing consumption goods or to producing human capital-that is, providing themselves with training and education. The table below displays the production possibilities for this nation. a) Suppose that the nation's residents currently produce combination A. What is the opportunity cost of increasing production of consumption goods by 10 units? By 60 units?b) Does the law of increasing additional cost hold true for this nation? Why or why not?