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'. An output combination that is unobtainable with the current. If an economy is operating at a point inside the production possibilities curve, it indicates that: society's resources are being poorly utilized. Favorite Answer. Resources however, are not always suitable to produce two different goods: Land is not identical. Any point inside the production possibilities curve indicates: A. that more output could be produced with available resources. Minimum production combinations. The production possibilities curve is also called the PPF or the production possibilities frontier. It represents something to be achieved in the future when more technology or labor are available. D. that resources are imperfectly shiftable among alternative uses. b. is wrong because this would be a point outside the production possibilities frontier. B. d. neither efficient nor feasible. 01. of 09. Opportunity costs are constant. c. inefficient point. 13 grudnia 2020 Could indicate that resources are misallocated. When resources are expanding. An economy is producing efficiently when all factors of production are used in their most A point lying inside the production possibilities curve a. indicates that resources are not being fully or efficiently used. arrow_forward. the production decisions are made by government. 34) All points inside the production possibilities curve indicate. Refer to the above diagram. there is … 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. B) inefficiency in production. 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. B) resources are being used very efficiently. Any point inside the production possibilities curve indicates: A) the realization of allocative efficiency. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. What does concavity implies in the context of Production Possibility Curve? 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. 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. 1 decade ago. Production possibility curve. Chapter 2, Problem 4CQQ. 2 Answers. 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 that A the from ACCT 5996 at University of New South Wales d. maximum output combination. A point inside a production possibilities curve represents things that can be produced. A production possibilities curve will shift inward When the unemployment rate increases. D) the law of decreasing relative cost. showing a straight line production possibility curve indicates Constant Opportunity cost. Check out a sample textbook solution. News. C) the law of increasing relative cost. d. is a point either on the far left or far right on the curve. 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. In drawing the production possibilities curve we assume that: A) technology is fixed. C) opportunity costs are constant. Any point inside the production possibilities curve indicates A the presence of from CUSHMANGT 032 at University of Texas a point inside the production possibilities frontier is. C. Economic growth. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. check_circle Expert Solution. You might … 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. B) that resources are imperfectly shiftable among alternative uses. (B) the presence of inflationary pressures. D) that more output could be produced with available resources. a. efficient but not feasible. b. unfeasible point. Answer: D 47. 35. Answer: F 25. A point inside a production possibilities curve indicates Resources are not being used efficiently. E. None of the above. Maximum production combinations. Any point inside the production possibilities curve indicates: that more output could be produced with available resources. C) the presence of inflationary pressures. Any point outside the PPC showcases a stage of production which the … Refer to the above diagram. 85. (iii) Non-availability of equipments, or (iv) Technology becomes obsolete. 21.3) This is so because at U the economy will be under-employing its resources and H is beyond the resources available. 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. The answer is a.) A. 51) A point inside a production possibilities curve indicates A) resources are not being used efficiently. 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