Explain the concept of isoquant and work on its function. Points within the curve show when a country’s resources are not being fully utilised The economic concept, guns or butter, means that: A. a person can spend money on either sports equipment or food. Explain how, if at all, each of the following affects the location of a country's production possibilities curve: a. All choices along the curve shows production efficiency of both goods. For a firm, the production function represents the relationship between: a) implicit costs and explicit costs. How does the theory of comparative advantage relate to production possibility curves? A drought that limits onion production would shift the PPF in which direction, and do what to the opportunity cost of producing onions? The shift from __X__ to __Y__ only, c. Both the shift from __AB__ to __CD__ and the shif... A point inside the production possibilities curve is , while a point outside the curve is a) unattainable; attainable b) the maximum possible; below the maximum possible c) attainable; unattainab... Hosne's opportunity cost of one purse is a. a. It is significant because it represents all possible output combinations the economy can choose from when it is operating at... A nation with fixed quantities of resources is able to produce any of the following combinations of bread and ovens: a. d. inefficient points. e. bett... A production possibilities frontier will shift outward if there is an improvement in technology. 1. Any movement along the product possibilities frontier involves the production of: a. more of both goods. Which one of the following is n o t a material commonly used to coat carbide cutting tool inserts? The following table shows the daily output resulting from various possible combi... A negative marginal product of labor necessarily implies a downward sloping production frontier at that level of labor input. The combinations of output that an economy should produce. B. shift out. The Balance uses cookies to provide you with a great user experience. The PPF simply shows the trade-offs in production volume between two choices. e) Unemployed resources. C. of the law of increasing costs. These combinations can also be shown graphically, the result being a production possibility frontier. An increase in government spending. 1. The assumption is that production of one commodity decreases if that of the other one increases, given the finite resources or inputs available for use. 6 bowls and 14 cups b. Describe the different ways a process technician can check for leaks in piping, tubing, or hosing. I'm having trouble finding an article I can use for a PPC graph, ... Finding an article on a real life example is the smallest portion of this assignment. Which is not one of the assumptions underlying the Production Possibilities Curve: a. If opportunity costs are constant, the production possibilities frontier is graphed as a _____. Both Brazil and the United States produce each product. The following table shows scores that a student can earn on two upcoming exam according tot the amount of time devoted to study. Provide an example. C. An increase in the money supply. Using the table above, it can be seen that the production of 40 units of good X and 80 units of good Y is A. not feasible given current resources and technology. Impossible even with technological progress, c. Possible but inefficient, d. Possible and efficient. A society that is producing its maximum combination of goods and using all available resources for production a. is operating outside its PPF. A production possibility frontier (PPF) is a curve or a boundary which shows the combinations of two or more goods and services that can be produced whilst using all of the available factor resources efficiently. Get help with your Production–possibility frontier homework. What are the assumptions necessary to represent the production possibilities in a simple economic system? In figure 1.1, what is true about the production mix at point C and at point D? c. shifts upward. In a simple world where resources are abundant, a production possibilities frontier between two goods may be a straight line. A. Refer to the graphs. The production possibilities curve for an economy that experiences a constant opportunity cost of production is linear. Suppose this hypothetical economy is currently operating at point A on PF 1. A. a technological advance B. training of the workforce C. an increase in the country's capital stock. She has 8 hours a day to produce toys. a. an outward shift of the PPF b. an inward shift of the PPF c. upward movement along the PPF d. downward movement along the PPF e. straightening of... State the four specific assumptions upon which the production possibilities curve is based. The opportunity cost is constant, c. The opportunity cost is increasing, d. The opportunity cost i... An outward shift of the production possibilities curve represents A. economic growth. b. That according to the productive possibility graph with a shift outward/right, butter and guns would increase. Illustrate and briefly explain the... International trade permits a country to: A) produce and consume beyond its production possibilities boundary. C. 2 skating rinks She writes about the U.S. Economy for The Balance. In a Production Possibilities Curve depicting the trade-off between with capital goods vs. consumer goods, an economy choosing more capital goods and less consumption goods will, ceteris paribus: a... One way to examine the marginal cost of a good is by looking at the opportunity cost using the production possibilities curve (PPC) model. Select any relevant microeconomics industry and discuss how it relates to the PPF. B. When an economy is in a recession, it is operating inside the PPC. She can design three websites in one hour or teach two students. a. b. economic growth is always occurring. The combinations of output that an economy should consume. Explain the differences between absolute advantage and comparative advantage. a. an impossible situation b. a situation in which a country produces more of one good and less of another c. the... State true or false and justify your answer: An economy cannot produce at a point outside of its production possibilities curve because of a lack of appropriate technology. B... An economy produces hot dogs and hamburgers. What is the Production Possibilities Curve? A production possibility curve measures the maximum output of two goods using a fixed amount of input. d) c and e. e) The... Autos and chemicals are in units of one million: __Germany production possibilities__ | Product|A|B|C|D|E|F |Autos|0|4|8|12|16|20 |Chemicals|40|32|24|16|8|0 __U.S. Which of the following makes the PPF shifts of a country to the left? The steeper the curve, the greater the opportunity cost to … a. a. concept of absolute advantage b. law of positive statements c. l... A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called a. a production possibilities frontier (PPF). Specialization and trade allow individuals to a. consume outside their own production possibilities frontier (PPF). b. the budget constraint model... How could you use a production possibilities frontier to show the effect of a natural disaster that hit a small country? Point A on the PPF represents the... A report comes out from the United States Federal Reserve bank that indicates the current unemployment rate is around 2.3%. Why does MRT (marginal rate transformation) increase? a) maximum attainable b) only c) equ... How does the PPF highlight the concepts of scarcity, choice, and opportunity cost? If it wants to produce more oranges, it must produce fewer apples. The following table illustrates the points a student can earn on examinations in economics and biology if the student uses all available hours for study. There are two goods, A and B. In the graph above, this is represented by a move from point A to point B. Mythica, which is a hypothetical economy, produces only two goods – textbooks and computers. This problem set asks you to use diagrammatic techniques to evaluate the effects of various changes on the equilibrium in a specific factor (Ricardo-Viner) model. It follows that country X is operating: a. beyond its production possibilities frontier (PPF) b. on its PPF c. inside (below) its PPF d. at a productive effi... Production is inefficient: a. Suppose the pizza shop upgrades to a lar... A point inside the production possibility frontier indicates an economy that is underutilizing resources. Go ahead and submit it to our experts to be answered. a. Production Possibility Curve which is also known as Production Possibility Frontier or Production Possibility Boundary is a curve that shows various combinations of the two goods that can be produced with the given resources and technology. A production possibility frontier is used to illustrate the concepts of opportunity cost, trade-offs and also show the effects of economic growth. d) Productive efficiency, Give an example of conditions when the production possibilities frontier might not be concave. Which of the following description is correct? Shifting resources from consumer (butter) to capita (gun) production. A. production possibilities curve. The illustrates the various combinations of output that a society can produce if all of its resources are being used efficiently. In the given figure, a shift from A to B seems most consistent with which of the following scenarios? The production possibility curve can be extended or expanded by the following the ways: 1. What will be the impact of the Clean India Mission on the Production Possibility Curve of the country? The leader of a federal political party made the following campaign promise: "My administration will increase national defense without requiring sacrifices elsewhere in the economy." What are the conditions under which the production possibilities frontier is linear rather than bowed out? Which of the following would shift the production possibilities curve outward? B. decrease in short-run aggregate supply. Explain or demonstrate why each nation can gain from trade. Complete the following table and identify the decreasing returns. What is the role of comparative advantage in a production possibility curve? a. the computer is invented b.1 million farm workers rem... Why with international trade, the domestic economy's consumption possibilities curve can be greater than the domestic economy's production possibilities curve? b. the goods are produced using only some of society's available resources. When does the PPF shift parallelly? The production possibilities curve may shift outward as a result of a(n) A. increase in consumer spending. If the economy is getting all that it can from its resources, what is/are high? Will a production possibility curve expand outward more if the country prefers more consumer goods than capital goods, after 10 years? Suppose an assembly line has a bottleneck at a workstation with a processing time of 5 minutes. A. Which statement about the Production Possibility Frontier in the Ricardian Model is not true? Using the table below, the production of 25 units of good X and 60 units of good Y is: a. a. the PPF b. attainable combinations c. production efficiency d. tradeoffs. Brazil can produce 100,000 units of clothing per year and 50,000 cans of soda. There are two goods, A and B. Sample: 3B Score: 3 . He consumes two commodities, Coke and chips. Assuming the economy is initially operating on the curve, indicate how the production of public goods might be increased. The United States economy _____ operates on its production possibility curve. Select one: A. b) quantity of inputs and total costs. b. shift upward. Explain how a PPC/F can be used to illustrate scarcity, choice, opportunity cost and productive efficiency. a. d) none of the above. As displayed on a production possibilities curve, what will an increase in technology allow a society to do? That it is efficient b. Suppose you find a production possibilities frontier (PPF) that is shaped like a straight line. Suppose that there are only two types of output in a country: nuclear missiles and consumer goods. What happens to this frontier if disease kills half of the economy's cows? If people who were laid off return back to work. 400 tacos and 0 burritos, b. ii) has no effect on the supply of the good. All rights reserved. Periods of full employment correspond to: a. points outside the ppf. If there is a shortage of one input, then more goods will not be produced, no matter how high the demand. b. the difference between microanalysis and macro analysis. True False Explain. How much idle time would be experienced per cycle at the bottleneck? A. Assume that you have a total of five hours available to study for two mid-term exams: Economics and Chemistry. Mountain Mack and Big Lake Bob spend their time carving fishing lures and duck decoys. The reason that most PPFs are bowed outward (concave) rather than a straight line is that most resources used in production is what? c. shifting inward. Explain why the following statement is True, False, or Uncertain? The Shape Of The Production Possibility Curve Depends On The Relationship The Two Uses Share. A. A. outward; decrease B. inward; increase C. inward; decrease... With a production possibility curve, explain what points are possible, desirable, and impossible. a. If the MCX = 6 and the MCY = 3, then RPTXY is a) 0.5 b) 2 c) 3 d) 9 e) 18. a. Suppose you are studying a production possibilities frontier (PPF) that has a bowed-out shape relative to the origin. Other things equal, this economy will shift its production possibilities curve outward the most if: a) it chooses point C, b) the ratio of capital to consumer goods is minimiz... Country X has a high unemployment rate. Maryam allocates her time between deciding websites and teaching web designing. c. become a straight line. What is a recent or relevant microeconomics industry and how does it relate to PPF? False. __Westland production possibilities __ |Tea (pounds per month)|Hiking booths (pairs per month) |100|0 |50|250 |20|400 |0|500 If Westland produces 50 pounds of tea per month, it must produce [{Blank... On the production possibilities curve (PPC), there are points that are not attainable (N), efficient, and inefficient (I). C. attainable but not technologically efficient. Both represent the same mix of tank and automobiles B. b. shifts to the left. b. Why does a production frontier, that is concave from the origin, indicate increasing opportunity costs in both commodities? Point A Points A and C Point B Point C. Which scenario represents economic contraction? Make sure that the graph includes all relevant numbers. Choco Fantasy is a firm that produces both dark chocolates as well as liquor chocolates. b. aggregate demand curve; outward. Explain the effect of sustained overtime on the labor cost per unit of construction production. True False. According to the neoclassical growth model, a technological change [{Blank}] and a change in the capital stock [{Blank}]. a) economies of scope b) economies of scale c) diseconomies of scope d) diseconomies of scale. There are 20 workers in the United States and each can produce either 5 computers or 40 tons of rice. Please answer to the following four questions in order: 1. (x) A choice to produce 1,400 chairs and 50 tables would reflect an efficient amount of production. Get help with your Production–possibility frontier homework. The input is any combination of the four factors of production: natural resources (including land), labor, capital goods, and entrepreneurship. Which of the following would be most likely to shift the Production Possibilities Curve to the right? Toby Walters is a financial writer, investor, and lifelong learner. b) Tradeoffs, b. Inefficient production is represented by which point(s)? If a classmate stopped by Dunkin Donuts on the way to class and picked up a mole of donuts to share equally among the 11 0f us, and we started eating them. It is a model of a macro economy used to analyze the production decisions in the economy and the problem of scarcity. Suppose you find a production possibilities frontier (PPF) that is shaped like a straight line. B. producing additional units of one good results in increasing amounts of l... Why is the PPF bowed outward? True b. For example, say an economy can produce 20,000 oranges and 120,000 apples. The sky is blue. Production Possibility Frontier. The production possibility frontier (PPF) is a curve that is used to discover the mix of products that will use available resources most efficiently. Why is the marginal rate of transformation of one good for another is equal to the ratio of marginal cost of producing the two goods? If a country is producing efficiently, it will produce __ its production possibilities curve. It can produce 10,000 bars of dark chocolate per month if all its resources are used to produce only this va... What are the implications of this idea for the shape of the production possibilities frontier? Show how a production possibility curve would shift if a society became more productive in its outputs of widgets but less productive in its outputs of wadgets. A. C. economic contraction. What is meant by the consumption possibilities of a country? True or false: The production possibilities curve for an economy that experiences a constant opportunity cost of production is linear. What is the marginal of opportunity cost along PPC? There must also be enough unemployed to make a difference. Making more of one good will cost society the opportunity of making more of the other good. The quality of education increases, b. Explain the effect of each of these on the shape and position of the country's production-possibility curve: a. Only after that occurs can more resources can be used to produce greater output. Give a personal example of a production possibilities curve. Explain movement on production possibilities frontier, shifts in the curve of a PPF, costs along the curve of a PPF, and meaning of points on the graph of a PPF. a. population growth b. increased investment today c. an increase in technology d. the... An increase in the labor force would be reflected in a society's production possibilities frontier (PPF) by an a. increase in opportunity cost. How might the output of public goods be increased if the economy is initially operating at a point inside the curve? The highest point on the curve is when you only produce one good, on the y-axis, and zero of the other, on the x-axis. B. D. economic recession. The figure to the right illustrates the trade offs facing Ford Motor Company.The line in the graph is Ford's production possibilities frontier. How can the central problems of an economy be solved with the specific reference to production possibility curve and under economic system? A linear production possibility curve illustrates the concept of increasing opportunity costs. Production Possibilities Curve – a graph that shows alternative ways to use an economy’s resources – does not show consumer satisfaction. The production possibilities curve would shift outward as a result of a(n): a) decrease in labor productivity. Suppose, in a region, each household produces either 1 pair of shoes or 1 gallon of milk per hour. False. True False. A b. e. rotating downward. a. resources b. technology c. institutions d. price level. B. an improvement in technology. What is different between Shape and Shift in PPC?