Is illustrated by a point outside the production possibilities curve?

Is illustrated by a point outside the production possibilities curve?

A point outside the production possibilities curve represents a combination of goods that is: unattainable. If an economy keeps increasing its capital stock/number of workers/technology/natural resources, then over time its production possibilities curve will: shift to the right.

What is the production possibilities curve C?

In economics, the production possibilities curve is a visualization that demonstrates the most efficient production of a pair of goods. Each point on the curve shows how much of each good will be produced when resources shift to making more of one good and less of another.

Which points on the production possibilities curve?

According to the PPF, points A, B, and C on the PPF curve represent the most efficient use of resources by the economy. For instance, producing five units of wine and five units of cotton (point B) is just as desirable as producing three units of wine and seven units of cotton.

What points are outside the production possibility frontier?

All points outside PPF are unattainable (e.g., point Z). Point Z could be attained only if technology or/and resources increase and the economy shifts its PPF to the right. Such movement is considered an economic growth .

Which of the following concepts can be illustrated using the production possibilities curve?

The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.

What do combinations of output that fall inside the production?

Combinations of output that fall inside the production possibilities curve of an economy represent: – goods that are attainable. – the inefficient use of resources. You just studied 28 terms! 1/28.

What Cannot be determined by using a production possibilities curve?

Production efficiency is only achieved at a point on the production possibility frontier. Which of the following cannot be determined by using a production possibility curve? C. Production possibility curve shows all possible combinations that can be produced, but does not indicate which one is the best.

What is not illustrated by a production possibilities frontier?

The correct answer is option A: Monetary Exchange. The production possibility frontier does not illustrate the concept of monetary exchange. Economists and business analysts use the PPF curve to indicate all possible production combinations of two products graphically.

How do you make a production possibility frontier?

The production possibilities frontier is constructed by plotting all of the possible combinations of output that an economy can produce. In this example, let’s say the economy can produce: 200 guns if it produces only guns, as represented by the point (0,200)

How can a production possibilities frontier be used to illustrate economic growth?

Terms in this set (9) A production possibility frontier is used to illustrate the concepts of opportunity cost, trade-offs and also show the effects of economic growth. Producing more of both goods would represent an improvement in welfare and a gain in what is called allocative efficiency.

Which of the following concepts Cannot be illustrated by the production possibilities frontier?

The correct answer is C) Equality The PPF represents a trade-off between two goods. So, accordingly, it cannot illustrate equality because, at a particular point on the PPF, it depicts how two goods are produced.