Production possibilities, which analyzes the alternative combinations of two goods that an economy can produce with given resources and technology, indicates unemployment when production is inside the production possibilities curve.. Unemployment means resources that could be used for production are not being used. All choices along the curve shows production efficiency of both goods. But the direction that PPF is curved comes from the way that the trade-offs change. 35) A point inside a production possibilities frontier. Draw a production possibilities frontier showing increasing opportunity cost for hammers and horseshoes. c. both efficient and feasible. 0. 2. A point inside the production possibilities frontier is. An economy working below its most efficient production levels points inside the production possibilities frontier. Sort by: Top Voted. In fact B is better! The production possibilities curve is also called the PPF or the production possibilities frontier. But it cannot produce at points outside the frontier. Economics – production possibilities curves Essay ECO201 Module 1 Case and SLP – Production… ← a plan that will result in the creation of a contract for office cleaning by a company that will charge for their services → a political, legal, cultural, financial, and ethical risk analysis b) it is producing beyond its production possibilities. both efficient and… B. feasible, but not efficient. Lesson summary: the production possibilities frontier. Figure 31.10 "The Production Possibilities Frontier" shows the production possibilities frontier for an economy producing web pages and meals. Comparative advantage and the terms of trade . d.) Implies that too much labor and not enough capital is being used. Figure 31.2.10 "The Production Possibilities Frontier" shows the production possibilities frontier for an economy producing web pages and meals. The PPF simply shows the trade-offs in production volume between two choices. Do they appear to lie along a straight line? Practice. Log in. Choices a.) Because society has limited resources (e.g., labor, land, capital, raw materials) at any point in time, there is a limit to the quantities of goods and services it can produce. by callum_richardson_63896. An outcome is efficient if the economy is getting all it can from the scarce resources it has available. If every trade-off were the same, it would create a straight line. The following data show the production possibilities for a hypothetical economy during one year a. However, it does not have enough resources to produce outside the PPF. The production possibilities frontier (PPF) is curved because the cost of production is not constant. c. both efficient and feasible. It is downward sloping: to produce more web pages, the production of meals must decrease. Answered A point inside the production possibilities frontier is a. efficient, but not feasible. It forms a shape that looks like a cave or a rainbow. Edit. Inefficient Because There May Not Be Enough Technology To Produce More. This is the currently selected item. D) implies that too much labor and not enough capital is being used. Print; Share; Edit; Delete; Report an issue; Host a game. – Any point on the frontier such as E and any point inside the PPF such as Z are attainable. Point B represents an inefficient outcome. Points On (rather than inside) the production possibilities frontier represent efficient levels of production. A) could indicate that resources are misallocated. Practice: Interpreting graphs of the production possibilities curve (PPC) Practice: Calculating opportunity costs from a production possibilities curve (PPC) Next lesson. Point C is unattainable 1,000 4 5. Social Studies. b. on a graph, label a point that is efficent as point "E" and a point that inefficent as point "I". Production Possibilities Frontier (PPF) (C) DRAFT. 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. Save. Homework. chap 2 econ flashcards start studying chap 2 econ learn vocabulary terms and more with flashcards games and other study tools the unattainable points in a production possibilities best answer a the points outside the ppf the points inside the ppf on the ppf and along the axis are all attainable d. neither efficient nor feasible. b. feasible, but not efficient. 3 months ago. A point inside the production possibilities frontier is . c.) Reflects the fact that more technology needs to be developed to fully employ all resources. yet such technical performance is seldom attained. b. feasible, but not efficient. Finish Editing. 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