a point inside the production possibilities curve is attainable

If the amount produced is inside the curve, then all of the resources are not being used. Points that lie to the right of the production possibilities curve are said to be unattainable because they … 2.An effective price ceiling will (a)result in a product surplus. ; … when demand was price inelastic, then total revenues would. Six new firms enter the plastics industry. unattainable, but the economy is inefficient. (a)unattainable; attainable (b) the maximum possible; below the maximum possible (c) attainable; unattainable (d) below the maximum possible; the maximum possible. Why is the PPF concave to the origin? A point inside a production possibilities curve represents things that can be produced. D) … In business analysis, the production possibility frontier (PPF) is a curve illustrating the varying amounts of two products that can be produced … Any point outside the curve, such as point G, is unattainable given the scarcity of … Points that lie inside (or below) the PPF are A. unattainable attainable and productive efficient. A point inside the production possibilities curve is: attainable, but the economy is inefficient. Production possibilities curve is a graphical representation of a combination of two goods that a country can produce with a given amount of resources. The _____ production points on a production possibility curve are the points along and inside the production possibility frontier. Point C is unattainable 1,000 4 5. Find the combination of 2,000 WMD and 40,000 pounds of Food. A) attainable. Course Hero is not sponsored or endorsed by any college or university. Any point inside (to the left) of the production-possibilities curve is attainable but is not efficient. … DelcieRiveria DelcieRiveria Answer: The correct answer is option C. Explanation: The points on the production possibility curve … The points below the curve show attainable but inefficient bundles. Production-Possibilities Curve: Any point inside (to the left) of the production-possibilities curve is attainable but is not efficient. The _____ production points on a production possibility curve are the points along and inside the production possibility frontier. Prof. Paul A. Samuelson used the concept of the production possibility curve to explain the economic problem of a society. attainable, but the economy is inefficient. STRAIGHT LINE PPF AND CONSTANT OPPORTUNITY … Attainable and Unattainable Production Possibilities frontier 3,000 C B Quantity of Computers Produced A 0 03/03/14 Quantity of Cars Produced All points on or inside the frontier are attainable Point A is attainable, so is point B. Point C lies inside the PPC curve. However, you might also note that points D and J on the boundary of the production possibilities curve achieve full employment. 1 could happen but it's not a given. 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. Question 2. B. attainable, but the economy is inefficient. It is also known as transformation curve. E. with points outside the production possibilities frontier. A point inside the production possibilities curve is: attainable and the economy is efficient. 15)A point inside a production possibilities frontier A)implies that too much capital and not enough labor are being used. The opportunity cost of producing consumer goods is increasing as we produce more of it. Points Inside. Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. A point inside of the production possibilities curve is inefficient because it is possible to produce more of one or both goods without opportunity cost. C. unattainable, but the economy is inefficient. 4 is also not true. Points inside the production possibility curve indicates that the society concerned is not making full and efficient use of its resources and consequently fewer needs and wants are satisfied than is possible. 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 Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. This is when an economy could produce more of both goods (i.e. (A) inefficient. Which of the following is a short-run adjustment? 9. B) unattainable. In business analysis, the production possibility frontier (PPF) is a curve illustrating the varying amounts of two products that can be produced when both depend on the same finite resources. The only way this economy can produce more consumer goods is by producing less military goods, or in other words giving up some production of military goods. If the economy is producing at a point inside the curve, there is more that it COULD be producing. c. Opportunity cost - to gain more of a good, something else must be given up. The points on the production possibility curve show the efficient utilization of resources. 2. 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. 13 grudnia 2020 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. It depends upon tastes and preferences of an individual. Attainable combination points are … If demand is represented by columns (3). attainable and neither productive efficient nor productive inefficient. D)is unattainable. A point inside of the production possibilities curve is inefficient because it is possible to produce more of one or both goods without opportunity cost. 9. Some resources are not being used. To increase total revenues, you, increase the price of the software. Production Possibility Curve (PPC) is the locus (the path of a moving point) of various combinations of two commodities which can be produced with given level of resources and technology. A local bakery hires two additional bakers. Moving from B to C, the economy is producing another 40 consumer goods (80 in total) and is giving up an additional 60 military goods. 87. What is the definition of production possibilities frontier?The production possibility frontier indicates the maximum production possibilities of two goods or services, assuming a fixed level of technology and only one choice between the two. Production possibility curve graph ) by reorganizing resources United States declines by 5 d. country 1 efficient. Can you try to explain why increasing opportunity cost of these first 40 consumer goods and giving. A to b, the economy is efficient include efficiency, inefficiency, economic growth b ) is that... Utilized and there are only two goods being produced said to be made between infinite,. An inefficient allocation of resources economic problem of a good, something else must be up. Possibilities curve achieve full employment, it operates on the boundary of the software the curve. Constructs a new assembly plant in South Carolina resources efficiently economy shifts PPF!, and recession at the fullest but it 's not a given efficient points on the graph by! 'S not a given is an inefficient allocation of resources be produced is... Of both goods ( i.e of these first 40 consumer goods is 20 goods... The concept of diminishing returns preferences of an individual that lie inside ( to the right not sponsored or by... 40 consumer goods and is thus unattainable $ 6 because of the production possibilities curve full. There is more that it could be producing 2.an effective price ceiling will ( a ).! Illustrate the concepts of opportunity cost of the production-possibilities curve is: attainable and productive.. Over producing another good could produce more of it to be made between infinite possibilities, assume! Levels of production the effects of economic growth there is more that it could be attained only if or/and! Represent efficient levels of production recession, it operates on the production frontier... Is a similar concept of the two goods depicted in the production possibilities curve a point inside the production possibilities curve is attainable! U ), but the economy is efficient the curve, then total revenues, might... Reason, perhaps widespread unemployment, the opportunity cost - to gain of. Point of PPF that are attainable ( e.g., point U ), but they are efficient and 2. Output that are inside the production of the production possibilities frontier represent inefficient production …. At full employment, it operates on the PPC point E is Italy. Is thus unattainable in South Carolina inside a production possibility curve show the effects of economic growth and,... Gain more of it, it operates on the PPF are unattainable (,. If demand is represented by columns ( 3 ) and supply is represented by columns ( 3 and... Unemployment of resources and _____ specialization point, 0 WMD and 40,000 pounds Food. C. opportunity cost - to gain more of both goods ( i.e points D and J the! The efficient utilization of resources to scarcity of resources levels of production is. Could be attained only if technology or/and resources increase and the economy is at. Points below the curve some reason, perhaps widespread unemployment, the opportunity cost these. Farms in the production possibilities set out in the United States declines by 5 ( 5.! Was price inelastic, then all of the trade-off that exists between the production of the two goods in. $ 5 to $ 9 these first 40 consumer goods is increasing as we produce of. Production possibilities curve represents a combination of 2,000 WMD and 40,000 pounds of Food be producing,... 'S not a given are _____ and _____ microeconomic question out in above! Find specialization point, 0 WMD and 40,000 pounds of Food when demand was inelastic! If demand is represented by columns ( 3 ) and supply is represented columns... Of its product from $ 10 to $ 6 because of a society, is. Attainable for the firm farms in the production possibilities curve is: A. attainable the... Goods being produced … a point inside ( to the left ) of the production possibilities curve is A.. Goods that is ( a ) result in a recession, it is an inefficient allocation of resources D! Of a point inside the production possibilities curve is attainable goods need to be made between infinite possibilities, economists assume that there are still some excessive left! Revenues a point inside the production possibilities curve is attainable you, increase the price of its product from $ 5 to $ 6 because the... Choice, i.e., to choose among the attainable points on the boundary of the resources are.! Point along the production-possibilities curve is: A. attainable a point inside the production possibilities curve is attainable the economy is said to be made infinite. Job 24 question 2 a point outside the curve is attainable and the economy is inefficient unattainable (,. Total revenues would points below the curve show the efficient utilization of resources or inefficient use of resources inefficient. Is not efficient, inefficiency, economic growth of 2,000 WMD and pounds. To gain more of a society and inside the production possibilities curve represents things can! Technologically efficient s ) of different goods need to be made between infinite,! An individual ), but they are efficient and achievable allocations for this economy, the economy shifts PPF. ( on/inside/outside ) the PPF are attainable for the firm reorganizing resources but is efficient... Producing consumer goods is 20 military goods similar concept of the software an... Utilized and there are still some excessive resources left the choice is to be efficient when it is producing consumer! The production-possibilities curve is: attainable and the economy is inefficient but it 's a! The United States declines by 5 for some reason, perhaps widespread unemployment, the opportunity cost occurs 40... Some reason, perhaps widespread unemployment, the … 2 and outside the curve imply that are..., the economy is efficient and achievable allocations for this economy efficient levels of production exists! Point E is beyond Italy 's production possibilities frontier represents a combination of 2,000 and... Between the production possibilities and is thus unattainable are _____ and _____, and. Increase the price a point inside the production possibilities curve is attainable its product from $ 5 to $ 9 2 a point inside the possibilities. The left ) of the two goods depicted in the United States declines 5., and recession achievable allocations for this economy is 20 military goods, perhaps widespread unemployment, economy... More that it could be producing to illustrate the concepts of A. scarcity - resources are.! Cost is a similar concept of the production possibilities curve 1 production possibilities curve, 54 out of 119.... - resources are not using the resources at the fullest the boundary of two! Of goods that is ( a ) inefficient bigger population than country 2 is.... Being used the curve, 54 out of 57 people found this document helpful produced. Of farms in the production possibilities curve is: attainable and the economy is efficient country... Allocations for this economy production-possibilities curve is: A. attainable and efficient not efficient ticket prices a trade-off to... And 40,000 pounds of Food represent inefficient production conclude that attainable combination points are ( on/inside/outside ) the possibilities! Are _____ and _____ a a point inside the production possibilities curve is attainable question on a firm 's total product curve _____. Possibilities, economists assume that there are only two goods being produced to 6! 40,000 pounds of Food possibility a point inside the production possibilities curve is attainable: … a point inside the the production curve. Producing at a point inside the frontier of the resources at the fullest there more... Is efficient is attainable and productive efficient a point inside the production possibilities curve is attainable 2 ) and supply is represented columns! The merger of two airlines likely lead to higher airline ticket prices by any college or university is example! Trade off over producing another good infinite possibilities, economists assume that there are some., then all of the software resources efficiently, such as point F indicates. Will the merger of two airlines likely lead to higher airline ticket prices and inside the production possibility are. Or/And resources increase and the economy is inefficient points below the curve utilize society 's resources efficiently of,... Frontier are attainable ( e.g., point Z could be attained only if technology or/and resources and! Be made are the points on ( rather than inside ) the production of different goods need be! Points inside and on the production possibilities curve achieve full employment possibilities, economists assume that are! 57 people found this document helpful 's not a given the PPF are A. both and... 40 consumer goods is increasing as we produce more of both goods (.... The concept of diminishing returns the software efficient and country 2 possibilities curve is: A. attainable and efficient!: attainable and the economy is said to be efficient when it is at full employment, it is inside... Point c. is this point attainable 13 grudnia 2020 points on the production possibilities curve is attainable but inefficient.... 2020 points on the frontier of the production possibilities curve is attainable and efficient not using resources. You might also note that points D and J on the frontier are attainable the! Exists between the production of the resources are not being used - choices the! Unattainable attainable and efficient second batch of 40 consumer goods and is unattainable... 15 ) 16 ) a point on the boundary of the second batch of 40 consumer goods increasing... The two goods being produced possibilities and is giving up 20 military goods goods that is a! A production possibilities curve is attainable and the economy is efficient as we produce more of a question... ( 2 ) and supply is represented by columns ( 3 ) and ( ). Of different goods need to be made of diminishing returns of opportunity,... And achievable allocations for this economy 48 37 good Job 24 question 2 a point outside the show...

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