Table of Contents
What points are unattainable on a production possibility frontier?
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 production possibilities frontier example?
What is attainable and unattainable combinations?
An attainable combination is the set or combination of two goods which is feasible by the economy to manufacture with the available resource allocation and technology. Unattainable combination is the combination of two goods which is not possible to be produced with allocated resource and available technology.
Is inefficient and unattainable the same thing?
Key takeaways. A production possibilities frontier or PPF defines the set of possible combinations of goods and services a society can produce given the resources available. Choices outside the PPF are unattainable (at least in any sustainable way) and choices inside the PPF are inefficient.
Which of the following is not a central problem of economy to produce when to produce what to produce for whom to produce?
How to maximize private profit is not a central problem of an economy. Some of the central problems that are faced by every economy of a country are as follows: Production distribution and disposition of goods and services are the basic economic activities of life.
Which of the following is not a factor of production?
Land labor and capital as factors of production were originally identified by the early political economists such as Adam Smith David Ricardo and Karl Marx. From the given option Revenue generated after production is not a factor of production.
Why Societies Cannot make a choice above their production possibilities frontier and should not make a choice below it?
Why Societies Cannot make a choice above their production possibilities frontier and should not make a choice below? A society should not make a choice below it as this is productively inefficient and wasteful because it is possible to produce more of one good the other good or some combination of both goods.
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.
What will not allow the economy to produce at points beyond the PPF?
Conversely any point outside the PPF curve is impossible because it represents a mix of commodities that will require more resources to produce than are currently obtainable.
What are the central problems of an economy?
Ans. – The three basic economic problems are regarding the allocation of the resources. These are what to produce how to produce and for whom to produce.
Can a country produce beyond its PPC?
An individual or a country cannot produce beyond its production possibilities frontier. The production possibilities frontier shows the most that an individual or country can produce for a given amount of resources and technology.
What is non-attainable combination?
Unattainable combination is the combination of two goods which is not possible to be produced with allocated resource and available technology.
What are attainable resources?
In Economical terms an attainable combination is the set or combination of two goods which is feasible by the economy to manufacture with the available resource allocation and technology. … Points on the right on outside the curve represents the unattainable combination of goods.
Can non-attainable combinations ever be attained?
An attainable combination of a set of two goods is as follows: … NON-attainable: This is the production of one good vs another which cannot be done. Because your productive capacity is limited due to the limited resources.
When we Cannot produce more of any good without giving up?
When we cannot produce more of any one good without giving up some other good we have achieved production efficiency. We are producing at a point on the PPF. When we cannot produce more of any one good without giving up some other good that we value more highly we have achieved allocative efficiency.
When a country’s economy grows what happens to a PPF?
When the economy grows what happens to the PPF curve? PPF curve moves rightward. You just studied 36 terms!
Why is the PPF bowed out?
The short answer is: increasing opportunity cost. The PPF is bowed outward because resources are not all equally productive in all activities.
What is economic problem of an economy?
An economic problem generally means the problem of making choices that occurs because of the scarcity of resources. It arises because people have unlimited desires but the means to satisfy that desire is limited. Therefore satisfying all human needs is difficult with limited means.
Which of the following is not an economic activity?
A student playing cricket is not an economic activity. Economic activity is the activity of making providing purchasing or selling goods or services. Any action that involves producing distributing or consuming products or services is an economic activity.
What is the problem for whom to produce?
Which of the following is not a factor of efficiency?
digestion is not a factor in efficiency.
Which is not capital?
Nauru an island in the Pacific Ocean is the second-smallest republic in the world—but it doesn’t even have a capital city. Jeopardy champ Ken Jennings explains why.
Which of the factors below is not a factor of production?
Goods and services are not factors of production. Factors of production are inputs that are needed to provide goods or services. They include land labor capital and entrepreneurship.
Why can a society not produce at a point above their production possibilities frontier?
A choice above the PPF is not possible because the PPF already illustrates the maximum amount of production. Producing at a point inside the PPF is inefficient because more production could be achieved at no additional cost.
Why society Cannot make a choice above their production possibilities frontier?
A society cannot make a choice above their PPF as the PPF represents the most efficient way to allocate the two goods (but in varying proportions along the curve).
When can an economy increase the production of one good without reducing the output of another?
When can an economy increase the production of one good without reducing the output of another? If there are no unemployed resources and the economy is operating within and/or outside the production possibilities frontier.
Which of the following is not illustrated by a production possibilities boundary?
The production possibility frontier does not illustrate the concept of monetary exchange.
Which of the following trade offs does the production possibilities frontier illustrate?
| Question | Answer |
|---|---|
| Which of the following trade-offs does the production possibilities frontier illustrate? | Once an economy has reached the efficiency in production then it must sacrifice equality in consumption |
Is an economy is producing efficiently then?
If an economy is producing efficiently then it is impossible for that economy to produce more of one good without producing less of the other.
What economic resources means limited goods and services?
The resources that we value—time money labor tools land and raw materials—exist in limited supply. There are simply never enough resources to meet all our needs and desires. This condition is known as scarcity.
When an economy is operating efficiently?
When an economy is operating efficiently: It is producing the maximum output with the available resources and technology. When an economy is operating inefficiently: It is operating inside its PPF this usually occurs because of unemployed resources it can produce more of one good without producing less of another.
Why are all goods and services scarce?
Scarcity always exists. There simply are not enough goods and services to supply all of society’s needs and wants. This is because the resources that go into making those goods and services are themselves scarce. … All goods and services are scarce because the resources used to produce them are scarce.
What are the 5 basic economic problems?
- Problem # 1. What to Produce and in What Quantities?
- Problem # 2. How to Produce these Goods?
- Problem # 3. For whom is the Goods Produced?
- Problem # 4. How Efficiently are the Resources being Utilised?
- Problem # 5. Is the Economy Growing?
How Vietnam Became An Economic Miracle?
