An outward shift of an economy's production possibilities curve is caused by which of the...
Question:
An outward shift of an economy's production possibilities curve is caused by which of the following?
a. entrepreneurship
b. an increase in labor
c. an advance in technology
d. all of the above
Production Possibility Curve:
The term Production Possibility Curve or PPC depicts the different combination of two services/products that a country can produce by optimally utilizing its scarce resources and technology level.
Answer and Explanation: 1
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View this answer- The correct option is d. All of the above.
A rightward or outward shift in the PPC of any nation depicts a rise in the production of both the products...
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Shifts in the Production Possibilities Curve
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Chapter 1 / Lesson 5
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Learn about the production possibilities frontier (PPF). See what the PPF graph represents and what causes the ppc curve to shift outward.
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- Technological innovations will cause: a. the production possibilities curve to shift to the left. b. the production possibilities curve to shift to the right. c. the production possibilities curve to stay the same. d. an economy to operate below its produ
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- Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF)? a. We live in a world with only two goods. b. There are no increases in technology. c. There is no change in available resources. d
- The level of output that corresponds to the full employment of the labor force: a. is also called potential GDP. b. shifts to the right as the economy accumulates more resources. c. continuously shifts to the right over time as technological advances t
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- Which of the following is likely to affect the position and shape of society's production possibilities frontier? a. Volume of physical resources. b. Level of labour skills. c. Level of technology. d. Amount of factories on hand. e. All of the above are c
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- When an economy is producing inside its production possibility frontier a. it is efficient so long as it is producing what people want. b. it must overcompensate by producing outside the curve to achieve efficiency. c. only technological advances will
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- Increasing opportunity costs of producing goods imply that the production possibilities curve will be: a. downward sloping. b. upward sloping. c. bowed inward. d. bowed outward.
- Increases in resources or improvements in technology will cause the production possibilities frontier to: a. shift outward. b. shift upward. c. become a straight line. d. become horizontal. e. become vertical.
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- The economy is at a point below the production possibilities curve. What is the most likely explanation for this? a. All resources are not being utilized or a technical inefficiency exists in the production process b. A technical efficiency exists in a
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- All the following may shift the Production Possibilities Curve to the right except: a) Training and education. b) An increase in population. c) Advanced technology. d) Preservation of the environment.
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- Which of the following are examples of technological advance, and which are not: an improved production process; entry of a firm into a profitable purely competitive industry; the imitation of a new production process by another firm; an increase in a fir
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- An economy uses only labor as input to produce two goods, A and B. If its production possibilities frontier (PPF) of two goods is a negative-sloped straight line, what is the implication in opportunity costs? Will the law of increasing costs still hold?
- Suppose either computers or televisions can be assembled with the following labor inputs: |Units produced|1|2|3|4|5|6|7|8|9|10 |Total labor used|3|7|12|18|25|33|42|54|70|90 a) Draw the production possibilities curve for an economy with 54 units of labor.
- A. Diminishing marginal productivity B. Gains from technological factors C. Labor specialization D. Management hierarchy E. Management specialization F. Shirking Of the above, which are reasons why a firm may experience economies of scale? A. Yes /
- The [{Blank}] shows the economy's potential growth rate as determined by the real factors of production and the technology or new ideas that allow these factors to become more productive over time. a
- Economic growth can be pictured in a production possibilities curve diagram by: a. shifting the production possibilities curve out. b. moving from right to left along the curve. c. moving from left to right along the curve. d. shifting the production poss
- In reference to the concept of economic growth, explain the difference between a movement along an existing production possibility curve and an outward shift in a production possibility curve.
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- What would cause a firm's production function to change? a. Expanding the size of the factories, b. Increasing the quantity of labor and capital, c. Increasing the quantity of capital, d. Increasing the quantity of labor, e. The adoption of new techno
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- Along a given production-possibilities curve involving two goods, producing more of one good requires that: a. a better technology be employed. b. more of the other good be produced. c. less of the other good be produced. d. the production of the other go
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- Suppose there is an increase in technology that allows workers used in the production of good X to produce more of good X per hour they work. A result of this increase in technology will be (assume th
- The production possibilities curve would shift outward as a result of a(n): a) decrease in labor productivity. b) increase in absenteeism. c) new integrated circuit that revolutionizes the defense industry. d) increase in short-run aggregate supply. e) in
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- 1. Specialization and trade allow individuals to: A. their own production possibilities frontier (PPF) B. shift their PPF outward. C. produce more goods with less technology. D. eliminate scarcity. E
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- Because of increasing opportunity costs, the production possibility curve: a. is bowed out from (or concave to) the origin b. can be either downward- or upward-sloping c. at first rises, then falls e
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