Economic growth can be pictured in a production possibilities curve diagram by: a. shifting the...
Question:
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 possibilities curve in.
Production Possibilities Curve:
A production possibilities curve plots all combinations of two distinct goods that can be produced if an economy is using all resources available in the most efficient manner. This means there is no cyclical unemployment and all available technology is being used.
Answer and Explanation: 1
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By moving along the production possibilities curve, some amount of one good is given up to get more of another. There is no economic growth...
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Production Possibilities Curve: Definition & Examples
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Chapter 11 / Lesson 28
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Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.
Related to this Question
- On a production possibilities curve, growth is represented by: a. a movement down the production possibilities curve. b. a movement up the production possibilities curve. c. an outward shift of the production possibilities curve. d. an inward shift of the
- Economic growth causes the: A. a production possibilities curve to shift rightward and the long-run aggregate supply curve to shift rightward. B. production possibilities curve to shift leftward and the long-run aggregate supply curve to shift leftward. C
- On a production possibilities curve, unemployment is represented by: a. a point on the production possibilities curve. b. the points at which the production-possibilities curve touches each axis. c. a point below or to the left of the production possibili
- Economic growth in the long run: 1- shifts the production possibility curve outwards 2- moves the economy along the production possibilities curve 3- shifts the aggregate demand curve to the left 4- m
- Economic growth would be represented by a(n): a. leftward shift in the long-run aggregate supply curve (LRAS). b. inward shift of the production possibilities curve. c. rightward shift in the long-run aggregate supply curve (LRAS). d. movement along the l
- On a production possibilities curve, a change from economic inefficiency to economic efficiency is obtained by: a. movement along the curve. b. movement from a point outside the curve to a point on the curve. c. movement from a point inside the curve to a
- Unemployment: A. causes the production possibilities curve to shift outward. B. can exist at any point on a production possibilities curve. C. is illustrated by a point outside the production possibilities curve. D. is illustrated by a point inside the pr
- If there is an increase in labor productivity: a) the production possibilities curve would shift outward and the long-run aggregate supply curve would shift rightward. b) the production possibilities curve would shift inward and the long-run aggregate sup
- 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
- A war would most likely: a. Make the production possibilities curve flatter b. Shift the entire production possibilities curve outwards c. Shift both of the economic sectors' intercepts inwards d. Make the production possibilities curve steeper
- 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.
- 1. Clean air is a scarce resource. a. True b. False 2. Economic growth can be pictured in a production possibilities curve diagram by a. shifting the production possibilities curve out. b. moving fro
- Economic growth could be portrayed as: a. Inward shift from the production possibilities Frontier b. outboard shift from the production possibilities Frontier c. movement from one point to another poi
- On a production possibilities curve, a change from economic inefficiency to economic efficiency is obtained by which of the following? a. movement along the curve b. movement from a point outside the curve to a point on the curve c. movement from a point
- Using a production possibilities curve, unemployment is represented by a point located: a. near the middle of the curve. b. at the top corner of the curve. c. at the bottom corner of the curve. d. outside the curve. e. inside the curve.
- Economic growth can be depicted on a production possibilities frontier (PPF) as an: a. inward shift of the PPF. b. outward shift of the PPF. c. inward rotation along the x-axis. d. inward rotation along the y-axis. e. increase in opportunity cost.
- Economic growth can be represented by Select one: a. a movement down the production possibilities frontier (PPF). b. a movement up the production possibilities frontier (PPF). c. an inward shift of the production possibilities frontier (PPF). d. an ou
- An increase in a country's technology would most likely: A. move the country further up its production possibilities curve. B. move the country to a point closer to its production possibilities curve C. shift its production possibilities curve to the righ
- In the production possibilities frontier framework, unemployment is represented by: A) an inward shift of the curve. B) a point located inside the curve. C) a point located outside the curve. D) a point located on the curve.
- Using a production possibilities curve, unemployment is represented by a point located where? a. near the middle of the curve b. at the top corner of the curve c. at the bottom corner of the curve d. outside the curve e. inside the curve
- If the red curve is the production possibilities frontier (PPF) derived by the production function, then a) Any point that lies to the left of the PPF is unattainable. b) Any point that
- Draw and explain the production possibilities curve, noting the point that are feasible, efficient, inefficient, not feasible, and possible movements of the curve.
- In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border would a. move the point of production along the production possibility curve. b. shift the production possibi
- An increase in an economy's productive resources a. implies that the law of increasing costs no longer applies. b. shifts its production possibilities curve inward. c. shifts its production possibilities curve outward. d. has no effect on its production p
- The production possibilities curve will shift outward, upward, and \ or, to the right when? A) corporate profits increase. B) Economic growth occurs. C) Resources are used more efficiently. D) there is a reduction in labour.
- As you move from left to right along a production possibilities frontier (PPF) that is bowed out from the origin, the opportunity cost of producing the product on the horizontal axis increases. As
- Education and training that improve the skill of the labor force are represented on the production possibilities curve by a(n): a. movement along the curve. b. inward shift of the curve. c. outward shift of the curve. d. movement toward the curve from an
- Illustrate opportunity cost with a production possibilities curve (this would involve any two products and numbers). What would the production possibilities curve actually mean?
- If the curve of a production possibility frontier is concave, would the opportunity cost of clothing production increase if the shape of the curve is convex instead?
- When an economy grows, its production possibilities frontier: a. shifts to the right. b. shifts to the left. c. shifts upward. d. shifts downward.
- Shifting the production possibilities curve An outward shift of an economy's production possibilities curve is caused by a. entrepreneurship. b. an increase in labor. c. an advance in technology. d. all of the above.
- A production possibilities curve that shows the Law of Increasing Opportunity Costs would be: A. concave from the origin B. convex from the origin C. a diagonal line D. a vertical line E. a horizontal line
- On a production possibilities curve, the opportunity cost of good X in terms of good Y is represented by a. the distance to the curve from the vertical axis. b. the distance to the curve from the horizontal axis. c. the movement along the curve. d. Al
- In order for a country to increase its future economic growth, it must choose a point that is: a. below its production possibilities curve. b. further along on its production possibilities curve toward the capital goods axis. c. further along on its produ
- How would the following events be shown using a production possibilities curve for housing and food? (Show a graph of a production possibilities curve for part D)). a. The economy is experiencing doub
- A production possibilities curve (PPC) is an economic model that: a. Depicts the amounts of two goods that can be produced. b. Indicates the prices of the goods being produced. c. Does not reflect the opportunity costs associated with producing various
- As you move left to right on a linear production possibilities frontier (PPF), the opportunity cost of producing the good on the vertical axis: a. decreases. b. increases. c. stays the same. d. increases then decreases.
- Along a production possibilities curve, an increase in the production of one good can be accomplished only by: a. decreasing the production of another good. b. increasing the production of another good. c. holding constant the production of another good.
- 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.
- A point outside the production possibilities curve is: A. unattainable without economic growth. B. attainable and the economy is efficient. C. unattainable without inflation. D. attainable, but the economy is inefficient.
- Draw a production possibilities curve with public goods on the vertical axis and private goods on the horizontal axis. Assuming the economy is initially operating on the curve, indicate how the production of public goods might be increased. How might the
- In order for Ethiopia to increase its future economic growth, it must choose a point that is: a. below its production possibilities curve. b. further along on its production possibilities curve toward the capital goods axis. c. further along on its produc
- The production possibilities curve will shift outward (upward, and or, to the right) when what?
- Education and training that improve the skill of the labor force are represented on the production possibilities curve by which of the following? a. a movement along the curve b. an inward shift of the curve c. an outward shift of the curve d. a movement
- Draw and explain a production possibility curve that shows an increasing trade-off.
- If opportunity costs are constant, the production possibilities frontier is graphed as a _____. a. positively sloped straight line b. negatively sloped curve bowed in toward the origin c. negatively sloped straight line. d. ray from the origin
- What is the Production Possibilities Curve? Give a personal example of a production possibilities curve.
- A production possibilities curve is negatively sloped because: a. Once on the frontier, it is only possible to increase production of one good by reducing production of the other b. The price of a goo
- A point beyond (to the right of) the production possibilities curve illustrates: a. a production combination of no inflation and no price changes over time. b. a production outcome that cannot be achieved at this point in time. c. that resources are not u
- As one progresses from a one-person economy to a large, multi-person economy, the shape of production possibilities curve changes from: a. downward sloping to upwards sloping. b. linear to convex (bowed into the origin). c. concave (bowed out from the ori
- On a production possibilities curve, the opportunity cost of good X in terms of good Y is represented by which of the following? a. the distance to the curve from the vertical axis b. the distance to the curve from the horizontal axis c. the movement alon
- The idea of increasing opportunity cost is reflected in the: a. linear shape of the production possibilities frontier. b. bowed in shape of the production possibilities frontier. c. bowed out shape of the production possibilities frontier. d. positive slo
- In what ways are the bowed-out shape of the production possibilities curve and the law of increasing opportunity cost related?
- On a production possibilities curve, production is efficient if Select one: a. the production combination of goods is inside the curve. b. the production combination of goods is outside the curve. c. the production combination of goods is on or inside
- The position of the long-run aggregate supply curve is determined by _____. a. the production possibilities curve. b. the interest rate effect. c. the long-run aggregate demand curve. d. the open economy effect.
- A production possibilities curve shows the various combinations of two outputs that: a. consumers would like to consume. b. producers would like to produce. c. an economy can produce. d. an economy should produce.
- Opportunity costs are reflected by: a. A swap of one technology for another along a nation's production possibilities curve. b. The negative slope of a nation's production possibilities curve. c. That fact that no matter what you choose you will be worse
- Draw production possibilities curve with public goods on the vertical axis and private goods on the horizontal axis. Assuming the economy is initially operating on the curve, indicate how the production of public goods might be increased. How might the ou
- For an economy to produce at a point beyond its production possibilities curve, the economy can: A. use its current set of resources more efficiently B. charge lower prices C. charge higher prices D.
- A bow-shaped Production Possibilities Curve represents _____.
- In terms of the production possibilities model, the law of increasing costs simple asserts that the curve is a. downward sloping b. upward sloping c. bowed outwards away from the origin d. bowed i
- In order for Ethiopia to increase its future economic growth, it must choose a point that is a. below its production possibilities curve. b. further along on its production possibilities curve toward the capital goods axis. c. further along on its product
- The production possibility curve that shows an increasing trade off is called _.
- Give graphical representation of production possibility curve.
- When an economy sacrifices the production of consumption goods to produce more capital goods, we would expect that the production possibilities curve will: a. shift about in random fashion b. shift inward c. shift outward d. become a straight line
- A point that lies inside the Production Possibilities Curve may be caused by _____.
- Opportunity cost is evident in the production possibilities frontier (PPF) graph a. as you move from one point on the frontier to another point on the frontier. b. as you move from the origin to any inefficient point. c. as you move from one unattainable
- The long-run ATC curve is often called the firm's: a. planning curve. b. capital-expansion path. c. total-product curve. d. production possibilities curve.
- If a country is producing efficiently, it will produce __ its production possibilities curve. If a country is producing inefficiently, it will produce __ its production possibilities curve. a. above; on b. above; below c. below; on d. on; below
- The fact that the slope of the production possibilities curve becomes steeper as you move down along the curve indicates what?
- 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?
- The bowed shape of the production possibilities frontier can be explained by the fact that? A) all resources are scarce. B) economic growth is always occurring. C) the opportunity cost of one good in terms of the other depends on how much of each good t
- When opportunity cost is constant across all production levels, the productions possibilities frontier is: A. concave to the origin. B. convex to the origin. C. undefined. D. shifted. E. a straight diagonal line sloping downward from left to right.
- In the production possibilities model of an economy, when there is full employment of resources A. a nation will be operating at an interior point within its production possibilities curve. B. a nation will be operating on the production possibilities c
- The curve that shows different combinations of inputs that yield the same level of output is called _________. a) an Isoquant b) an Isocost curve c) a Production function d) a Production possibility curve
- Any point inside a production possibilities curve gives what indication about the subject economy? a. That it is efficient b. That unemployment is decreasing c. That production levels are increasing d. That it is inefficient
- In a Production Possibilities Curve depicting the trade-off between with capital goods vs. consumer goods, an economy choosing more capital goods and less consumption goods will, ceteris paribus: a. Be inefficient b. Grow slower c. Grow faster d. Not have
- All points on this production possibilities curve necessarily represent: a. society's optimal choice. b. less than full use of resources. c. unattainable levels of output. d. full employment. FIGURE 1.2 The production possibilities curve. Each point on th
- On a production possibility frontier, opportunity cost is: a. independent of the slope of the curve. b.the decrease in the output of one good when the output of the other good is increased. c. the
- An improvement in technology causes the production possibilities frontier (PPF) to? a. shift to the right. b. pivot upward. c. shift to the left. d. pivot downward.
- A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called a. a production possibilities frontier (PPF). b. a supply curve. c. opportunity cost. d. a consumer demand curve. e. absol
- Different types of labor, capital, and natural resources have different capabilities to produce goods and services. In the Production Possibility Frontier (Curve) model, this phenomenon implies an) [{Blank}] opportunity cost and a [{Blank}] shaped curve.
- Scarcity, choice, and opportunity cost can be illustrated with the aid of a production possibilities curve (PPC), also called a Production Possibilities Frontier (PPF). In terms of this statement, discuss the importance of the production possibility front
- Using a production possibilities curve, explain the opportunity cost principle. Suppose an economy produces only food and housing. Draw and explain the characteristics of its production possibilities
- If an economy is experiencing unemployment, it is operating at a point A. on its production possibilities curve (PPC). B. below its PPC. C. beyond its PPC. D. at the horizontal intercept of its PPC. E. at the vertical intercept of its PPC.
- 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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- A point on the frontier of TGE production possibilities curve is _.
- The investment demand curve will shift to the left as a result of: a: a decrease in business taxes. b: an increase in the excess production capacity available in industry. c: increased business optimism with respect to future economic conditions. d: a
- The production possibilities curve below shows the hypothetical relationship between the production of food and clothing in an economy. Combination Food Clothing A 0 4 B 7 3 C 13 2 D 18 1 E 22 0 Instructions: Enter all values as whole numbers. a)
- Describe the production possibilities curve implications for an economy that doesn't devote current resources towards the production of capital.
- Suppose that an economy has the PPF as shown in the table below. Production Possibilities a. Plot these production possibilities, label the points, and draw the PPF (put good B on the x-axis). b. If the economy moves from possibility c to possibilit
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- How is the production possibilities frontier related to the production contract curve? The production possibilities frontier shows A. the total cost of producing combinations of two goods along the production contract curve. B. which points on the product
- Consider the figure at the right. This economy moved from production possibilities boundary A to production possibilities boundary B because A. There has been a decline in productive capacity. B. The
- The bowed shape of the production possibilities frontier can be explained by the fact that: a. all resources are scarce. b. economic growth is always occurring. c. the opportunity cost of one good in terms of the other depends on how much of each good the
- According to the neoclassical growth model, a technological change [{Blank}] and a change in the capital stock [{Blank}]. a) Shifts the productivity curve; shifts the productivity curve, b) Shifts the productivity curve; creates a movement along the pro
- In a production possibilities frontier, which of the following would describe the location of an efficient point of production? a) Just on the inside of the curve or line, b) On the inside of a curve, but not on the inside of a straight line, c) Just on t
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