If society is producing a combination of goods on its production possibilities frontier: A. it...
Question:
If society is producing a combination of goods on its production possibilities frontier:
A. it must be employing all available resources.
B. it must be growing.
C. it is using all the available natural resources but may not be using all available labor resources.
D. Both a and b.
Economies and Resources:
An economy is supposed to take scarce resources like labor and land and turn them into good/services that people demand. The goal is production which is why we use GDP as the main economic metric.
Answer and Explanation: 1
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View this answerAnswer: A
The production possibilities frontier shows us each bundle of output we can produce if we use all available resources. This means we are...
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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.
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- A shift outward of the production possibilities frontier line indicates: a. economic expansion has occurred and more of each good or resource can be produced. b. a change between two goods produced. c. less of both goods can be produced. d. the produc
- The factors of production are: a. never as useful as people expect them to be. b. valuable only because they are owned by corporations seeking to make a profit from them. c. scarce resources. d. abundant without limit on the planet.
- Whenever productive resources are used to make capital goods: A. absolute advantage occurs. B. society is giving up current consumption. C. the production possibilities curve becomes flatter. D. society is not producing efficiently.
- If an economy is being "productively efficient," then that means the economy is A. producing the products most wanted by society. B. fully employing all economic resources. C. maximizing the returns to factors of production. D. using the least costly prod
- Produced goods used as inputs for the production of other goods comprise the resource known as a. natural resources. b. services. c. capital. d. entrepreneurship.
- 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?
- 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
- 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.
- Ceteris paribus, if a society is producing at a point on the production possibilities frontier (PPF), it can only increase the production of one good by a. also increasing the production of the second good. b. decreasing the production of the second good.
- The economy experiences economic growth if: A.the resource base decreases. B.the production possibilities frontier shifts inwards. C.the number of workers decreases. D.the production possibilities frontier shifts outwards.
- When is production efficiency achieved? a. resources are not equal productive in all activities. b. the production possibilities frontier shifts outward at an even pace. c. we produce goods and service at the lowest possible cost. d. there are no more tr
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- A good that provides external benefits to society has a. too few resources devoted to its production. b. too many resources devoted to its production. c. the optimal resources devoted to its production. d. not provided profits to producers of the good.
- In order to achieve production efficiency: a. resources must be used to produce the mix of goods and services which are valued most highly by members of society. b Whatever output is produced must b
- When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods A) must change, but they might increase or decre
- Use a production possibilities frontier to illustrate society's trade-off between two "goods" a clean environment and the quantity of industrial output. What do you suppose determines the shape and position of the frontier? Show what happens to the fronti
- For a self-sufficient producer, the production possibilities frontier: a. is the same as the consumption possibilities frontier. b. is greater than the consumption possibilities frontier. c. is less than the consumption possibilities frontier. d. is a
- Use a production possibilities frontier to illustrate society's trade-off between two goods: a clean environment and the quantity of industrial output. What do you suppose determines the shape and position of the frontier? Show what happens to the frontie
- The most efficient combination of resources in producing a given output is the combination that: a) comes closest to using the same quantities of land, labor, capital, and entrepreneurial ability. b) minimize the cost per unit of output. c) uses the small
- A production possibilities frontier shows: a. how money can be allocated among two kinds of goods. b. the limits to future growth of a nation. c. the various combinations of output a nation can produce at a certain time, given its available resources and
- Generally, opportunity costs increase and the production possibilities frontier bows outward. Why? a. Unemployment is inevitable. b. Resources are not equally useful in all activities. c. Technology is slow to change. d. Labor is scarcer than capital.
- If this economy wanted to produce the combination of 900 shirts and 600 pants, the economy would have to: A. begin using its available resources more efficiently than it is currently using them. B. shift resources away from the production of pants and tow
- 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
- If a market is being "productively efficient," then that means the market is: a. Producing the products most wanted by society, b. Fully employing all economic resources, c. Maximizing the returns to factors of production, d. Using the least costly produc
- A country that must decrease production of one good in order to increase the production of another A) must be using resources inefficiently. B) must be producing on its production possibilities frontier. C) must be producing beyond its production possibi
- Goods and services are scarce because: a. people are greedy b. they are produced using scarce resources c. firms keep production low in order to earn higher profits d. they are produced by firms that
- A good that provides external benefits to society has: a. not provided profits to producers of the good. b. too few resources devoted to its production. c. too many resources devoted to its production. d. the optimal resources devoted to its production.
- When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods: a. must increase. b. must decrease. c. must remain the same. d. must change but they might increase or
- As we move along the production possibilities frontier: a. the possibilities of trade-offs diminish. b. the production of one good increases as the production of the other good decreases. c. more of both goods can be produced. d. a trade-off is not possib
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