Is complete specialization more or less likely if production possibility frontiers exhibit...
Question:
Is complete specialization more or less likely if production possibility frontiers exhibit increasing costs rather than constant costs?
Complete Specialization:
Complete specialization is when one entity focuses on one part of the production process to increase efficiency. For example, one person produces the tires, another delivers them, another puts them on the car ready to be sold, etc.
Answer and Explanation: 1
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View this answerThe production possibilities frontier shows all the possibilities of production at given inputs and with a limited amount of resources.
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Production Possibilities: Definition, Model & Shifts
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Chapter 57 / Lesson 5
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In economics, production possibilities allow us to visualize opportunity costs. Learn about the definition of opportunity costs of production, explore graphing costs through a model called a production possibilities chart, and consider what might happen upon moving the curve.
Related to this Question
- When a production possibilities frontier is a straight line, production occurs under conditions of: a. constant costs. b. increasing costs. c. decreasing costs. d. none of the above.
- A production possibilities frontier with a bowed outward shape indicates: (a) the possibility of inefficient production (b) constant opportunity costs as more and more of one good is produced (c) increasing opportunity costs as more and more of one good i
- When a production possibilities frontier is bowed out from the origin, production occurs under conditions of: a. constant costs. b. increasing costs. c. decreasing costs. d. none of the above.
- The production possibilities frontier is a straight line when: a. The opportunity cost is zero, b. The opportunity cost is constant, c. The opportunity cost is increasing, d. The opportunity cost is decreasing.
- Opportunities created by trade: induce a greater degree of specialization. are evidenced by higher opportunity costs of production. are few and far between.
- When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost: a. increases. b. decreases. c. might increase, decrease, or remain constant depending on how much people value the additional units of the go
- Can we have decreasing opportunity cost in the production possibility frontier?
- 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
- While producing on the production possibilities frontier, if additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be: a. bowed outward b. bowed inward c. positively sloped d. a straight l
- As an economy produces more of one of the goods on a bowed out production possibilities frontier, what happens to the opportunity cost of producing the good? a. It might increase, decrease, or remain constant depending on how much people value the additio
- 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.
- 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
- Under what condition is the production possibilities frontier linear rather than bowed out? a. when production costs are increasing b. when production costs are decreasing c. when production costs are constant d. when production costs increasing exponenti
- A non-linear (bending) production possibilities model assumes that A. Some land or labor is more productive in one use than another B. Technology can advance C. the opportunity cost of producing more of something will remain constant
- Consider a production possibilities frontier (PPF) that is concave (bowed outward from the origin). Such a PPF displays increasing opportunity costs, meaning that the cost of producing additional units of both goods rises. What is the reason for increasin
- According to the law of increasing opportunity costs: A. The more one is willing to pay for resources, the smaller will be the possible level of production. B. Increasing the production of a particula
- A non-linear ("bending") production possibilities model assumes that: a. technology can advance. b. all combinations of output are possible c. the opportunity cost of producing more of something will remain constant. d. some land or labor is more producti
- When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost: a. remains constant. b. might increase, decrease, or remain constant depending on how much people value the additional units of the good. c.
- Production possibilities curves reflect: A. Constant opportunity costs if technology is held constant, no matter what skills the factors of production have. B. Maximum efficiency in the production of all outputs, given that technology does not change. C.
- As the level of production increases in the short-run, the vertical distance between the Total Variable Cost (TVC) curve and the Total Cost (TC) curve (increases/does not change/decreases) and the ver
- 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?
- Allocative efficiency occurs: A. Anywhere inside or on the production possibilities frontier. B. When the total cost of production is minimized. C. At all points on the production possibilities frontier. D. At only one point on the production possibilitie
- What is the relationship between the bowed-out shape of the production possibilities frontier and the increasing opportunity cost of a good as more of it is produced?
- 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
- The simpler a production process is: a. the greater the cost of production. b. the more likely that transaction costs increase by using centralized control of production. c. the greater the transaction cost of using markets. d. the more likely a firm will
- If prices increase for an export good and provide an incentive to increase production in an economy with specialized resources, will the higher price always outweigh the increasing opportunity cost of
- Specialization and trade allow individuals to a. consume outside their own production possibilities frontier (PPF). b. shift their PPF outward. c. produce more goods with less technology. d. eliminate scarcity. e. produce fewer goods with less technology.
- 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
- Increasing opportunity cost implies that: A. the society will be producing inside its production possibilities frontier. B. producing additional units of one good results in increasing amounts of lost output of the other good. C. producing additional unit
- The long-run average cost of production might decrease as output increases due to? A. indivisible inputs, variable costs, and economies of scale. B. divisible inputs, specialization, and diseconomies of scale. C. indivisible inputs, specialization, and
- As we move along the production possibilities frontier: a. more of both goods can be produced. b. the possibilities of tradeoffs diminish. c. a tradeoff is not possible because nations need all goods. d. the production of one good increases as the product
- The additional production resulting from hiring one more worker is: A. marginal physical product. B. marginal cost. C. additional production. D. marginal production.
- As you move from one efficient point on the production possibilities frontier (PPF) to another efficient point on the PPF, you experience a. decreasing relative cost. b. opportunity cost. c. macroeconomics. d. unlimited resources. e. unattainable combinat
- Marginal external cost _______. A. is not an opportunity cost because it is expressed in dollars B. decreases as production increases C. is an opportunity cost D. is what the producer gives up to
- A bowed out production possibility frontier shows that the: a. opportunity cost relationship is linear. b. opportunity cost of a good is constant as more of the good is produced. c. opportunity cost of a good increases as more of the good is produced. d.
- 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
- We do not see complete specialization in the real world because: a. not all goods and services are traded internationally, production of most goods involves increasing opportunity costs, and tastes for products differ. b. not all goods and services are
- Think of the production possibilities frontier (PPF) model. When society is producing the largest possible output from its resources, it is operating a. inefficiently. b. efficiently. c. with no opportunity cost. d. inside (within) the PPF. e. beyond its
- 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
- Draw a production possibility frontier (PPF) that represents the production possibilities for goods X and Y if there are constant opportunity costs. Next, represent an advance in technology that makes it possible to produce more of X but not more of Y. Fi
- 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
- 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?
- If a nation obtains more resources, points that were outside the production possibilities curve prior to its gaining more resources become: a) attainable b) extraneous c) irrelevant d) obsolete e)
- (1) Production Possibility Frontiers: Studying or Socializing? A) Draw (1) Production Possibility Frontiers: Studying or Socializing? A) Draw a production possibilities curve for the pleasure you get
- When we look at a production possibilities curve, the opportunity cost can be understood as: a) The amount of the other good that must be given up for one more unit of production, b) The point of maximum production of one good, c) The total cost of produc
- 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
- 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
- The negative slope of the production possibilities curve illustrates that a. some resources are always unemployed. b. an economy can produce more of one thing only by producing less of something else. c. opportunity costs are constant. d. business can sel
- The production of a tile manufacturing firm is at the minimum point of its average cost curve. The firm is: a. operating at constant costs. b. operating under diminishing costs. c. making optimum use of its capacity. d. operating under excess capacity. e.
- 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
- A production possibilities frontier illustrates the maximum amount of two different goods that can be produced if: a. The prices of both goods are held constant. b. Low-skilled workers can be prevent
- 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.
- 1. The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the A - amount of the other good that must be given up. B - market price of the additional
- The production possibilities frontier illustrates all of the following concepts except: a. scarcity. b. unlimited wants. c. the law of increasing costs. d. opportunity cost.
- The addition to total costs associated with the production of one more unit of output is referred to as A. average cost. B. marginal cost. C. opportunity cost. D. overhead cost.
- If opportunity costs are increasing, then the production possibilities frontier: A) will be linear and have a negative slope. B) will be positively sloped. C) will be bowed out and have a negative slope. D) reflects the fact that available resources a
- Excess capacity refers to the: a. amount by which actual production falls short of the minimum ATC output. b. fact that entry barriers artificially reduce the number of firms in an industry. c. differential between price and marginal costs that characteri
- 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
- What are economies of scale? a. decreasing average costs as production increases b. increasing average costs as production increases c. increasing fixed costs as production increases d. none of the above
- If an increase in production increases your firm's short-run average total? cost, your firm is likely experiencing Blank and should consider Blank output levels. A. economies of scale; expanding B. diseconomies of scale; expanding C. diseconomies of sca
- 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
- A production possibilities frontier that is a downward- sloping straight line implies a) no economies of scope. b) diseconomies of scale. c) economies of scale. d) economies of scope.
- The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the a.amount of the other good that must be given up. b.amount of resources that must be devote
- Fixed costs: a. Increase with the level of production in the short run. b. Are constant in the short run. c. Can be altered in the short run but not in the long run.
- The notion that specialization in goods that one can produce at a low opportunity cost will make it possible for trading partners to produce a larger joint output is called: a. the law of comparative advantage b. the law of production possibilities c. the
- The production possibility curve that shows an increasing trade off is called _.
- As the quantity produced by a firm increases, marginal cost eventually starts increasing because: A. of diminishing, or decreasing, marginal product of labor. B. in the short run, the firm cannot add workers. C. each additional unit is cheaper to produc
- If there are no fixed costs of production, in the long run, the perfectly-competitive firm will produce (a) where AV C is minimized. (b) more units that would have been produced had there been fixed
- 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
- An increase in the labor force would be reflected in a society's production possibilities frontier (PPF) by an a. increase in opportunity cost. b. inward shift of the PPF. c. outward shift of the PPF. d. outward rotation along the x-axis. e. outward rotat
- A nation is producing at a point inside of its production possibility curve. Which of the following is a possible explanation for this outcome? A. This nation has experienced a permanent decrease in its production capacity. B. This nation has experienced
- A society that is producing its maximum combination of goods and using all available resources for production a. has minimized its opportunity cost. b. has maximized its opportunity cost. c. is operating on its production possibilities frontier (PPF). d.
- The bowed-out (concave) shape of a production possibilities frontier, A) is due to capital accumulation. B) is due to technological change. C) reflects the existence of increasing opportunity cost. D) is due to the equal use of resources in all activities
- 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
- 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.
- If the additional output from each new worker is rising: a) the marginal cost of that output is rising because the only additional cost to producing more output is the additional wages paid to hire more workers. b) the marginal cost of that output is risi
- One of the costs of protectionism is: a. increases in total national output. b. a reduction in the variety of goods in domestic markets. c. greater competition. d. lower opportunity costs of domestic production.
- 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
- If it is possible for a perfectly competitive firm to do better financially by producing rather than shutting down, then it should produce the amount of output at which: a. MR less than MC b. MR = MC c. MR greater than MC d. None 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
- Increasing plant capacity can serve as a barrier to entry if a. an increase in plant capacity lowers the marginal costs of production for an established firm. b. the increase in plant capacity is reversible. c. the increase in plant capacity is irreversib
- Which one of the following would likely shift a production possibilities frontier inward? a) a drought. b) a technological improvement. c) a decrease in the price of natural resources. d) all of the above. e) None of the above since production possibility
- The production possibilities frontier (PPF) shows us: A. all possible two-good combinations in a simple economy. B. opportunity cost. C. the trade-offs that a society makes. D. all of the above
- Production Possibility Frontiers: Studying or Socializing? (a) Draw a production possibilities curve for the pleasure you get between hanging with friends and from doing your Economics problem set. A
- When you have diminishing marginal returns to labor, A. variable costs fall as more output is produced. B. variable costs remain constant as more output is produced. C. fixed costs rise as more output is produced because you have to buy more equipment
- 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.
- If a firm increases production, then its: 1. variable costs rise. 2. All of these are true. 3. fixed costs stay the same. 4. total costs increase.
- Is the cost increase to each additional unit of labor incurred due to being above capacity level and associated to cost with creating capacity? What are the factors that influence the decrease in the marginal production attributed to each additional unit
- The law of increasing costs states that a. the opportunity cost of each additional unit of output of a good over a period of time decreases as more of that good is produced. b. increasing resource prices are inevitable because of scarcity. c. the opportun
- When an increase in the range of goods produced brings a decrease in the average total cost of production, the firm is experiencing A. diminishing returns. B. economies of scale. C. economies of scope. D. diseconomies of scale.
- If a firm is producing so that the point chosen along the production possibility frontier is socially preferred, then that firm is said to have reached its: a) minimum price efficiency. b) utility-maximizing efficiency. c) allocative efficiency. d) produc
- If an economy is producing efficiently and has chosen to produce and consume 12 units of X and 128 units of Y. At this point on the production possibilities frontier, one can use calculus to obtain the opportunity cost of Y as: A) -12 B) -6 C) 0 D)
- If an economy experiences an increase in its capital, everything else constant, then its production possibilities frontier (PPF) will a. Expand outward proportionally b. Expand outward largely in the
- Production Possibilities for Library land Books Magazines 400 0 300 200 200 350 100 450 0 500 What is the opportunity cost to Library land of increasing the production of books from 200 to 300? Which of the following statements is correct? a) The
- 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
- Maximum willingness to pay for factors of production in a perfectly competitive industry increases if : A. market price increases. B. marginal product of inputs decreases. C. a binding minimum wage is imposed. D. All of the above is true.
- In the theory of comparative advantage, a good should be produced in that nation where: A. its cost is least in terms of alternative goods that might otherwise be produced B. its absolute money cost of production is least C. the production possibilities l
- Average fixed costs of production: (a) remain constant. (b) will rise at a fixed rate as more is produced. (c) graph as a U-shaped curve. (d) fall as long as output is increased.
- 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
- The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the Select one: a. Amount of the other good that must be given up. b. Market price of the addit
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