The production possibilities frontier (PPF) shows us: A. all possible two-good combinations in a...
Question:
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
Scarcity
In economics, scarcity refers to the concept of how limited everything is, at least to everything people demand or want. Although the concept of scarcity would still appear to be contestable, we can all agree that natural resources such as oil, silver, gold, or even water are scarce and time, abilities, goods, and services, are scarce. Economics is about trying to consider how individuals or firms make their choices subject to constraints, and these constraints are in some form through a budget, or technology or resources available.
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View this answerThe answer to this question is option D. all of the above.
The production possibilities frontier (PPF) is a powerful model that shows us the...
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Chapter 1 / Lesson 6Learn about scarcity. Understand what scarcity is, review its implications in economics, examine a graph of scarcity, and see some examples of scarcity.
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- What is a production possibilities frontier? How can we show efficiency on a production possibilities frontier? How can we show inefficiency? What causes a production possibilities frontier to shift o
- 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.
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- 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
- Production is inefficient: a. Only when an economy is producing inside its production possibility frontier (PPF), b. Only when an economy is producing at the origin (0.0) on the PPF, c. Production Is never inefficient, d. Only when the economy is produ
- Why is the shape of the production possibilities frontier (PPF) often curved instead of straight? a. To take a potential sunk cost into account, the PPF is curved to distribute the burden of the sunk cost based on allocative efficiency. b. Typically, some
- 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?
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- Use a production possibilities frontier to describe and explain the idea of "efficiency".
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- 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.
- At full employment, a society produces a. somewhere within its production possibilities frontier (PPF). b. somewhere outside its PPF. c. at the origin on its PPF graph. d. on its PPF. e. only one good.
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- Use a production possibilities frontier to describe the concept of efficiency.
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- 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.
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- 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
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