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.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
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...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
What is the Basic Economic Problem of Scarcity?
from
Chapter 1 / Lesson 6
218K
Learn about scarcity. Understand what scarcity is, review its implications in economics, examine a graph of scarcity, and see some examples of scarcity.
Related to this Question
- 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.
- 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
- Any combination of two goods that lies beyond the production possibilities frontier: a) Is currently possible to produce, but not worth trying, b) Represents economic waste, c) Represents a more efficient combination of output than anything lying on the f
- The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and: a. society's preferences. b. the available production technology. c. a fair
- 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.
- When might the production possibilities frontier be bowed inwards? Give an example of a two-good economy where the production possibility set would be bowed inwards.
- Society's production possibilities frontier A. helps explain the immense complexity of the real economy B. demonstrates that, although resources are scarce for individuals, there is no problem of scarcity for society as a whole C. is based on unrealisti
- 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
- 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
- On a bowed-out production possibilities frontier showing possible output levels of Good A and Good B, the opportunity cost of producing the first 10 units of Good A will usually be which one of the fo
- The production possibilities frontier (PPF) shows the various combinations of goods an economy can produce using all of its available resources and the best technology available. While we are more use
- If the economy is getting all that it can from its resources, what is/are high? a. the PPF b. attainable combinations c. production efficiency d. tradeoffs
- 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
- 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)
- 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
- The Production Possibility Frontier represented as a single curve can help introduce many of the most basic concepts of economics. List some uses of the Production Possibility Frontier.
- The production possibilities curve shows the: A. various combinations of two goods that can be produced when society employs all its scarce resources. B. minimum outputs of two goods that will susta
- 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
- Explain use of production possibilities frontier to analyze opportunity costs and trade-offs.
- A society that is producing its maximum combination of goods and using all available resources for production a. is operating outside its PPF. b. has eliminated scarcity. c. is operating on its production possibilities frontier (PPF). d. has maximized
- You are told that the economy is producing efficiently and has chosen to produce and consume 1 unit of X and 39.6 units of Y. At this point on the production possibilities frontier, you can use calculus to obtain the opportunity cost of Y as.
- 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
- 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.
- The production possibilities frontier can be used to demonstrate which of the following? Select all that apply. a. the best tradeoffs that individuals and societies should make b. the tradeoffs forced on individuals and societies because of scarcity c. th
- A point outside (to the right of) the production possibilities frontier is: a. easily attainable. b. not attainable. c. efficient. d. inefficient.
- Can we have decreasing opportunity cost in the production possibility frontier?
- The first principle of economics discussed in Chapter 1 is that people face trade-offs. Use a production possibilities frontier to illustrate society's trade-off between two "goods"- a clean environme
- The production possibilities frontier can be used to demonstrate which of the following? (i) The best tradeoffs that individuals and societies should make. (ii) The tradeoffs were forced on individuals and societies because of scarcity. (iii) The wealth
- A point on the frontier of the production possibilities curve is: a. attainable and the economy is efficient. b. attainable, but the economy is inefficient. c. unattainable and the economy is ineffici
- 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
- On a production possibilities frontier (PPF), where is a point that is impossible for the economy to achieve located?
- Which of the following concepts cannot be illustrated by the production possibilities frontier? a. efficiency b. opportunity cost c. equality d. trade-offs
- The production possibilities curve: a. shows the opportunity cost between all goods and services in an economy. b. allows us to see the concept of absolute advantage. c. graphically illustrates the concept of absolute advantage. d. graphically illustrates
- The choice on a production possibilities set that is socially preferred, or the choice on an individual's budget constraint that is personally preferred, will display. A. allocative efficiency B. the production possibilities frontier C. trade-offs D. scar
- 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
- Suppose that a country is producing at a point inside its production possibilities frontier. Which of the following is true? (a) There will be a large opportunity cost if the country tries to increase its production of any good. (b) The country is produ
- 45. The production possibilities curve represents the set of all A). Feasible combinations of goods that the economy can produce given that a nation?s resources are fully employed B). factors of produ
- 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
- All points inside a production possibilities frontier are: A. possible and inefficient. B. possible. C. inefficient. D. efficient and possible.
- You are told that the economy is producing efficiently and has chosen to produce and consume 6 units of X and 16 units of Y. At this point on the production possibilities frontier, you can use calculus to obtain the opportunity cost of X as: A) 2 B) 1/2
- You are told that the economy is producing efficiently and has chosen to produce and consume 2 units of X and 22.5 units of Y. At this point on the production possibilities frontier, you can use calculus to obtain the opportunity cost of X as: A) 1.4 B)
- 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
- 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 the above statement, discuss the importance of the production possibility
- 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
- The illustrates the various combinations of output that a society can produce if all of its resources are being used efficiently. a. concept of absolute advantage b. law of positive statements c. law of demand d. production possibilities frontier (PPF) e.
- 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
- The first principle of economics is that people face trade-offs. 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
- 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
- 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
- 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
- When an economy produces a combination of goods that lies on the production possibilities frontier: A. resources are being used fully and efficiently. B. prices are constant. C. opportunity cost is constant. D. resources will never be depleted. E. prices
- The optimal mix of output may not be produced by an economy because of the existence of: a) underproduction of public goods. b) internalities. c) inequity. d) production possibilities.
- How does the production possibilities frontier illustrate production efficiency?
- 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 decreases. b. It might increase, decrease, or remain constant depending on how much people
- The production possibilities curve a. shows all combinations of goods that society most desires. b. indicates that any combination of goods lying outside the curve is attainable. c. is bowed out from the origin. d. is bowed in toward the origin.
- A production possibilities frontier will be bowed out if: a) There is scarcity, b) Technology is improving, c) Production of one good involves an opportunity cost, d) Resources are not perfectly adaptable to making each good, e) Resources are used efficie
- When constructing a production possibilities frontier, which of the following assumptions is not made? a. The economy produces only two goods or two types of goods. b. Firms produce goods using factors of production. c. The quantities of the factors of pr
- 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?
- Points inside a production possibilities frontier represent: a. unattainable production combinations. b. efficiency. c. situations where supply exceeds demand. d. unemployment of resources.
- 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
- 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
- The production possibilities frontier model shows that: a) if consumers decide to buy more of a product, its price will increase. b) a market economy is more efficient in producing goods and services than is a centrally planned economy. c) economic gro
- There are two goods, A and B. Suppose the production possibilities frontier (PPF) of a country is given by Q_B = (100 - 2Q_A^2)^{1/2}. The slope of this PPF is -2Q_A/Q_B. Finally, assume that the price of good A is 12 and the price of good B is 4. How muc
- Consider a production possibilities frontier (PPF) where the two goods are swords and ankle bracelets. The PPF is bowed outward when a. an economy is self-sufficient does not trade with other economies. b. the opportunity cost of increasing the producti
- 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
- Use a production possibilities frontier to describe the idea of efficiency.
- Any point on a country's production possibilities frontier represents a combination of two goods that an economy: a. will never be able to produce. b. can produce using all available resources and technology. c. may be able to produce in the future with m
- The first principle of economics is that people face trade-offs. 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 sh
- 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.
- 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
- 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?
- 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
- Use a production possibilities frontier to describe and explain the idea of "efficiency".
- Using production possibilities frontier, illustrate society's trade-off between two goods a clean environment and the quantity of industrial output. What the shape and position of the frontier? What happens to the frontier if engineers develop a new way
- 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 re
- Cassandra is told that the economy is producing efficiently and has chosen to produce and consume 20 units of X and 27 units of Y. At this point on the production possibilities frontier, she can use calculus to obtain the opportunity cost of X as: A) 3
- 1. A production possibilities frontier can shift outward if a. resources are shifted from the production of one good to the production of the other good. b. the economy abandons inefficient producti
- 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.
- Consider the production possibilities frontier for a country. Which points can be defined as efficient? a. all points that are on the production possibilities frontier b. all points that are feasible c. all points outside the frontier d. all points either
- 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 production possibilities frontier illustrates all of the following concepts except: a. scarcity. b. unlimited wants. c. the law of increasing costs. d. opportunity cost.
- Use a production possibilities frontier to describe the concept of efficiency.
- Use a production possibilities frontier (PPF) to describe the concept of efficiency.
- 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
- 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.
- Use the production possibilities frontier to explain fully economic growth, efficiency, and inefficiency.
- Which is not a statement about the "production possibility frontier"? A. It is significant because it represents all possible output combinations the economy can choose from when it is operating at full capacity. B. It must be sometimes curved to reflect
- The area inside (within) the production possibilities frontier (PPF) contains a. normative points. b. positive points. c. efficient points. d. inefficient points. e. high opportunity cost points.
- Given production possibilities frontier (a), the combination of Capital and consumer goods indicated by point L: O would entail substantial unemployment. O would entail an inefficient use of society's resources. O is beyond the productive capacity of t
- 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
- A point or combination that is on the production possibilities frontier is a) attainable and efficient. b) attainable but not efficient. c) unattainable and efficient. d) unattainable, but not eff
- An economy's production possibilities frontier is also its consumption possibilities frontier: a. under all circumstances b. under no circumstances c. when the economy is self-sufficient d. when the r
- Assume that the following table describes the production possibilities frontier (PPF) confronting an economy. Using that information: Potential output combinations homeless shelters hospitals A 25 0 B 21 1 C 16 2 D 9 3 E 0 4 (a) What is the opportunity
Explore our homework questions and answers library
Browse
by subject