The production possibilities model shows an inverse relationship between the amount of one thing...
Question:
The production possibilities model shows an inverse relationship between the amount of one thing and the amount of something else that can be produced because
A. the opportunity cost of producing more of something will fall.
B. production of different types will compete for limited resources.
C. of diminishing returns.
Production Possibility Frontier
A production possibility frontier is a graph that shows the combinations of production of two different goods when the economy is using all its resources efficiently.
Answer and Explanation: 1
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View this answerThe correct option is B. production of different types will compete for limited resources.
The two goods that a production possibility frontier will...
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Production Possibilities Curve: Definition & Examples
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Chapter 11 / Lesson 28
878
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 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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- A country possesses a comparative advantage in the production of a product if: a. The opportunity cost, in terms of the amount of the other products that it gives up to produce this product, is lower
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- 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?
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- Three different economies have made choices about the production of capital goods. Which of the following is most likely to produce the greatest growth in the production possibilities curve (PPC)? a. Capital goods produced at the exact rate needed to rep
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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
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- 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
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- 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
- 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
- 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.
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- Concerning a linear, downward-sloping production possibilities curve (PPC), its slope: a. Reveals that increasing amounts of one good must be produced as the same amount of the other good is produced. b. Reveals that smaller and smaller amounts of one g
- If output is produced with two factors of production and with increasing returns to scale, a) there cannot be a diminishing marginal rate of substitution. b) all inputs must have increasing marginal products. c) on a graph of production isoquants, moving
- The production possibilities table below shows the hypothetical relationship between the production of guns (national defense) and butter (social goods) in an economy. [TABLE] If the economy is producing at alternative C, what is the opportunity cost of p
- 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
- 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 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 producer that can produce a product with a lower opportunity cost: (x) has a comparative advantage in the production of that good. (y) may not have an absolute advantage in the production of that good. (z) should specialize in the production of that p
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- Suppose you find a production possibilities frontier (PPF) that is shaped like a straight line. What can you determine about the production of the two goods? A. Production of the two goods is subject to decreasing opportunity costs. B. Production of the t
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