Which of the following, will not cause a shift in the production possibility curve? a. A rise in...
Question:
Which of the following, will not cause a shift in the production possibility curve?
a. A rise in the price of one or both of the goods being produced,
b. An improvement in the technology used to produce one of the goods,
c. An improvement in the technology used to produce both of the goods,
d. An increase in the quantity of resources available in the economy.
Production Possibility Curve
Production in economics is the combination of various resources to derive output. The efficiency of the process depends on the available resources and level of technology. A production possibility curve also referred to as a production possibility frontier shows the combinations of outputs that can be obtained with a given level of technology and finite resources. A PPF demonstrates the concept of scarcity and trade-off such that an increase in the production of one commodity leads to a decrease in the other.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerThe correct answer is (a).
Points on the PPF curve show the levels of production characterized by efficient use of resources. Output levels above 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
Shifts in the Production Possibilities Curve
from
Chapter 1 / Lesson 5
294K
Learn about the production possibilities frontier (PPF). See what the PPF graph represents and what causes the ppc curve to shift outward.
Related to this Question
- A production possibilities frontier will shift outward for all of the following reasons except: A) an increase in the stock of capital. B) a technological improvement. C) opportunity cost is increasing. D) an increase in the labor force. E) none of th
- Product C is an input to the production of Product D. Ceteris paribus, a technological improvement in the production of Product C will cause the market supply curve for Product D to: a) not shift b) shift to the left c) not enough information to answer th
- Which of the following would most likely shift the production possibilities curve inward? a. An increase in the number of hours factories are in use b. An increase in the production of capital goods c. Technological progress d. A decrease in the ave
- Which of the following might increase product price from P3 to P5? a. An improvement in production technology. b. A decline in the price of a substitute good. c. An increase in the price of a complementary good. d. Rising incomes if the product is a norma
- A shift in the production possibilities frontier curve will occur as a result of all of the following except: a. A change in the endowment of resources, b. A change in technology, c. A change in the production of one good relative to another good, d. A ch
- All of the following will cause an increase in economic growth except A. an increase in the degree of excess capacity. B. an increase in the amount of capital goods. C. a change in technology. D. an increase in the factors of production. E. an increase in
- A shift in the production possibilities frontier curve will occur as a result of all of the following except: a) a change in the endowment of resources b) a change in technology c) a change in the production of one good relative to another good d) a chang
- Which of the following would raise the market price? a. a reduction in the firm's output b. an increase in the firm's input cost c. exits from the industry d. an improvement in technology
- Which of the following will cause the production possibilities curve for two goods to shift to the left? Select one: a. An increase in the amount of resources needed to produce the goods. b. A decrease in the technology used to produce the goods. c. An
- Which of the following will cause a decrease in aggregate quantity supplied? a. An increase in worker productivity. b. A decrease in the prices of inputs. c. A lower price level. d. Technological changes that lower production costs. e. An increase in the
- A production possibilities frontier can shift outward for all of the following reasons except: A. a larger work force. B. a decrease in the size of the labor force. C. an increase in the skills of the labor force. D. an improvement in technology.
- An improvement in technology causes the production possibilities frontier (PPF) to? a. shift to the right. b. pivot upward. c. shift to the left. d. pivot downward.
- Shifting the production possibilities curve An outward shift of an economy's production possibilities curve is caused by a. entrepreneurship. b. an increase in labor. c. an advance in technology. d. all of the above.
- 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.
- 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
- Which of the following factors will lead to a decrease in the current supply of a good? A. A fall in the current price of a good or service B. A technological advance that decreases production costs C. A decrease in the price of inputs to the production p
- A technological advance lowers production costs such that the quantity supplied increases by 60 units of the product at each price. As a result of the technological change, equilibrium output in this
- An outward shift of an economy's production possibilities curve is caused by which of the following? a. entrepreneurship b. an increase in labor c. an advance in technology d. all of the above
- Which of the following explains why production rises in most years? A. increases in prices of goods and services B. increases in stock prices C. aging population D. technological innovation
- If an economy's production possibilities curve has shifted out, we can unambiguously conclude that: a. the supply of natural resources increased. b. potential GDP increased. c. technology improved. d. the supply of labor increased.
- 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
- Any movement along a bowed-out production possibilities curve frontier involves A. the consumption of more capital goods. B. an improvement in technology. C. the production of more of one good and less of the other. D. the production of more of both goods
- 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
- 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
- An outward shift of an economy's production possibilities curve is caused by an: a. increase in capital. b. increase in labor. c. advance in technology. d. All of the answers are correct.
- An increase in a country's technology would most likely: A. move the country further up its production possibilities curve. B. move the country to a point closer to its production possibilities curve C. shift its production possibilities curve to the righ
- Which one of the following would not shift the supply curve of good X to the right? A) A fall in the price of Y, a substitute in the production of X B) An improvement in the technology used in the production of X C) A rise in the price of X D) An inc
- Along a production possibilities curve, an increase in the production of one good can be accomplished only by which of the following? a. decreasing the production of another good b. increasing the production of another good c. holding constant the product
- Which would be least likely to cause the production possibilities curve to shift to the right? a. An increase in the labor force b. Improved methods of production c. An increase in the education and training of the labor force d. A decrease in unemplo
- Which of the following is a possible effect of a price ceiling? a. A surplus of the good. b. Increases in product quality. c. Increased gains from trade. d. People will waste time in lines waiting to purchase the good.
- Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF)? a. We live in a world with only two goods. b. There are no increases in technology. c. There is no change in available resources. d
- Any movement along a bowed-out production possibilities frontier involves A. the production of more of both goods. B. an improvement in technology. C. the consumption of more capital goods. D. the production of less of both goods. E. the production of mor
- Which would be least likely to cause the production possibilities curve to shift to the right? a. An increase in the labour force b. Improved methods of production c. An increase in the education and training of the labor force d. A decrease in unempl
- A production possibilities curve is drawn based on which of the following assumptions? a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources such as nonrenewable resources will decl
- 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
- An outward shift of an economy's production possibilities curve is caused by: a. entrepreneurship b. an increase in labor c. an advance in technology d. all of the above
- Technological innovations will cause: a. the production possibilities curve to shift to the left. b. the production possibilities curve to shift to the right. c. the production possibilities curve to stay the same. d. an economy to operate below its produ
- Which of the following will cause a country's production possibilities line to shift outward? A. an increase in population B. technological progress C. a discovery of a new supply of resources D. all of the above
- Increases in resources or improvements in technology will cause the production possibilities frontier to: a. shift outward. b. shift upward. c. become a straight line. d. become horizontal. e. become vertical.
- 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
- Which would be least likely to cause the production possibilities curve to shift to the right? a. An increase in the labor force b. Improved methods of production c. An increase in the education and training of the labor force d. A decrease in unemploymen
- 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?
- A change in supply may be caused by a. all of the other choices. b. changes in the profitability of producing other products. c. an improvement in technology. d. a change in the number of producers. e. a change in the price of inputs.
- 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
- Which of the following options is correct? A rise in the price of imports or a fall in the price of exports will a. improve the terms of trade. b. contract the production possibilities curve. c. expand the production possibilities curve. d. worsen the ter
- 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
- Which of the following is true about the production possibilities curve when a technological progress occurs? a. Shifts inward to the left b. Becomes flatter at one end and steeper at the other end c. Becomes steeper d. Shifts outward to the right e.
- 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
- All the following may shift the Production Possibilities Curve to the right except: a) Training and education. b) An increase in population. c) Advanced technology. d) Preservation of the environment.
- The introduction of production technology to replace labor in a manufacturing process would likely result in which of the following? A. A shift in costs from variable costs to fixed costs B. A decrease in total manufacturing costs C. An increase in total
- An advance in technology in the production of good X causes a) the supply curve for good X to change from upward sloping to vertical. b) the supply curve for good X to change from vertical to upward sloping. c) a rightward shift in the supply curve for
- The positively-sloped part of the long-run average total cost curve is due to which of the following? A) Diseconomies of scale. B) Diminishing returns. C) The firm being able to take advantage of large-scale production techniques as it expands its output.
- If there is a change in input prices, what is the most likely impact on production isoquants? a. They will shift leftward towards the origin. b. The curvature of the isoquant will change. c. They will remain unchanged. d. They will shift outward away from
- Which of the following will result in a movement along the aggregate production function? A. a technological advance B. training of the workforce C. an increase in the country's capital stock
- Which of the following would shift the production possibilities frontier outward? a) more efficient use of existing resources and technology. b) society's desire to produce more of the goods. c) an
- The production possibilities curve may shift outward as a result of a(n) A. increase in consumer spending. B. decrease in short-run aggregate supply. C. decrease in costs of production. D. increase in worker training courses. E. increase in short-run aggr
- 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
- In which of the following situations would a firm be more likely to rely on a labor-intensive method of production? A) When the firm's output can be produced using the assembly line method of production. B) When the rate of technological innovation is hig
- Which of the following would cause a country's production possibilities frontier to shift inwards? a. a decrease in capital and labor resources b. a decline in the technology of production c. a dec
- 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
- Which of the following would not lead to an outward shift of a future production possibilities frontier (PPF)? a. population growth b. increased investment today c. an increase in technology d. the discovery of new resources e. a decline in life expectanc
- Along a production possibilities curve, an increase in the production of one good can be accomplished only by: a. decreasing the production of another good. b. increasing the production of another good. c. holding constant the production of another good.
- Along a given production-possibilities curve involving two goods, producing more of one good requires that: a. a better technology be employed. b. more of the other good be produced. c. less of the other good be produced. d. the production of the other go
- A production possibilities curve is drawn based on which of the following assumptions? a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources such as non-renewable resources will dec
- Which of the following determinants shifts the long-run aggregate supply curve to the right? A) Labor resource availability B) Changes in capital C) Production technology D) All of the above
- 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
- A production possibilities curve is drawn based on which of the following assumptions? a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources such as nonrenewable resources will declin
- 1) Which of the following scenarios will cause a country's production possibilities line to shift outward? A) Population increase B) Technological progress C) Discovery of a new supply of resources
- Improvements in technology will shift an economy's production possibilities curve a. inward, then outward. b. outward, then inward. c. outward. d. inward.
- Which of the following would not cause a shift in long-run aggregate supply? a. An increase in aggregate expenditures b. A decrease in capital investment c. A technological advance in the consumer goods market d. An increase in education for employees e.
- 1. An increase in capital goods and a decrease in consumer goods will? A) eventually lead to a shift to the right of the production possibilities curve. B) increase a nation's capacity to produce. C) lead to more rapid economic growth. D) do all of the ab
- Economic growth causes the: A. a production possibilities curve to shift rightward and the long-run aggregate supply curve to shift rightward. B. production possibilities curve to shift leftward and the long-run aggregate supply curve to shift leftward. C
- Which of the following is true about the production possibilities curve when technological progress occurs? a. Shifts inward to the left b. Becomes flattered at one end and steeper at the other end c. Becomes steeper d. Shifts outward to the right e.
- Moving from one point to another on a production possibilities frontier implies: a. increasing the production of both goods. b. increasing the production of one good and decreasing the production of another. c. holding the production levels of both goods
- Which of the following shifts the long-run aggregate supply curve to the right? a. Neither technological progress nor an increase in human capital, b. An increase in human capital but not an increase in technological progress, c. Both technological progre
- Suppose wage rate is $16 per hour and the price of the product is $2, but that there is a technological breakthrough which increases output by 60 percent from the output level depicted in Q1, for any
- Which of the following does not expand economic growth? A. Widen economic opportunities B. Scarcity C. New technology D. Production facilities
- Which one of the following would cause a rightward shift in the supply curve? a. A new tax is imposed on the production of the goods. b. Some firms that have been producing the good go out of business. c. Firms producing the good find ways of lowering
- We often work with production technologies that give rise to initially increasing marginal product of labor that eventually decreases. For such production technologies, the marginal product of labor is increasing so long as the slope of the production fr
- 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
- An increase in an economy's productive resources a. implies that the law of increasing costs no longer applies. b. shifts its production possibilities curve inward. c. shifts its production possibilities curve outward. d. has no effect on its production p
- Moving from one point to another on a production possibilities frontier implies: a. increasing the production of one good and decreasing the production of another. b. increasing the production of both goods. c. decreasing the production of both goods. d.
- Which one of the following would cause a rightward shift of the supply curve? (a) A new tax is imposed on production of goods. (b) Some firms that have been producing goods go out of business. (c) Firms producing goods find ways of lowering their producti
- 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
- When an economy is producing inside its production possibility frontier a. it is efficient so long as it is producing what people want. b. it must overcompensate by producing outside the curve to achieve efficiency. c. only technological advances will
- Increases in the prices of services due to improvement in its quality indicate a(n): a. decline in productivity. b. decline in real GDP. c. increase in output. d. decline in manufacturing output. e. increase in technological progress.
- Which one of the following would increase per-unit production cost and therefore shift the aggregate supply curve to the left? (A) a reduction in business taxes. (B) production bottlenecks occurring when producers near full plant capacity. (C) an increase
- Which of the following causes the production possibilities curve to shift to the right? a) A war. b) d and e. c) The development of a new technology that improves productivity. d) c and e. e) The discovery of oil reserves.
- Which of the following will not shift the supply curve to the right? A. The government offers a new subsidy. B. A better production technology is discovered. C. A major manufacturer goes out of business. D. The price of a key input drops.
- Which of the following does not expand economic growth? (a) New technology (b) Production facilities (c) Scarcity (d) Widen economic opportunities
- If there is an improvement in the level of technology used in the production of a good then: i. more output may be produced with a given amount of inputs compared to before the technological improveme
- 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
- Draw a production possibilities curve for a hypothetical economy producing capital goods and consumer goods. Suppose a major technological breakthrough occurs in the capital goods industry and the new technology is widely adopted only in this industry. Dr
- If a production process undergoes a technological improvement then A) a given amount of inputs will yield more output B) the short run production function (or total product curve) will rotate upward C) total variable cost and average variable cost will be
- All else equal, which of the following would cause an increase in output per effective worker? a. an increase in population b. an increase in technology c. a doubling of both capital and labor d. a doubling of capital and technology e. an increase in capi
- An increase in shifts the production function, and makes it possible to produce higher level of GDP with capital per hour worked. a. technology; down; the same amount of b. technology; up; the same am
- When an economy grows, its production possibilities frontier: a. shifts to the right. b. shifts to the left. c. shifts upward. d. shifts downward.
- A movement along the production possibilities frontier will result from? A) a change in the stock of capital B) none of the above. C) a change in human capital. D) technological change. E) a change in the labour force.
Explore our homework questions and answers library
Browse
by subject