Which of the following would most likely shift the production possibilities curve inward? a. An...
Question:
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 average number of hours worked per week as the labor force chooses to enjoy more leisure time
Production Possibility Curve:
Production Possibility Curve (PPC) depicts the best and possible combination of two goods that uses all the given resources and technology efficiently and effectively. It helps to get the solution of allocation of resources.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerOption D) is correct: a decrease in the average number of hours worked per week as the labor force chooses to enjoy more leisure time.
The decrease...
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
Production Possibilities Curve: Definition & Examples
from
Chapter 11 / Lesson 28
34K
Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.
Related to this 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 technol
- 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
- 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
- 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.
- 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
- Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if: A) the per-worker production function shifts downward. B) there is technological change. C) there continue to be decreases in capital per hour worked. D)
- 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
- Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if: a. there is technological change. b. the per-worker production function shifts downward. c. there continue to be decreases in capital per hour worked. d.
- 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
- 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
- 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
- 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.
- 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.
- 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
- 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
- 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
- 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
- Technological advancement is defined as: a. an increase in the labor to capital ratio in any production process. b. the increase in the quantity of inputs needed to produce a given quantity of output. c. the reduction in the quantity of inputs needed to
- 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 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
- 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
- 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
- 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
- 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
- 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.
- 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
- The increase in real GDP per hour of labor that results from an advance in technology makes labor [{Blank}] productive [{Blank}]. A. more; at all quantities of capital B. more; and capital less productive C. less; and capital more productive D more; onl
- A firm hires the number of capital and labor according to its productivity. The firm needs a combination of one unit of capital and two units of labor per hour to make ten units of output. The technology is such that an increase in labor has to be accompa
- The opportunity cost of producing capital is _______. (a) decreased current production of consumption goods (b) increased future production of consumption goods (c) the amount of roundabout production (d) abundant capital accumulation (e) the decreased am
- 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.
- 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
- Suppose there is an increase in technology that allows workers used in the production of good X to produce more of good X per hour they work. A result of this increase in technology will be (assume th
- Better ideas or technological knowledge causes A. neither the production function nor the investment function to shift upward. B. both the production function and the investment function to shift upward. C. the production function to shift upward. D. the
- When an economy faces diminishing returns: A) the slope of the per-worker production function becomes flatter as capital per hour worked increases. B) the per-worker production function shifts to the left. C) the per-worker production function shifts to t
- 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.
- 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.
- 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
- Which of the following options is correct? In the long-run, after investment increases, A. LRAS and the production possibilities curves shift. B. AD and SRAS shift. C. SRAS and the production possibilities curves shift. D. LRAS shifts. E. AD and the produ
- 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
- 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 economy experiences economic growth if: A.the resource base decreases. B.the production possibilities frontier shifts inwards. C.the number of workers decreases. D.the production possibilities frontier shifts outwards.
- An improvement in technology: A. is one way to shift the demand curve. B. always increases producers' profits. C. allows a producer to decrease output with the same amount of input. D. allows a producer to increase output with the same amount of input. E.
- If a 10% increase in both capital and labor causes output to increase by less than 10%, the production function is said to exhibit decreasing returns to scale. If it causes output to increase by more
- 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
- 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.
- 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
- Diminishing returns to capital implies that what diminishes as more capital is added? a. output b. the marginal product of capital c. the cost of producing goods and services d. technological knowledg
- The marginal product of capital is the increase in: A. the number of machines when one more unit of capital is added. B. output when one more unit of capital is added. C. employment when one more unit of capital is added. D. unemployment when one more uni
- If there is an increase in capital per worker, what will happen to the aggregate production function curve? What will technological progress do to the aggregate production function curve?
- A firm hires four workers and rents 10 capital units for an operating period. It produces 12,000 units. If it had doubled its use of labor and capital, production would have been 24,000 units. Does the firm have constant, increasing, or decreasing return
- In a Production Possibilities Curve depicting the trade-off between with capital goods vs. consumer goods, an economy choosing more capital goods and less consumption goods will, ceteris paribus: a. Be inefficient b. Grow slower c. Grow faster d. Not have
- What would cause a firm's production function to change? a. Expanding the size of the factories, b. Increasing the quantity of labor and capital, c. Increasing the quantity of capital, d. Increasing the quantity of labor, e. The adoption of new techno
- 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
- Key Concept: Economic growth 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
- Generally, opportunity costs increase and the production possibilities frontier bows outward. Why? a. Unemployment is inevitable. b. Resources are not equally useful in all activities. c. Technology is slow to change. d. Labor is scarcer than capital.
- The marginal product of capital _____ as additional units of capital are added, holding the labor force constant, causing the production function to become _____. a. increases; steeper b. increases; flatter c. decreases; steeper d. decreases; flatter
- 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
- A new production technology is perfected that allows auto manufacturers to build an automobile using half the labor hours formerly needed. As a result: a. the equilibrium quantity of automobiles increases and the price decreases. b. the equilibrium quanti
- 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
- Prices of labor (L) and capital hour (k) are 200 and 1000 prospectively. Which technology should be used by the firm in producing 25 units of an output? - Technology A : Q = 25, K = 6 , L = 13 - Technology B : Q = 25, K = 8, L = 7
- Economic growth would increase as a result of all of the following except: a) increase in labor productivity. b) introduction of new technology in the manufacturing sector. c) decrease in investment spending. d) new factory construction in the northern st
- 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
- 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
- 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
- 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
- Should the firm increase, decrease, or leave unchanged the amount of capital used in its production process, based on the following assumptions?
- Along a production possibilities curve showing capital and consumption goods production, which of the following pairs are being held as fixed? A.Unemployment and capital goods production. B.Technology and the number of resources. C.Composition of the e
- A firm is currently producing their profit maximizing quantity of 600 units of output using 150 hours of labor and 50 hours of capital. The marginal product of labor is 10 units of output per hour and
- 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
- When an economy sacrifices the production of consumption goods to produce more capital goods, we would expect that the production possibilities curve will: a. shift about in random fashion b. shift inward c. shift outward d. become a straight line
- 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
- Which of the following does not expand economic growth? A. Widen economic opportunities B. Scarcity C. New technology D. Production facilities
- Technological changes that increase productivity shift the A. production function forward. B. average total cost curve downward. C. marginal cost curve upward as output increases. D. all of the above
- The impact of an improvement in technology is that it: A. Increases supply as it reduces the cost of production by allowing producers to save on the use of inputs. B. Increases demand as it increases the cost of production by expanding the number of cho
- The production possibilities curve will shift outward, upward, and \ or, to the right when? A) corporate profits increase. B) Economic growth occurs. C) Resources are used more efficiently. D) there is a reduction in labour.
- 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
- 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
- An increase in the amount of capital per worker is called: a) capital deepening. b) marginal capital. c) per-worker production function. d) human capital.
- 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
- The production function for cups uses a variable amount of labor and a fixed a mount of capital to produce output. The production function exhibits diminishing returns to labor. Suppose the techonology in producing cups improves. Show how this will affect
- 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
- Which of the following does not expand economic growth? (a) New technology (b) Production facilities (c) Scarcity (d) Widen economic opportunities
- The bowed-out (concave) shape of a production possibilities frontier: a) is due to technological change. b) is due to capital accumulation. c) reflects the existence of decreasing opportunity cost. d) is due to the equal usefulness of resources in all act
- A firm has production function f(L,K)=2L+4K. Then, if the firm substitutes 2 units of labor WITH one unit of capital? a. Production increases b. The Marginal product of labor decreases c. The Marg
- A firm increases the number of workers it hires from 50 to 52, and as a result, output increases from 100 to 110. Each of the additional units of output can be sold for $2. What is the marginal revenue product of the 52nd worker? A. 2 B. 5 C. 10 D. 20 E.
- 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.
- 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
- A productivity increase would be illustrated by a ____ shift in the production function. a. downward. b. leftward. c. upward. d. rightward.
- 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
- The production process of the firm you manage uses labor and capital. How does the long-run expansion path change when the wage increases while the rental rate of capital stays constant? Draw a diagra
- 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
- 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
- A technological innovation that reduces a firm's cost of producing additional units of output will lead to: a. a decrease in the firm's supply. b. an increase in the quantity supplied by the firm, but no change in the firm's supply. c. a decrease in 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
- World output of goods and services increases with specialization because: A. the world's resources are used more efficiently. B. the production possibilities curve shifts outward for each country. C. the workers in each country work fewer hours per week.
- Improvements in technology will shift an economy's production possibilities curve a. inward, then outward. b. outward, then inward. c. outward. d. inward.
Explore our homework questions and answers library
Browse
by subject