B) a market economy is more efficient in producing goods and services than is a centrally planned economy. From a microeconomics standpoint, a firm that operates efficiently: labor and capital, which are scarce in Economy A. C)the limits on production imposed by our limited resources and technology. The PPF is downward sloping because resources must be taken away from the production of one good in order to produce more of the other good. What is the opportunity cost of going to college this​ term, assuming that your room and board expenses would be the same even if you did not go to​ college? Cassie has just spent $800 purchasing, cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. D)opportunity The production possibilities frontier model shows that. Cassie's Quilts alters, reconstructs and restores heirloom quilts. Explain your answers briefly. 7) The production possibilities frontier assumes all of the following except A) labor, capital, land and natural resources are fixed in quantity ) the economy produces only two products. (A B C graph) Point C. A production possibilities frontier with a _____ shape indicates increasing opportunity costs as more and more of one good is produced. through an increase in supplies of factors of production. the ability to produce a good or service at a lower opportunity cost than any other producer. 102. Which of the following is a factor of​ production? B)the exchange of one good or service for another. D. the economy produces only two products. 1. outline four measures that may be taken to conserve forests in Kenya (4mks) 2. The production possibilities frontier model assumes the economy produces only two products On the diagram, Point A is inefficient in that not all resources are being used. For each watch that Switzerland​ produces, it gives up the opportunity to make 50 pounds of chocolate. What is the opportunity cost of buying a hand-rolled cigar? The production possibilities frontier can be used to illustrate all of the following concepts, except one. D) the level of technology is fixed and unchanging. The production possibilities curve is also called the PPF or the production possibilities frontier. 1.The production possibilities frontier can be used to demonstrate which of the following? The production possibilities frontier shows the _____ combinations of two products that may be produced in a particular time period with available resources . every choice involves an opportunity cost, scarcity is central to the study of economics bc it implies that, Economists use the word "marginal" to mean an extra or additional benefit or cost of a decision. D) the points outside the production possibilities frontier. Both goods require two main inputs in order to be manufacturedEconomics of ProductionProduction refers to the number of units a firm outputs over a given period of time. 2 rabbits and 240 berries. Q2. B) the economy produces only two products. Search. Figure 2 Zane has just spent $125 purchasing a 1920s era weather vane which he expects to restore and sell for $500 once the work is completed. he should finish the restoration and then sell the weather vane. !1 Q1. calculate the percentage change in toothpaste consumption. In this lesson summary, review the key concepts, key terms, and key graphs Question 1 3 out of 3 points The production possibilities frontier model assumes all of the following except Answer Selected Answer: C. Any level of the two products that the economy produces is currently possible. Maximum attainable. c. labor, capital, land and natural resources are fixed in quantity. 6) The production possibilities frontier assumes all of the following except A) labor, capital, land and natural resources are fixed in quantity. C) economic growth can … The​ ________ production points on a production possibilities frontier are the points along and inside the production possibilities frontier. Why are imperfectly competitive markets inefficient? 2.2 The Production Possibilities Frontier and Social Choices 2.3 Confronting Objections to the Economic Approach Chapter 3. 5) The production possibilities frontier model shows that A) if consumers decide to buy more of a product its price will increase. In this diagram AF is the production possibility curve, also called or the production possibility frontier, which shows the various combinations of the two goods which the economy can produce with a given amount of resources. production levels, the productions possibilities frontier is (A) concave to the origin. In this example, let's say the economy can produce: 200 guns if it produces only guns, as represented by the point (0,200) 100 pounds of butter and 190 guns, as represented by the point (100,190) 250 pounds of butter and 150 guns, as represented by … The following graph shows the production possibilities frontier for a particular country’s economy. (a) The government decides to shorten the time period for unemployed w, Evaluate the following statements.True/False/It Depends? Which one of the following is not true of the production possibilities frontier (PPF)? It follows that the production possibility frontier (PPF) is a. a downward-sloping straight line. D)makes her production possibilities frontier steeper. Answer: C 20) When moving along the production possibilities frontier, opportunity cost is measured as the Answer: B Chapter 3 Demand and Supply 1) The relative price of a good is Answer: A 2) All of the following statements are The following diagram (21.2) illustrates the production possibilities set out in the above table. The production possibility frontier assumes that production is operating at a maximum amount of productive efficiency. C) any level of the two products that the scarcity refers to the situation in which, economics is the study of the ______ people make to attain their goals, given their ____ resources, a group of buyers and sellers of a product and the arrangement by which they come together to trade, the banks must have weighed the cost of installing bandit barriers against the benefits and decided that they have "no interest in ever putting in the barriers", In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times. 10) The production possibilities frontier model assumes all of the following except a. the economy produces only two products. D) all possible production of capital goods Answer: B Topic: Production Possibilities Frontier Skill: Conceptual 7) The production possibilities frontier itself shows A) the maximum amount of resources available at any given time. the maximum attainable combinations of two products that may be produced in a particular time period with available resources. Therefore, the point on the PPF curve shows that all the resources are utilized efficiently. bowed outward. C) any l D) the level of technology is fixed and The production possibilities frontier model shows that if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good. _____ is (are) unattainable with current resources. The production possibilities frontier is used to illustrate the economic circumstances of scarcity, choice, and opportunity cost. C) any l D) the level of technology is fixed and unchanging. C. a government program is instituted that encourages college education. Why? D) the level of … a. the economy produces only two products. The production possibilities frontier is constructed by plotting all of the possible combinations of output that an economy can produce. All of the following are true for inflation EXCEPT that: those on a fixed income lose purchasing power during inflationary periods. What is his marginal benefit if he sells the weather vane without restoring it? A] Under perfect capital markets, investor's choice between alt. Demand and Supply Introduction to Demand and Supply 3.1 Demand, Supply, and Equilibrium in 3.2 C) any level of the two products that the economy produces is currently possible. The production possibilities frontier model assumes all of the following except _____ A. any level of the two products that the economy produces is currently possible. Production possibility frontier (PPF) shows the combination of two goods which a nation can produce with the help of given technology,employment and other resources. In … If Resource Use Was Improved, The Economy Could Move Within The Production Possibilities Frontier. b. the level of technology is fi xed and unchanging. A production possibilities frontier with a​ ________ shape indicates increasing opportunity costs as more and more of one good is produced. Economists assume that rational people do all of the following except a. use all available information as … The production possibilities frontier model assumes all of the following except a. the economy produces only two products. b. the level of technology is fixed and unchanged. If society decides it wants more of one good and​ ________, then it has to give up some of another good and incur some opportunity costs. Suppose an excise tax of $1 is imposed on every case of beer sold and sellers are responsible for paying this tax. Q3. 12. A) labor, capital, land and natural resources are fixed in quantity. 11) 12)On the vertical axis, the production possibilities frontier shows _____; on the horizontal axis, the production possibilities frontier … which of the following is macroeconomics question? How can inefficiency occur in a perfectly competitive market? 10) The production possibilities frontier model assumes all of the following except a. the economy produces only two products. C. 13. any level of the two products that the economy produces is currently possible. Assume that the resources best suited to producing a particular service are preferentially used in the production of that service and that as the economy moves down along the production possibilities frontier, one worker at a time is transferred from mowing lawns to washing cars. C (the janitor at the local elementary school). C. the level of technology is fixed and unchanging. ADVERTISEMENTS: The Production Possibilities Curve: Assumption, Uses or Application! The unattainable points in a production possibilities diagram are the points outside the production possibilities frontier. B) the economy produces only two products. The production possibility curve is based on the following Assumptions: (1) Only two goods X (consumer goods) and Y (capital goods) are produced in different proportions in the economy. b. the level of technology is fixed and unchanging. As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. Assume that Greg and Melissa trade 60 biscuits for 60 cookies after they have completely specialized in producing the good in which they have a comparative advantage. It notes what the country can do, as opposed to what it actually does. (i) The best tradeoffs that individuals and societies should make (ii) The tradeoffs forced on individuals and societies because of scarcity (iii) The wealth maximizing output combination that an individual or society should choose . A. scarcity. c. labor, capital, land and natural resources are fi xed in quantity. When you purchase a new surfboard you do so in the _____, purchase final goods and services in the product market, A (Producers are buyers in the factors market.). Where d, (a) If trade occurs between Francia and Galacia, which nation should export what product? A (any level of the two products that the economy produces is currently possible), The production possibilities frontier model assumes all of the following except ______. The production possibilities frontier model assumes all of the following except... a. labor, capital, land and natural resources are fixed in quantity. B To describe the concept of the production possibilities frontier, assume that we live on an island that has only two cities (Lake and Desert), and two industries (cars and airplanes). The principle of​ ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up. B) the points along the production possibilities frontier C) the points of the horizontal and vertical intercepts. B) a market economy is more efficient in producing goods and services than is a centrally planned economy. The frontier’s bowed … Consider Economy A, which only produces two goods (for simplicity): potatoes and carrots. The production possibilities frontier shows. The police were surprised the bank did not take their advice. The four key assumptions underlying production possibilities analysis are: (1) resources are used to produce one or both of only two goods, (2) the quantities of the resources do not change, (3) technology and production techniques do not change, and (4) resources are used in a technically efficient way. Suppose six months ago, its sales amounted to $452,000, what is the value of its sales today? The production possibilities frontier model assumes all of the following except any level of the two products that the economy produces is currently possible. c. labor, capital, land and natural resources Thus, the Production-Possibilities for Economy A would look like this: Here, we can see the “frontier” graphically. Question 1 3 out of 3 points The production possibilities frontier model assumes all of the following except Answer Selected Answer: C. Any level of the two products that the economy produces is currently possible. The production possibilities frontier model assumes all of the following except. Select one: a. Since human wants are unlimited and the means to satisfy them are limited, every society is faced with the fundamental problem of choosing and allocating its scarce resources among alternative uses. After having spent $125, Zane realizes that he will need to spend an additional $200 on materials to complete the restoration. All choices along the curve shows production efficiency of both goods. if the price of milk was $1.25 a gallon and it is now $2.25 a gallon, what is the percentage change in price? The production possibilities frontier, or PPF, shows the productive capabilities of an economy when all resources are used efficiently. Please help!! It also assumes that the production of any one commodity will only increase if the production of another commodity decreases because of finite resources. ANSWER: a. As on PPF, the economy is at full employment, an increase in unemployment will not shift the PPF outward. c. labor, capital, land and natural resources are fi xed in quantity. B) any level of the two products that the economy produces is currently possible. A production possibilities curve illustrates:? ADVERTISEMENTS: (3) The supplies of factors are fixed. Course Hero is not sponsored or endorsed by any college or university. They've told our detectives they have no interest in ever putting in the barriers. (B) convex to the origin. The production possibilities frontier, or PPF, shows the productive capabilities of an economy when all resources are used efficiently. The production possibilities frontier model assumes all of the following except. According to a deputy commissioner of police, "Commerce does very little of what we recommend. b. evel of the two products that the economy produces is currently possible. 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