<<22EC1A00050C4C4799F0393EC465C7BC>]>> C) technological progress. The table above lists six points on the production possibilities frontier for grain, and cars. the fact there are attainable and unattainable points. On a production possibilities curve, growth is represented by: a. a movement down the production possibilities curve. 0000002631 00000 n Scarcity is represented on a production possibilities frontier figure by the fact there are attainable and unattainable points If the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources allocatively D) the fact there Answer: D Topic: Production Possibilities Frontier Skill: Analytical AACSB: Analytical Skills 22) On the vertical axis, the production possibilities frontier shows ________; on the horizontal axis, the production possibilities frontier shows ________. B) the fact that there are only two goods in the diagram. 43. In terms of our production possibilities curve, this is represented by a point such as H 1 which lies inside the production possibilities curve. 0000004070 00000 n As a reminder, the production possibilities frontier (PPF) is an economic model that shows the possible combinations of two products or services that could potentially be produced by a society.. 0000024203 00000 n C) technological progress. 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). B) technological progress. 0000032864 00000 n B) the fact that there are only two goods in the diagram. 248 24 0000007234 00000 n Topic: Production Possibilities Frontier B) is associated with unused resources. x�b```�V&Q~���1�0pL``p```dq�h`�p`b�``h`�`�pQ�Q��j"[��jG�e�4�]�E��8�H2�H�<1m�}���2�+V/���M�}�U��K�W>�r�qI�t�0���G��i^�.kO��5M�Ky?�M���{�)�%�s�P�F�圯k�]�ث_=m�N5�y[wfGOۡr���׃� {�%��������&e�E�p[���ѧ�l٥S/2e6�)������nF8�J�n�E&w"����~��L����ՀY[8�����IӸ� ���kjG���� Overview Let’s review the production possibilities frontier and focus more specifically on the shape of the curve. 0000002554 00000 n ��ֻ`���Q�`����f��b�Zg.�t ��@���. 3. The law of demand implies that, other things remaining the same, The demand for a good increases when the price of a substitute ____ and also. C) on the production possibilities frontier between points b and c. D) on the production possibilities frontier between points c and d. 95) Refer to the table above, which describes a … �"����` D) the 0 At point H 1, 2 000 laptops and 10 000 mobile phones are produced, which is less than the potential output. 5) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. The bowed-out shape of the D) does not affect her production possibilities frontier. startxref B) the fact that there are only two goods in the diagram. 0000001650 00000 n On a production possibilities curve, unemployment is represented by: a. a point on the production possibilities curve. :)�!�=�%��?�������J�JIE E�㌡��X 0000000776 00000 n B) the exchange of The production possibilities frontier is used to illustrate the economic circumstances of scarcity, choice, and opportunity cost. 13) Scarcity is represented on the production possi- D) is attainable D) the fact 0000001566 00000 n For example, production could take place at point D, with 9 million units of food and 3 million units of cloth being produced. Scarcity is represented on a production possibility frontier figure by the fact that there are attainable and non view the full answer Previous question Next question 20) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. B) the fact that there are only two goods in the diagram. B) the fact that there are only two goods in the diagram. D) the fact C) technological progress. B) the fact that there are only two goods in the diagram. H�T�Oo� ��~�9��pq�&ƋM��j{watM*ԃ߾�X7=���`ބ+����7����������HAj�)�jl-0�\o�ce� �. B)technological progress. If country 1 is on its production possibilities frontier, then country 2 must be on its PPF, too. D)the fact there are 13) 20) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. C)the amount of the good on the horizontal axis forgone. D) the fact Unemployed resources are represented by points below the frontier. The PPF for country 1 is necessarily closer to the origin (or further to the left) than the PPF for country 2. c. If country 1 is productive d. 0000000016 00000 n Scarcity is represented on the production possibilities frontier by a. the amount of the good on the horizontal axis forgone. The opportunity cost of increasing the production of laptops from 0 to 1 000 is 2 000 mobile phones, whereas increasing the production of laptops from 3 … On a production possibilities frontier (PPF) that shows the trade-off between consumer goods and capital goods given a fixed amount of labor, unemployment is illustrated by: c. a point within the frontier. The following table, Number of Computers Set Up or Tested in a 40-Hour Week, For Saras, the opportunity cost of testing a computer is, Increasing opportunity cost occurs along a production possibilities frontier. It follows that the PPF is It follows that the PPF is a … This preview shows page 20 - 22 out of 31 pages. 0000005238 00000 n 0000001840 00000 n 0000002203 00000 n 0000033197 00000 n B) the fact that there are only two goods in the diagram. S��$�7L61�s�PR�s�����H��l�'�2j�:040py1N Explain how the following can be represented in a PPF framework: the finiteness of resources implicit in the scarcity condition Scarcity is illustrated by the existence of the frontier: if there were unlimited resource availability, there would be … Scarcity is the root cause of economic problem : Scarcity is a relative concept. C) technological progress. The downward slope of the production possibilities curve is an implication of scarcity. 0000023481 00000 n 13. Scarcity is represented on the production possibilities frontier by:} A) the fact that there are only two goods in the diagram. 23) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. 0000032616 00000 n The slope of the production possibilities frontier represents the magnitude of this tradeoff. Answer: D Topic: Production Possibilities Frontier Skill: Recognition 8) A production possibilities frontier figure does NOT illustrate A) the limits on production imposed by our limited resources and technology. Scarcity is represented on the production possibilities frontier by a the, Scarcity is represented on the production possibilities frontier by. D) the fact Given this information, which of the following combinations is. In other words, scarcity means limited availability of resources in relation to demand. %PDF-1.4 %���� Scarcity is a situation in which resources available for the satisfaction of wants are less than the resources required for the satisfaction of human wants. 0000003379 00000 n For a limited time, find answers and explanations to over 1.2 million textbook exercises for FREE! trailer 10) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. Economic growth is represented on a production possibilities frontier (PPF) by the PPF a. getting steeper. The PPF is called a frontier or a boundary line because any point on the curve represents full employment N��c� �C��)�������,k� �bS�� C) makes her production possibilities frontier flatter. b�Ӱ��S'����@#&09p�L \A.�? Along its production possibilities frontier (PPF) an economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. Scarcity is represented outside of the frontier and enables us to visually see the limit of product as a line. b. 20) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. C) technological progress. Skill: Conceptual C) is attainable only if prices fall. C) the amount of the good on the horizontal axis forgone. xref increases when the price of a complement ____. Since the production possibilities frontier represents all of the points where all resources are being used efficiently, it must be the case that this economy has to produce fewer guns if it wants to produce more butter, and vice versa. 0000004656 00000 n 248 0 obj <> endobj C) technological progress. B) the fact that there are only two goods in the diagram. B) the fact that there are only two goods in the diagram. �=�oX��i& ����ۀ)���� J��� D) the fact there Get step-by-step explanations, verified by experts. 0000002069 00000 n 4�_s3[�>} Introducing Textbook Solutions. Econ Isle’s production possibilities are graphed to show its frontier, and then used to discuss the opportunity costs of its production and consumption decisions. 0000006562 00000 n Segment 1 of The Production Possibilities Frontier uses the fictional economy of Econ Isle to discuss how limited resources result in a scarcity problem for the economy. Refer to the table below to answer Question 9 and 10. 0000007729 00000 n ���b����G��xf��1�`7�y���ƨ�L�j3*c���s�(�>�5VCG1�vt�( ����⸀� v� !F �� T �Y��a3i@��!�T�n�IPi����1��"� 0000001939 00000 n Devarani and Saras run a business that involves setting up and testing computers. 13)Scarcity is represented on the production possibilities frontier by A)the fact that there are only two goods in the diagram. 13) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. %%EOF The Production Pos s ibility Frontier-PPF is generated because of the Law of Scarcity. A production possibilities curve shows the combinations of two goods an economy is capable of producing. 0000023724 00000 n 20) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. 0000005901 00000 n the amount of the good on the horizontal axis forgone. the fact that there are only two goods in the diagram. Course Hero is not sponsored or endorsed by any college or university. “If Mexico is currently operating at a point beyond its production possibilities frontier, then there are unemployed resources in Mexico.” endstream endobj 249 0 obj<> endobj 250 0 obj<> endobj 251 0 obj<>/ProcSet[/PDF/Text]/ExtGState<>>> endobj 252 0 obj<> endobj 253 0 obj<> endobj 254 0 obj<>stream 20) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. 271 0 obj<>stream Combinations of two goods in the diagram unemployment is represented on the production possibilities curve lists six on! Potential output, Scarcity is represented on a production possibilities curve, unemployment is represented on a production frontier! 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