Find the combination of 2,000 WMD and 40,000 pounds of Food. 7. ANS: c. While operating within the boundaries of the production possibilities curve, more of both goods can be attained if efficiency is improved. When all these points of different combinations of production of the two goods are joined, they form a Production Possibility Curve. SURVEY . The PPC shows the maximum available possibilities which an economy can produce. B. productivity has increased. If an economy is producing at a point inside a production possibilities curve: A. the economy is efficient. D. society has chosen a different set of outputs. When an economy is in a recession, it is operating inside the PPC. This curve represents a mere production possibility between a durable and a consumer good, FMCG--fast moving consumer good. Why is the point unattainable. In this video, Sal explains how the production possibilities curve model can be used to illustrate changes in a country's actual and potential level of output. A point inside of the production possibilities curve is inefficient because it is possible to produce more of one or both goods without opportunity cost. 2. c. inefficient point. A movement along the production possibilities curve would imply that: A. the labor force has grown. the shape of the production possibilities curve illustrates the law of increasing cost. !--Humor). 1. possibilities curve. Why is this an inefficient point? If a point falls inside the production possibility curve it means either the resources are under utilised or there is unemployment in the economy. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. b. at the top corner of the curve. Tags: Question 5 . Does this production possibilities curve reflect the law of increasing oppurtunity costs? Label this point D. Show that it is inefficient by Opportunity cost is e. inside the curve. When it is at full employment, it operates on the PPC. If an economy is operating at a point inside the production possibilities curve (a) its resources are being wasted (b) the curve will begin to shift inward (c) the curve will begin to shift outward’ (d) this is a trick question because an economy cannot produce at a point inside the curve. Using a production possibilities curve, unemployment is represented by a point located a. near the middle of the curve. 30 seconds . d. maximum output combination. Why are points A through E all efficient points? A point inside a production possibilities curve indicates Resources are not being used efficiently. The point on the PPC where the economy operates depends on how well the resources are utilised. Explain. Production possibility curve shows the different combinations of the production of two commodities that can be achieved in an economy given the resources and technology which are to be fully utilized. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. Any point inside the production possibilities curve is a (an) a. efficient point. At the given points, it is necessary to go through the curve in determining the answers for your question (and this means that you have to do your ground work on curves!! Outside the curve. C. productivity has declined. Opportunity costs are constant. 89. An output combination that is unobtainable with the current. Lable a point G outside the curve. Q. c. at the bottom corner of the curve. d. outside the curve. Resources are being used very efficiently. Tags: Question 3 . 9. SURVEY . Label a point F inside the curve. Low on the curve. 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