Outside the curve. Tags: Question 5 . 88. C. productivity has declined. The PPC shows the maximum available possibilities which an economy can produce. SURVEY . Explain. 30 seconds . Why is this an inefficient point? High on the curve. 2. Opportunity costs are constant. SURVEY . When it is at full employment, it operates on the PPC. Operation of the Economy on the PPC. ANS: c. While operating within the boundaries of the production possibilities curve, more of both goods can be attained if efficiency is improved. Label a point F inside the curve. c. at the bottom corner of the curve. c. inefficient point. Q. A production possibilities curve … A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. 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. the shape of the production possibilities curve illustrates the law of increasing cost. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. Does this production possibilities curve reflect the law of increasing oppurtunity costs? d. outside the curve. Low on the curve. A movement along the production possibilities curve would imply that: A. the labor force has grown. Inside the curve. Why are points A through E all efficient points? 7. 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. possibilities curve. 9. !--Humor). 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!! Tags: Question 3 . When an economy is in a recession, it is operating inside the PPC. 89. Label this point D. Show that it is inefficient by During World War II, what was an opportunity cost of the decision to increase production of military goods? Find the combination of 2,000 WMD and 40,000 pounds of Food. B. productivity has increased. Lable a point G outside the curve. Any point inside the production possibilities curve is a (an) a. efficient point. b. unfeasible point. When all these points of different combinations of production of the two goods are joined, they form a Production Possibility Curve. The point on the PPC where the economy operates depends on how well the resources are utilised. This curve represents a mere production possibility between a durable and a consumer good, FMCG--fast moving consumer good. d. maximum output combination. Using a production possibilities curve, unemployment is represented by a point located a. near the middle of the curve. D. society has chosen a different set of outputs. If an economy is producing at a point inside a production possibilities curve: A. the economy is efficient. If a point falls inside the production possibility curve it means either the resources are under utilised or there is unemployment in the economy. Resources are being used very efficiently. Opportunity cost is Why is the point unattainable. 1. 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