d. maximum output combination. If an economy is producing at a point inside a production possibilities curve: A. the economy is efficient. 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. 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. When an economy is in a recession, it is operating inside the PPC. 7. Any point inside the production possibilities curve is a (an) a. efficient point. 9. C. productivity has declined. Outside the curve. When all these points of different combinations of production of the two goods are joined, they form a Production Possibility Curve. Opportunity cost is Lable a point G outside the curve. Label a point F inside the curve. 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. SURVEY . Find the combination of 2,000 WMD and 40,000 pounds of Food. b. at the top corner of the curve. the shape of the production possibilities curve illustrates the law of increasing cost. This curve represents a mere production possibility between a durable and a consumer good, FMCG--fast moving consumer good. ANS: c. While operating within the boundaries of the production possibilities curve, more of both goods can be attained if efficiency is improved. Opportunity costs are constant. Low on the curve. Inside the curve. d. outside the curve. Explain. D. society has chosen a different set of outputs. Tags: Question 3 . The PPC shows the maximum available possibilities which an economy can produce. 30 seconds . 1. e. inside the curve. A production possibilities curve … c. inefficient point. 89. c. at the bottom corner of the curve. B. productivity has increased. SURVEY . 88. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. When it is at full employment, it operates on the PPC. 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!! Why is this an inefficient point? Tags: Question 5 . 2. b. unfeasible point. Why is the point unattainable. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. Q. Label this point D. Show that it is inefficient by possibilities curve. !--Humor). Does this production possibilities curve reflect the law of increasing oppurtunity costs? Resources are being used very efficiently. 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. Why are points A through E all efficient points? During World War II, what was an opportunity cost of the decision to increase production of military goods? An output combination that is unobtainable with the current. Operation of the Economy on the PPC. A movement along the production possibilities curve would imply that: A. the labor force has grown. High on the curve. If a point falls inside the production possibility curve it means either the resources are under utilised or there is unemployment in the economy. A point inside a production possibilities curve indicates Resources are not being used efficiently. Using a production possibilities curve, unemployment is represented by a point located a. near the middle of the curve. The point on the PPC where the economy operates depends on how well the resources are utilised. 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