2018/2019. Which of the following statements is false? Mutually advantageous trade will have India producing and exporting the game while the United States will specialize in producing something else. Insufficient resources for a second product mean a vertical/ho… According to marginal analysis, the farmer should add fertilizer if it costs less than: In economics, the term "marginal" refers to: When deciding whether to buy a second car, marginal analysis indicates that the purchaser should compare the: d.additional benefits of the second car with the additional cost of the second car. Point A B. (Check al that apply) A. The curve: a. indicates the combinations of goods and services that can be produced with given technology b. indicates the efficient production points c. indicates the non-efficient production points d. indicates the feasible (attainable) and non-feasible production points Hence, all points in PPF are efficient and a movement between one efficient point to another, means that more of one product is … Inefficient and Infeasible Points. The production possibilities curve shows that: a.some of one good must be given up to get more of another good in an economy that is oeprating efficiently. Get step-by-step explanations, verified by experts. A) attainable. Points that lie to the right of the production possibilities curve are said to be unattainable because they cannot be produced using currently available resources. The productive resources of the community can be used for the production of various alternative goods. Click here to get an answer to your question ️ The attainable production points on a production possibility curve are 1. c. a shift in consumer preferences that causes expansion in the output of one product and a decline in output of other products. b. positive statements offer descriptions of the way things are, where as normative statements offer opinions on how things ought to be. D) allocatively efficient. Both these points lie on the curve and neither outside of it, nor inside of it. Of factors which affect any economy's production potential, the best two listed below are: If an economy is producing at full employment, it means that: c. the economy is producing along its production possibilities curve. Which of the following transactions takes place in the markets for the factors of production in the circular-flow diagram? the production possibilities frontier is the boundary 17 in a production possibilities frontier diagram the attainable production points are shown as 18 in the production possibilities frontier model an unattainable point lies a only on the production possibilities frontier itself b only inside the production possibilities frontier c only outside the production possibilities frontier any point beyond the PPF is unattainable … While a point inside the production possibilities curve indicates that both more laptops and mobile phones can be produced, a point on the curve indicates that it is not possible to increase the production of one good without decreasing the production of the other good. Which of the following is a normative economic statement? The _____ production points on a production possibility curve are the points along and inside the production possibility frontier. Join now. Points inside the frontier are attainable, but do not utilize society's resources efficiently. The Secretary's statement is a(n) _____ economic statement, and the labor head's statement is a(n) _____ economic statement. The points along the production possibilities frontier. Three basic decisions must be made by all economies. d. a nation should specialize in producing a good in which it has a comparative advantage, In a Mexican factory, each worker can produce 1/8 of a vase or 1/16 of a statue per hour. Microeconomics 1 (ECON1101) Academic year. The highest point on the curve is when you only produce one good, on the y-axis, and zero of the other, on the x-axis. Comparative Advantage and the Basis for Trade Revision Questions Question 1 a What is the production possibility curve and what does it reflect b With this in. The point on the curve states how much or amount of each good is to produced when the resources are shifted or moved from making more of one good or less of the other one. D) the points along and inside the production The points that lie inside the PPC means that the actual production is falling short of its capabilities and there is a wastage or inefficient utilization of resources. Along a production possibilities curve showing capital and consumption goods production, which of the following pairs are being held fixed? Which of the following would be least likely to cause the production possibilities curve to shift outward? ?+++****, What economic growth is and how present choices, determine future production possibilities, Unemployment, Productive Inefficiency, and the Production, A point below the PPC represents unemployment or failure to, achieve production efficiency, by realizing full employment and, product efficiency the economy could begin to operate on the, Economic Growth and the Production Possibility Curve, When Economic growth occurs the PPC curve increases to the, upward right-hand side, into the previously unattainable, Images explain two possibilities one with-out growth and one, expressed both variables increasing at the, same time, represented as a line from bottom left corner to top, Inverse Relationship (indirect relationship). If it efficiently utilized all of its resources, then it will produce some combination of forks and spoons that sit on the production possibilities curve. This question has been solved Entrepreneurs try to maximize profit or minimize loss. The production possibilities curve demonstrates the basic economic principle that: d. to produce more of any one thing, assuming full employment, the economy must produce less of something else. The points inside and on the PPF are attainable for the firm. Answered The attainable production points on a production possibility curve are 1 The right of private persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other, Businesses can buy and sell as they choose, Owners can use or sell property as they choose.