Find the combination of 2,000 WMD and 40,000 pounds of Food. … Hence, all points in PPF are efficient and a movement between one efficient point to another, means that more of one product is produced … Production possibilities curve is a graphical representation of a combination of two goods that a country can produce with a given amount of resources. B. attainable, but the economy is inefficient. C attainable but productive inefficient. Production Possibilities A production possibility frontier is used to illustrate the concepts of opportunity cost, trade-offs and also show the effects of economic growth. (Great! B) unattainable. STRAIGHT LINE PPF AND CONSTANT OPPORTUNITY … The production possibility curve is also called transformation curve, because when we move from one position to another, we are really transforming one good into another by shifting resources from one use to another. Label this point D. Show that it is inefficient by shading all of the attainable combinations that show that more of one or both goods can be attained. Production Possibility Frontier (PPF or PPC) PPF is the curve that shows the best (maximum) combinations of two outputs that an economy can produce given three assumptions: 1) Technology is fixed; 2) Resources are fixed; and 3) Resources are used at their fullest. The only way this economy can produce more consumer goods is by producing less military goods, or in other words giving up some production of military goods. _____ 8. Points within the curve show when a country’s resources are not being fully utilised The opportunity cost of producing consumer goods is increasing as we produce more of it. The points on the production possibility curve show the efficient utilization of resources. C) productively efficient. This is when an economy could produce more of both goods (i.e. The production possibilities frontier illustrates concepts of a. Scarcity - resources are limited. 86. 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. Question 2. Moving from B to C, the economy is producing another 40 consumer goods (80 in total) and is giving up an additional 60 military goods. The points inside and on the PPF are attainable for the firm. attainable, but the economy is inefficient. chap 2 econ flashcards start studying chap 2 econ learn vocabulary terms and more with flashcards games and other study tools the unattainable points in a production possibilities best answer a the points outside the ppf the points inside the ppf on the ppf and along the axis are all attainable Choice - choices in the production of different goods need to be made. If the price of the product increases, from $5 to $6 because of a decrease in supply, total revenue. Production-Possibilities Curve: Any point inside (to the left) of the production-possibilities curve is attainable but is not efficient. Chap 2 econ flashcards start studying chap 2 econ learn vocabulary terms and more with flashcards games and other study tools the unattainable points in a production possibilities best answer a the points outside the ppf the points inside the ppf on the ppf and along the axis are all attainable. Every choice the society/individual makes has an opportunity cost – to get more of one … unattainable and the economy is efficient Instructor Explanation: A point inside the production possibility curve doesn't use all the resources that we have available to us for production, in other words, it … If demand is represented by columns (3). Any point that lies either on the production possibilities curve or to the left of it is said to be an attainable point: it can be produced with currently available resources. … BMW constructs a new assembly plant in South Carolina. Any point inside the curve, such as point F, indicates unemployment of resources or inefficient use of resources. 9. Moving from point A to B, B to C, and C to D, shows a trade-off between military goods and consumer goods. To illustrate this, use the mouse arrow to point out unemployment as all points, including L, that lie INSIDE this curve for the production of crab puffs and storage sheds. Producing one good always creates a trade off over producing another good. The production possibility curve: … Points inside the production possibility curve indicates that the society concerned is not making full and efficient use of its resources and consequently fewer needs and wants are satisfied than is possible. D. country 1 is efficient and country 2 is inefficient. 15) 16)A point inside a production possibilities frontier Production-Possibility Frontier delineates the maximum amount/quantities of outputs (goods/services) an economy can achieve, given fixed resources (factors of production) and fixed technological progress.Points that lie either on or below the production possibilities frontier/curve are possible/attainable: the quantities can be produced with currently available resources and technology. On the other hand, combinations of output that lie outside the production possibilities frontier represent infeasible points, since the economy doesn't … C. country 1 has a bigger population than country 2. Production Possibilities Curve 1 Production Possibilities Curve Answers Directions: ... We conclude that attainable combination points are (on/inside/outside) the production possibilities curve. Points Inside. Points inside the frontier are attainable, but do not utilize society's resources efficiently. (A) inefficient. In fact B is better! A point inside the production possibilities curve represents a combination of goods that is (A) inefficient. Six new firms enter the plastics industry. a point inside the production possibilities frontier is. Any point inside (to the left) of the production-possibilities curve is attainable but is not efficient. These points are attainable (e.g., point U), but they are not using the resources at the fullest. D. unattainable and the economy is efficient. Attainable and Unattainable Production Possibilities frontier 3,000 C B Quantity of Computers Produced A 0 03/03/14 Quantity of Cars Produced All points on or inside the frontier are attainable Point A is attainable, so is point B. D. with points on and outside the production possibilities frontier. 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