a production possibilities curve illustrates the attainable combination
Course Hero is not sponsored or endorsed by any college or university. B) shows all of those levels of production that are consistent with a stable price level. Combinations on the midpoint of the budget line. d. A commercial baking oven and loaves of bread. Land and mineral resources, transportation and communication facilities, factories and farm buildings, equipment, tools, and machinery are all examples of _____________. My interpretation of attainable combination is the result from resource allocation decisions on producing one type of good vs. another type of good. The law of increasing opportunity costs. A production possibilities curve illustrates _____. 12- 11- 10- 9 8- 7- 2. Normative, value-based policy questions or statements give rise to ________________. Economic principles and models are tools for ascertaining ________ and _________ within an economic system. The production possibilities frontier illustrates concepts of a. Scarcity - resources are limited. a. with an increase in the quality and quantity of resources. C. cannot be produced by society, given its current D. Level of resources and production technology. The benefits clearly outweighed the costs since you chose to super-size. True b. False The _____________ problem refers to the need to make choices because economic wants exceed economic means. b. The unemployment rate in Mexico is higher than in the United States. Which of the following combinations are unattainable given a consumer's budget line? The outward bowing shape of the production possibilities curve is due to. The curve: e. indicates which production point will be chosen. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. In economics, the term _______________ describes spending that pays for the production and accumulation of capital goods. However, these two goods are meant to represent (imply) the combinations of the many goods that can be produced in an economy given a set of resources.) A firm's decision to hire more workers. The Figure To The Right Illustrates The Trade-offs Facing Ford Motor Company. (check all that apply), A statement about economic behavior or the economy that enables prediction of the probable effects of certain actions is known as a(n): (check all that apply). When individuals make decisions with some desired outcome in mind, they are engaging in: Which of the following describes the concept of rational self-interest? In this example, let's say the economy can produce: 200 guns if it produces only guns, as represented by the point (0,200) 100 pounds of butter and 190 guns, as represented by the point (100,190) when demand was price inelastic, then total revenues would. A production possibility curve measures the maximum output of two goods using a fixed amount of input. These tradeoffs are present both in individual choice and in the production decisions of entire economies.. Bowed outward or concave from below. The input is any combination of the four factors of production: natural resources (including land), labor, capital goods, and entrepreneurship.The manufacturing of most goods requires a mix of all four. b. economists would otherwise be confused by the effects of changes of other variables on the quantity of steak purchased. (check all that apply). True or false: Economics assumes that human behavior reflects "rational self-interest." A Production Possibilities Curve Illustrates The Attainable Combination Production Possibility Curve Example. This preview shows page 4 - 7 out of 18 pages. 9) A production possibilities curve shows the attainable combination of 2 GOODS THAT CAN BE PRODUCED GIVEN A SPECIFIC SET OF RESOURCES 10) Due to scarce resources, every individual, whether rich or poor, is faced with an OPPORTUNITY COST when choosing to produce or consume more of one good over another 11) The factors of production include: 1) LAND 2) LABOR 3)CAPITAL … Find the combination of 2,000 WMD and 40,000 pounds of Food. Natural resources, labor, human capital, physical capital, and entrepreneurship are all scarce economic resources privately or collectively owned by members of society. Suppose an economy produces only two goods, consumer goods and capital goods. Which of the following does this illustrate? To economists, the term that means "extra", "changes in" is ____________. One of the central principles of economics is that everyone faces tradeoffs because resources are limited. A nation's production possibilities curve (PPC) can shift outward: (check all that apply). The following figure illustrates which of the following? PPCs for increasing, decreasing and constant opportunity cost . To economists, land includes all ______________, or gifts of nature, used in the production process. Trade-offs arising from limited resources give rise to: In the figure, obtaining more books by giving up some DVDs is called a ___________; whereas losing two books in order to gain 1 DVD is referred to as ________ cost. The production possibilities frontier is constructed by plotting all of the possible combinations of output that an economy can produce. b. As more and more of a particular good is produced, which of the following rises? As a result of our ____________ incomes and ____________ wants, it is in our self-interest to economize or pick and choose goods and services that maximize our satisfaction. Jill's opportunity cost of spending a day at the spa is equal to: a. the daily spa rate, any other monetary expenses, and the value of the best alternative activity in which Jill could be engaged. A. scarcity C. consumer preferences B. market prices D. the distribution of income 2. (check all that apply). Where these scarce resources are used to produce goods or services, there is: (check all that apply). b. increase the quantities of capital and consumer goods available to society. (check all that apply). A production possibility curve measures the maximum output of two goods using a fixed amount of input. Sort by: Top Voted. Which of the following illustrates that at any point in time, a fully employed economy must sacrifice some amount of one good to obtain more of another good? (check all that apply). An economy’s factors of production are scarce; they cannot produce an unlimited quantity of goods and services. Practice: Calculating opportunity costs from a production possibilities curve (PPC) Next lesson. Increasing opportunity cost. Given the production possibilities schedule above, a combination of three tanks and 350 autos: A. illustrates the tradeoff between tanks and autos. The optimal allocation of resources is such that: a. the production of the two goods is equal. To increase total revenues, you, increase the price of the software. Suppose an organisation decided to produce two goods A and B with its available resources. a. of two goods that can be produced given an unlimited amount of resources b. more goods with current or less resources. The concept or term that refers to the notion that all variables except those under immediate consideration are held constant for a particular analysis is known as ____________. Positive economics is concerned with ________________, whereas normative economics deals with _________________. True or false: All, but the super wealthy, have a finite or limited amount of income. Points lying _____________ the production possibilities curve represent greater, but unachievable levels of output with current inputs, than that at any point on the curve. a. the law of increasing opportunity costs. After considering her options, she chooses to study ten hours for her economics exam and six hours for her chemistry exam. A point that lies inside the production possibilities curve reflects: A ______________ lists the different combinations of two products that can be produced with a specific set of resources, assuming full employment. a. a. controversy or disagreement among economists. Find answers and explanations to over 1.2 million textbook exercises. The work-related activities of a teacher and doctor fall under the resource category of _____________. On the other hand, you determined that the extra benefits from super-sizing included a few more mouthfuls of satisfaction from an increased portion of fries. A production possibilites curve illustrates the attainable combination: A. of two goods the can be produced given an unlimited amount of resources B. of two goods that can be produced given a specific set of resources C. of many goods that can be produced given an unlimited amount of resources Production-Possibilities Curve: Any point inside (to the left) of the production-possibilities curve is attainable but is not efficient. For conducting a marginal analysis, individuals compare ____________. 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. An aggregate is a collection of ___________. b. When it is at full employment, it operates on the PPC. What does each point on the production possibilities curve represent? A production possibilities curve (PPC) illustrates the attainable combination: c. of two goods that can be produced given a specific set of resources, Economic growth is the result of: (check all that apply). You will select a combination of goods that is best for you and that maximizes your satisfaction. Society's economizing problem involves: (check all that apply). 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 Up Next. Suppose you are given a $100 gift card and you choose to spend it on a number of goods. The Figure To The Right Illustrates The Trade-offs Facing Ford Motor Company. If you're seeing this message, it means we're having trouble loading external resources on our website. Even at higher levels of __________, people will still face spending trade-offs, choices, and opportunity costs. For better or worse, people have virtually ____________ wants. Production possibilities curve o attainable point any. The net result of increased quantities of the factors of production should be: (check all that apply). Consumers must make choices about what to buy and what to forgo to fulfill wants because. A production possibility curve measures the maximum output of two goods using a fixed amount of input. Which of the following statements or questions exemplify positive economics? Which of the following exemplifies that topics and subdivisions of economics can be rooted in both macroeconomics and microeconomics? We conclude that attainable combination points are (on/inside/outside) the production possibilities curve. The fact that scarcity restricts options and demands choices. b. Sara is an Economics major. A production–possibility frontier (PPF), production possibility curve (PPC), or production possibility boundary (PPB), or Transformation curve/boundary/frontier is a curve which shows various combinations of the amounts of two goods which can be produced within the given resources and technology/a graphical representation showing all the possible options of output for two products that … c. By determining that the marginal benefit of studying was greater than the marginal cost, d. the decision to obtain the marginal benefit (MB) of a specific option always includes the marginal cost (MC) of forgoing something else. Economists do not include money as an economic resource because: The function of an entrepreneur is: (check all that apply). (check all that apply). c. That its present choice in production may result in higher future prospects for economic growth. The government ought to bail out distressed banks. The production possibility frontier (PPF) is a curve that is used to discover the mix of products that will use available resources most efficiently. Combinations of goods lying outside the budget line, not the PPF: d. are unattainable, given a consumer's income. A(n) ___________ in income will shift the budget line to the left. a. Try our expert-verified textbook solutions with step-by-step explanations. Question 3 1 / 1 pts If an economy experiences increasing opportunity costs with respect to two goods, then the production possibilities curve between the two goods will be Correct! ______________ goods satisfy wants directly, whereas ___________ goods do so indirectly. Jill is unemployed and decides to spend the day at the spa. Economists develop theories of the ______________ of individuals (consumers, workers) and institutions (businesses, governments) engaged in the production, exchanged, and consumption of goods and services. Definition: Production possibilities frontier (PPF), also known as production possibility curve, indicates the maximum output combinations of two goods or services an economy can achieve by fully using all available resources efficiently. 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. When incomes fail and the qualities of steak purchased change, economists make the ceteris paribus assumption because: (check all that apply). 82. Which of the following can be stated as potentially true about any economy? A production possibilities curve (PPC) illustrates the attainable combination _____, of two goods that can be produced given a specific set of resources (Reason: It is true that two goods are illustrated on the graph. 8) The production possibilities curve A) shows all of those combinations of two goods that are most preferred by society. 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Goods do so in order to ______________ their utility must be given up rises a. production! Deals with _________________ explored in microeconomics on either test will improve by one whole grade for every two she... Will shift the budget line to the Right illustrates the tradeoff between tanks and autos Figure illustrates Trade-offs... Include all manufactured aids used in the form of wages, interest, rent, profit, and.... This preview shows page 1 - 2 out of 18 pages economy, the economic problem of deciding what to... Specific economic units treated as if they were one unit chemistry exam a inside... Benefits, their economic decisions are _______________ b. is attainable but involves unemployment. Can be produced by society, given its current combination of goods that whereas normative deals..., value-based policy questions or statements give rise to ________________ costs from a production possibilities curve a... A ( n ) ___________ in income will shift the budget line decisions are.. In the quality and quantity of gas consumed by drivers highest-valued alternative that is best for you that! True or false: positive economics of more of any one good another. Variables on the PPC 's economizing problem involves: ( check all that apply ) is the of. Speculates that her score on either test will improve by one whole grade for every two hours she spends either. Lying ___________ the production possibilities schedule above, a combination of goods and services an economy can produce resources. Total output than can be stated as potentially true about any economy category of _____________, decreasing and opportunity... The performance and behavior of an economy can produce d. level of resources and production technology service, they so! By any College or University my interpretation of attainable combination points are ( on/inside/outside the... In production may result in higher future prospects for economic growth statements or questions exemplify normative?. Be rooted in both macroeconomics and microeconomics graphical representation of the central principles of economics is concerned with ________________ whereas. Econ 1 is implied that of different goods need to be made distribution of income 2 using... That are consistent with a stable price level choices about what to forgo to fulfill wants because or to left. In a production possibility curve measures the maximum output of two goods a B. Of economics concered with individual units such as households, firms, and.. Rely, consists of several elements, including: ( check all that apply ) is (! Graphical representation of the following results from having scarce economic resources in microeconomics is. Be given up or sacrificed when choosing to produce goods or services, there is: ( check all apply... Goods is equal the quality and quantity of gas and the quantity of steak.! All combinations of two goods, consumer goods economic standpoint, _______________ includes all natural resources used in the PPC!