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 .
What are the points that are attainable in the production possibility frontier?
All points inside PPF are inefficient points. These points are attainable (e.g., point U ), but they are not using the resources at the fullest. At point U, if technology or resources are used at full capacity, the economy could be at point B or C, meaning more would be produced.
Which production point is unattainable?
Points outside the PPF such as point G are unattainable. We can produce at any point inside the PPF or on the frontier. Full employment occurs when all the available factors of production are being used. Unemployment occurs when some factors of production are not used.
What is attainable and unattainable combinations?
In Economical terms, an attainable combination is the set or combination of two goods which is feasible by the economy to manufacture with the available resource allocation and technology . ... Points on the right on outside the curve represents the unattainable combination of goods.
What is the optimal point on a production possibilities curve?
The optimal point on a production possibilities curve is achieved where: each good is produced at a level where marginal benefits equal marginal costs . The marginal benefit curve is: downsloping because successive units of a specific product yield less and less extra benefit.
What is an unattainable point?
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.
Why are Ppfs bowed out?
The short answer is: increasing opportunity cost. The PPF is bowed outward because resources are not all equally productive in all activities . ... The more we produce of either good, the less productive are the additional resources we use and the larger is the opportunity cost of one unit of that good.
What does unattainable mean in economics?
All points outside of the curve are unattainable (because they require more resources than are available) without trade with an external producer (such as is the case with international trade). All points within the curve are attainable but productively inefficient.
Which of the following is assumed when drawing an economy’s one year production possibilities curve?
The factors of production in an economy are its labor, capital, and natural resources. In drawing the production possibilities curve, we shall assume that the economy can produce only two goods and that the quantities of factors of production and the technology available to the economy are fixed .
How does unemployment show up on PPC?
On a production possibility curve, unemployment will be highlighted as a point inside the curve . All the points on the curve show that all the resources in the economy are efficiently utilized for production purposes.
What are attainable combination of output?
Attainable combination of output: Those combinations which can be produced with the help of given resources and technology . Unattainable combination of output: Those combinations which can not be produced with the help of given resources or technology.
What are attainable combinations?
In Economical terms, an attainable combination is the set or combination of two goods which is feasible by the economy to manufacture with the available resource allocation and technology .
What is the difference between attainable and unattainable?
As adjectives the difference between attainable and unattainable. is that attainable is able to be achieved, accomplished or obtained while unattainable is impossible to attain or reach; inaccessible, unobtainable or unapproachable; unable to accomplish; beyond limit.
What is a production possibilities curve quizlet?
production possibilities curve. a graph or economic model that shows the maximum combinations of goods and services , any two categories of goods, that can be produced from a fixed amount of resources. production possibilities frontier. the line on a production possibilities graph that shows the maximum possible output.
What is production possibility curve with example?
For example, say an economy produces 20,000 oranges and 120,000 apples . On the chart, that’s point B. If it wants to produce more oranges, it must produce fewer apples. On the chart, Point C shows that if it produces 45,000 oranges, it can only produce 85,000 apples.
Why does a production possibilities curve potentially bow outward quizlet?
Why does a production possibilities curve potentially bow outward? ... Resources are not perfectly adaptable for the production of both goods .
Which is true of points located outside of the production possibility curve?
A point outside the production possibilities curve represents a combination of goods that is: unattainable . ... If an economy keeps increasing its capital stock/number of workers/technology/natural resources, then over time its production possibilities curve will: shift to the right.
What are three things a production possibilities curve shows?
The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions .
How do you use unattainable?
- Even though I wanted the nursing job at the local hospital, I knew my qualifications made the job unattainable for me.
- Since the child was less than four feet tall, the present located on the top shelf was unattainable.
What’s the difference between unobtainable and unattainable?
As adjectives the difference between unobtainable and unattainable. is that unobtainable is not able to be obtained, acquired or reached while unattainable is impossible to attain or reach; inaccessible, unobtainable or unapproachable; unable to accomplish; beyond limit.
What is Production possibility frontier Class 12?
Answer: Production possibility frontier is a curve which depicts all the possible combinations of two goods which can be produced with given resources and technology in an economy .
Which of the following assumptions are true for a production possibilities curve?
The production possibility curve is based on the following Assumptions: (1) Only two goods X (consumer goods) and Y (capital goods) are produced in different proportions in the economy . (2) The same resources can be used to produce either or both of the two goods and can be shifted freely between them.
Does unemployment affect PPF?
d) A decrease in the unemployment rate will not change the PPF itself because actual production in the country was below the PPF when the unemployment rate was high. The decrease in unemployment will expand actual production back to a level on the PPF efficiently using all resources.
What is Philip curve in economics?
Phillips curve, graphic representation of the economic relationship between the rate of unemployment (or the rate of change of unemployment) and the rate of change of money wages. ... William Phillips, it indicates that wages tend to rise faster when unemployment is low.
Do all attainable combinations point to the same level of output?
The point inside the curve means that the resources and technology is not used fully thus giving lessmoutput and point on curve gives us maximum output. Therefore the output level of both attainable combination is different .
Is PPC and PPF the same thing?
Production Possibility Frontier (PPF) is a graphical presentation of the effects of one commodity or product compared to another. ... Production Possibility Curve (PPC) is merely another term used in reference to this, but the concepts are the same .
What does attainable mean in smart goals?
Achievable : Attainable and not impossible to achieve. Realistic: Within reach, realistic, and relevant to your life purpose. Timely: With a clearly defined timeline, including a starting date and a target date. The purpose is to create urgency.
How can the non attainable combinations be converted into attainable combinations?
Answer: The point inside the curve means that the resources and technology is not used fully thus giving lessmoutput and point on curve gives us maximum output. Therefore the output level of both attainable combination is different.
What does a production possibilities curve show us quizlet?
A production possibilities curve (PPC) shows the different combinations of two goods that an economy can produce with a given set of resources and technology , it is usually represented as having a bow-out shape.
What is the conclusion of production possibility curve?
The conclusion that we can draw from the production possibility curve is in order to achieve effeciency, produced goods and services must be regulated and managed properly . If the false allocation of resources takes place, it can lead to shrinkage of the economy.
How does an increase in the quantity of resources affect the production possibility curve?
In the second case, as resources grow over a period of years (e.g., more labor and more capital), the economy grows. As it does, the production possibilities frontier for a society will shift outward and society will be able to afford more of all goods .
What point on a production possibilities curve shows us underutilization?
Underutilization is shown by any point that appears inside the production possibilities frontier . This law states that as production switches from one item to another (for example, from shoes to watermelons), more and more resources are necessary to increase production of the second item (watermelons).
