What can cause a production possibilities curve to move to the right?
A new invention lowers the cost of production
. What is the purpose of a production possibilities graph? to show alternative ways to use an economy's resources.
What does a production possibility curve show when will it shift to the right?
Answer: The PPC or the Production Possibility Curve represents the output combinations of various goods using the best available technology that can be produced using all the relevant resources. When the curve shifts right it implies
that there is an increase in the technology or the resources or both of them
.
What can cause a production possibilities curve to move to the right?
Shifts in the PPF Curve
Given the fact that resources are scarce, we have constraints, which is what the curve shows us.
When the economy grows and all other things remain constant, we can produce more
, so this will cause a shift in the production possibilities curve outward, or to the right.
What does the production possibilities curve indicate quizlet?
The PPF curve shows
the specified production level of one commodity that results given the production level of the other
. It assumes the maximum possible efficient use of the resources for a maximum possible production of both commodities. … the more a product is produced, the greater is its opportunity cost.
Why is the production possibilities frontier usually graphed as a curve quizlet?
Curve
that shows alternative ways to use an economy's resources
. The line on a production possibilities graph that shows the maximum possible output for a specific economy. What is the purpose of a production possibilities graph? To show alternative ways to use an economies resources.
What are three things a production possibilities curve will show?
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.
What information can a production possibilities curve reveal?
The production possibilities curve shows
the possible combinations of production volume for two goods using fixed resources
. The assumption is that production of one commodity decreases if that of the other one increases.
How is production possibility curve affected by unemployment in the economy?
In the given question, unemployment
implies inefficient use of resources
. Thus, if there is unemployment or inefficient use of resources in an economy then the point on the PPC will shift below the PPC.
Why is production possibility curve concave Class 11?
Production Possibility Curve is concave to the origin because
to produce each additional unit of good X, more and more unit of good Y is to be sacrificed
. Opportunity cost of producing every additional unit of good A tends to increase in terms of the loss of production of good Y.
Why is production possibility curve concave to the origin when will it shift to the right?
Production Possibility Curve (PPC) is concave to the origin
because of the increasing opportunity cost
. As we move down along the PPC, to produce each additional unit of one good, more and more units of other good need to be sacrificed.
What happens when production is inside the production possibilities curve quizlet?
A point lying inside the production possibilities curve indicates
underutilization, unemployment, or inefficient use of resources
: more goods and services could be produced by using the limited resources more fully and efficiently.
Where would a point of underutilization appear on a production possibilities graph?
Answer: It appears
below or left the side of the on Production
Possibility Curve. Explanation: Underutilization means that an economy is producing below the production possibilities curve and there can be various reasons for Underutilization such as Famine, Disaster, War, Disease and Unemployment.
How would you show economic growth on a production possibilities curve?
The simplest way to show economic growth is
to bundle all goods into two basic categories, consumer and capital goods
. An outward shift of a PPF means that an economy has increased its capacity to produce.
What happens when the production of one item increases?
An efficient economy uses resources in such a way as to maximize the output of goods and services. The law of increasing costs means that when an economy increases the production of one item, what happens to the opportunity cost?
Opportunity cost goes up
. … Therefore, the opportunity cost increases.
What does a country's production possibilities curve depend on?
A country's production possibilities curve relies on
resources and technology
.
Which situation would most likely cause a nation's production possibilities curve to shift inward?
Which situation would most likely cause a nation's production possibilities curve to shift inward? Any point inside the production possibilities curve indicates: the presence of inflationary pressures.
the presence of technological change
.
