The production possibilities curve shifts outward in response to : Improved technology or more resources or both . Entrepreneurship refers to: Ability to see market opportunities and the will to take risk.
Which of the following would cause a production possibilities curve to shift outward?
Outward or inward shifts in the PPF can be driven by changes in the total amount of available production factors or by advancements in technology . If the total amount of production factors like labor or capital increases, then the economy is able to produce more goods at any point along the frontier.
What may cause the production possibilities of an economy to shift outward quizlet?
The process through which an economy's production possibilities curve shifts outward is: a. resource renewal .
What may cause the production possibilities of an economy to shift inward quizlet?
What may cause the production possibilities of an economy to shift inward? a decline in the level of technology which may force an economy to revert back to backward technology .
Which of the following will shift the production possibilities curve outward quizlet?
An improvement in technology will tend to cause a society's production possibilities curve to shift outward. You just studied 14 terms!
What are 4 factors of production?
Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship . The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.
Which of the following will not shift the production possibilities curve outward?
(B) A reduction in unemployment would NOT produce an outward shift in the production possibilities curve.
What are two factors that could shift the production possibilities frontier outward?
- Investment in capital i.e. plant and machinery and new technology.
- Inward migration of younger, skilled workers.
- Discovery of new natural resources.
- Improved education, training and healthcare to lift labour productivity.
What is production possibility curve explain with diagram?
The production possibility curve represents graphically alternative production possibilities open to an economy . The productive resources of the community can be used for the production of various alternative goods. But since they are scarce, a choice has to be made between the alternative goods that can be produced.
What would cause the PPF to shift inward?
An inward shift of a PPF
A PPF will shift inwards when an economy has suffered a loss or exhaustion of some of its scarce resources . This reduces an economy's productive potential.
What causes economic growth?
Increases in capital goods, labor force, technology, and human capital can all contribute to economic growth. Economic growth is commonly measured in terms of the increase in aggregated market value of additional goods and services produced, using estimates such as GDP.
When an economy is operating at a point on its production?
If an economy is operating on its production possibilities frontier, it must produce less of one good if it produces more of another. If an economy were experiencing substantial unemployment, the economy is producing inside the production possibilities frontier.
Which of the following is an example of a factor of production?
Factors of production are the inputs needed for the creation of a good or service. The factors of production include land, labor, entrepreneurship, and capital .
What does a point outside the production possibilities curve represent?
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 is another name for the production possibilities curve?
The PPF is also referred to as the production possibility curve or the transformation curve .
Why does a production possibilities curve have a bowed out shape?
The Production Possibilities Curve (PPC) is a model that captures scarcity and the opportunity costs of choices when faced with the possibility of producing two goods or services. ... The bowed out shape of the PPC in Figure 1 indicates that there are increasing opportunity costs of production .
