If the production possibilities curve is a straight vein:?
Unemployment:
A. causes the production possibilities curve to shift outward.
B. can exist at any point on a production possibilities curve.
C. is illustrated by a point outside the production possibilities curve.
D. is illustrate by a point inside the production possibilities curve.
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If the production possibilities curve is a straight line:
A. the two products will sell at one and the same market prices.
B. economic resources are without blemish substitutable between the production of the two products.
C. the two products are equally important to consumers.
D. equal quantities of the two products will be produced at respectively possible point on the curve.
Answers:
For the first question, the answer is D. The PPC represents what the economy could produce if here is full employment (i.e., if all resources are being used trimly and to their full extent). Since labor is a resource, unemployment means that labor is not one used to its fullest extent, so the economy can't produce as much as the points on the PPC--instead it has to produce some smaller amount of stuff contained by general, which is represented by a point inside the curve.
For the second question, the answer is B. If the PPC is curved, next it means that some of the resources are better suited to producing either virtuous X (the one on the horitzontal axis) or good Y (the one on the vertical axis). Why is this the case?
Well, if you start out at the point where on earth you're ONLY producing good Y, and you want to produce one unit of apposite X, you'll see that you only have to sacrifice for a time bit of Y to get that one unit of X. But if you want to produce another section, you have to give up more Y. You hold on to giving up more Y for the same increase in X as you walk down the curve, because at the beginning you're reassigning resources that are the best at producing X first, then as you move down the resources that are still person used for Y become progressively less useful for producing X, so it take more of them to make more X, meaning that you'll lose more and more production of Y per part of X when you move down the curve.
But if the PPC is a straight line, the amount of Y you have to bequeath up to make one more X is like everywhere, and the amount of X you have to give up to take home one more Y is the same everywhere as all right. This means that the production of goods X and Y uses resources that are unfaultable substitutes for each other.
Answers A and C don't even relate to anything that the PPC can tell you, and answer D is a moment ago plain wrong; there's only one point on the PPC where you'll own equal quantities of the goods. Everywhere else you'll hold something like 9 X and 3 Y or 4 X and 8 Y.
Hope that helps.
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What condition must hold for the production possibilities frontier to be bowed outward? to be a straight flash?
A. causes the production possibilities curve to shift outward.
B. can exist at any point on a production possibilities curve.
C. is illustrated by a point outside the production possibilities curve.
D. is illustrate by a point inside the production possibilities curve.
--------------------------------------…
If the production possibilities curve is a straight line:
A. the two products will sell at one and the same market prices.
B. economic resources are without blemish substitutable between the production of the two products.
C. the two products are equally important to consumers.
D. equal quantities of the two products will be produced at respectively possible point on the curve.
Answers:
For the first question, the answer is D. The PPC represents what the economy could produce if here is full employment (i.e., if all resources are being used trimly and to their full extent). Since labor is a resource, unemployment means that labor is not one used to its fullest extent, so the economy can't produce as much as the points on the PPC--instead it has to produce some smaller amount of stuff contained by general, which is represented by a point inside the curve.
For the second question, the answer is B. If the PPC is curved, next it means that some of the resources are better suited to producing either virtuous X (the one on the horitzontal axis) or good Y (the one on the vertical axis). Why is this the case?
Well, if you start out at the point where on earth you're ONLY producing good Y, and you want to produce one unit of apposite X, you'll see that you only have to sacrifice for a time bit of Y to get that one unit of X. But if you want to produce another section, you have to give up more Y. You hold on to giving up more Y for the same increase in X as you walk down the curve, because at the beginning you're reassigning resources that are the best at producing X first, then as you move down the resources that are still person used for Y become progressively less useful for producing X, so it take more of them to make more X, meaning that you'll lose more and more production of Y per part of X when you move down the curve.
But if the PPC is a straight line, the amount of Y you have to bequeath up to make one more X is like everywhere, and the amount of X you have to give up to take home one more Y is the same everywhere as all right. This means that the production of goods X and Y uses resources that are unfaultable substitutes for each other.
Answers A and C don't even relate to anything that the PPC can tell you, and answer D is a moment ago plain wrong; there's only one point on the PPC where you'll own equal quantities of the goods. Everywhere else you'll hold something like 9 X and 3 Y or 4 X and 8 Y.
Hope that helps.
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