b. If the economy is at point C, what is the (opportunity) cost of 2 more automobiles? What is the (opportunity) cost of 6 more forklifts? Which characteristic of the production possibilities curve reflects the law of increasing opportunity costs: its shape or its length? (Click to select) ✓ c. If the economy characterized by this production possibilities table and curve is producing 3 automobiles and 20 forklifts, what could you conclude about its use of available resources? The economy is (Click to select) ✔ its available resources. d. Is production at a point outside the production possibilities curve currently possible? (Click to select) Could a future advance in technology allow production beyond the current production possibilities curve? (Click to select) Could international trade allow a country to consume beyond its current production possibilities curve? (Click to select) ✓
b. If the economy is at point C, what is the (opportunity) cost of 2 more automobiles? What is the (opportunity) cost of 6 more forklifts? Which characteristic of the production possibilities curve reflects the law of increasing opportunity costs: its shape or its length? (Click to select) ✓ c. If the economy characterized by this production possibilities table and curve is producing 3 automobiles and 20 forklifts, what could you conclude about its use of available resources? The economy is (Click to select) ✔ its available resources. d. Is production at a point outside the production possibilities curve currently possible? (Click to select) Could a future advance in technology allow production beyond the current production possibilities curve? (Click to select) Could international trade allow a country to consume beyond its current production possibilities curve? (Click to select) ✓
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Step 1: Define Production Possibility Curve
VIEWStep 2: Illustrate and explain PPC
VIEWStep 3: Determine the opportunity cost of 2 more automobile if the economy is at point C and 6 more Forklift
VIEWStep 4: Explain which characteristics of PPC reflects the law of increasing opportunity cost
VIEWStep 5: Explain what can be the conclusion about its use of resources
VIEWStep 6: Explain if production at a point outside the PPC curve currently possible
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