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Suppose Ireland produces only two goods: barley and tablets. The following graph shows Ireland's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. Point Inefficient Efficient Unattainable A         B         C         D         E         F

Suppose Ireland produces only two goods: barley and tablets. The following graph shows Ireland's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. Point Inefficient Efficient Unattainable A         B         C         D         E         F

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Suppose Ireland produces only two goods: barley and tablets. The following graph shows Ireland's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F.

Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply.
Point
Inefficient
Efficient
Unattainable
A
 
 
 
  
B
 
 
 
  
C
 
 
 
  
D
 
 
 
  
E
 
 
 
  
F
 
 
 
### Production Possibility Frontier (PPF) Graph This graph illustrates a Production Possibility Frontier (PPF) showing the trade-off between producing barley and tablets. The PPF is displayed as a curved line that represents the maximum feasible quantity of two goods that a country can produce using available resources and technology. #### Axes: - **Horizontal Axis (X-axis):** Represents the amount of barley produced, measured in millions of bushels. - **Vertical Axis (Y-axis):** Represents the quantity of tablets produced, measured in millions. #### Key Points on the Graph: - **Point PPF:** Represents points on the PPF curve where production is efficient. - **Point A (approx. 20, 50):** Lies inside the PPF, indicating inefficient resource use. - **Point B (approx. 0, 30):** Also inside the PPF, showing underutilized resources. - **Point C (approx. 60, 80):** Lies outside the PPF, representing an unattainable production level with current resources. - **Point D (approx. 80, 60):** Similarly outside the PPF, indicating beyond-capacity production. - **Point E (approx. 60, 40):** Located on the PPF, indicating efficient production. - **Point F (approx. 40, 41):** Also on the PPF, suggesting efficient allocation of resources. - **Point 41, 41:** Indicates a specific combination of barley and tablets on the PPF, emphasizing a balance between the two goods' production. This graph is a useful tool for understanding the trade-offs and opportunity costs in production decisions, aiding in the allocation of resources for optimal efficiency.
Transcribed Image Text:### Production Possibility Frontier (PPF) Graph This graph illustrates a Production Possibility Frontier (PPF) showing the trade-off between producing barley and tablets. The PPF is displayed as a curved line that represents the maximum feasible quantity of two goods that a country can produce using available resources and technology. #### Axes: - **Horizontal Axis (X-axis):** Represents the amount of barley produced, measured in millions of bushels. - **Vertical Axis (Y-axis):** Represents the quantity of tablets produced, measured in millions. #### Key Points on the Graph: - **Point PPF:** Represents points on the PPF curve where production is efficient. - **Point A (approx. 20, 50):** Lies inside the PPF, indicating inefficient resource use. - **Point B (approx. 0, 30):** Also inside the PPF, showing underutilized resources. - **Point C (approx. 60, 80):** Lies outside the PPF, representing an unattainable production level with current resources. - **Point D (approx. 80, 60):** Similarly outside the PPF, indicating beyond-capacity production. - **Point E (approx. 60, 40):** Located on the PPF, indicating efficient production. - **Point F (approx. 40, 41):** Also on the PPF, suggesting efficient allocation of resources. - **Point 41, 41:** Indicates a specific combination of barley and tablets on the PPF, emphasizing a balance between the two goods' production. This graph is a useful tool for understanding the trade-offs and opportunity costs in production decisions, aiding in the allocation of resources for optimal efficiency.
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