The only way that a society can produce outside the production possibilities curve is :by producing efficiently. through economic growth. by obeying the Law of Increasing Relative Cost. to use the concept of opportunity cost.

Q: 1- If an economy is producing on its production-possibilities curve, then producing more of one good…

A: Producing on production possibility curve allows the curve to shift away from origin,because trade…

Q: If a student were not studying economics, he could be doing one of the following: sleeping in (which…

A: Opportunity cost is the next best alternative.Opportunity cost shows the forgone units of one good…

Q: Using the concept of production possibility curve, explain how it can be used to  show the…

A: Production possibility curve is a frontier which shows combinations of two goods which an economy or…

Q: None

A: It is true that a country's potential to produce goods and services can decrease as indicated by a…

Q: None

A: Approach to solving the question:1. Define opportunity cost as the value of the next best…

Q: Assume there is a two person economy, where they have only fish and mangos. Susan can pick 18 mangos…

A: "As stated by client only part C answer is provided"The economy consists of two people producing two…

Q: The only way that a society can produce outside the production possibilities curve is Question 9…

A: Production possibilities frontiers are used to represent the trade-off that occurs between the…

Q: Determine whether the following statements is valid or not. The problem of scarcity is due to the…

A: The term "scarcity" describes the situation in which there are not enough resources to meet all of…

Q: Generally, opportunity costs increase and the production possibilities curve bows outward. Why?

A: The production possibility curve is the locus of different combinations of two goods that an economy…

Q: Suppose that the economy of El Paso creates only cowboy boots and pecans. The production…

A: Opportunity cost is the value of the next best alternative that is forgone when a choice is made. In…

Q: The term "opportunity cost" points out that *

A: In economics, there are different types of costs associated with a specific economic activity and…

Q: According to the Production Possibilities Frontier model discussed in class, the cost of a higher…

A: PPF stands for Production Possibilities Frontier. It is a graphical representation of the maximum…

Q: Consider the market for wheat shown in the figure to the right. What would be the impact of a…

A: The demand curve shows an inverse relationship between price and quantity demanded. Demand is a…

Q: A point inside the production possibilities frontier is___ while a point outside the frontier is…

A: Production possibility frontier shows the combination the Production level of two different goods…

Q: Which of the following is not correct? A typical production possibilities curve... reveals how much…

A: Production possibility frontier or PPF shows the different combinations of two goods that can be…

Q: Explain opportunity cost. what importance is opportunity cost to the (a) Individual; (b) Firm; (c)…

A: "In economics, cost refers to the value of money that is spent in order to produce a good." Costs…

Q: Identify each of the following quotes as being associated with either the concept of the invisible…

A: Concept of Invisible hands given by Adam Smith which emphasises that individuals  pursuing their…

Q: Comment on the following statement. Analyze from an economic standpoint. Do you agree or disagree?…

A: Production function and productivity: The production function determines all the input bundles that…

Q: Economics is primarily concerned with the study of:   Production and distribution of goods in a…

A: Economics refers to the investigation of how societies produce and disperse goods and services in a…

Q: Mya and Donovan produce two goods in an 8 hour day. Mya can produce 10 capital or 55 consumables and…

A: According to question data represent the productivity table for the Mya and Donovan in 8 hours a day…

Q: Production at a point inside the production possibilities frontier is unattainable and inefficient…

A: A production possibilities curve shows the various combinations of two goods that an economy can…

Q: Explain using a production possibilities curve what happened to the Russian economy when the SOEs…

A: The production possibility curve is a downward-sloping curve. It is a graphical representation of…

Q: Which of the following statements are true regarding this Production Possibilities Curve? Select all…

A: The Production Possibility Frontier signifies the possible production possibilities in a economy.…

Q: Using the production possibilities frontier model with two goods X and Y, the opportunity cost of…

A: Opportunity cost can be defined as the lose of one alternative when another alternative is chosen.

Q: A production possibilities curve is bowed out, indicating increasing opportunity cost because of

A: Meaning of Production Possibility Frontier: The term production possibility frontier refers to the…

Q: Consider production possibilities of goods and services in China, Since 1980, the population of…

A: Given that the population of China has increased from 1 billion to more than 1.4 billion. And there…

Q: The production possibilities frontier (PPF). has a constant opportunity cost exhibits increasing…

A: Correct : reflects output assuming the full use of society's resources

Q: From the following list, select all the statements that apply to output combinations inside the…

A: The problem at hand involves assessing statements related to output combinations within the…

Q: p. How would the immigration of 10 munchkins, i.e., 10 units of labor, affect the PPF equation? Show…

A:

Q: Is this a good example of opportunity cost? Why or why not. “In 2019, I started my small business by…

A: “In 2019, I started my small business by selling prints of my photographs. Now it’s temporarily…

Q: Draw a production possibilities curve and show the impact of high unemployment and low worker…

A: An explanation of the associated trade-offs and opportunity costs is provided by a production…

Q: an economy is producing the mix of goods and services that society wants, this is an example of…

A: The allocative efficiency is a reflection of the peoples satisfaction gaining from the fulfilment of…

Q: Any point on a country's production possibilities curve represents a combination of two goods that…

A: There are 3 kinds of PPC bend which are straight-line slanting down, inward and raised bend. The…

Q: development (technology). What happens if an economy allocates all of its labor to production and…

A: Romar provided an endogeneous economic growth model for the long term growth of the economy. He…

Q: Question 6 If opportunity costs are constant, then O the production possibilities curve does not…

A: Opportunity cost  When we produce more units of a good then we have to for go the quntity of other…

Q: Using a production possibilities frontier (PPF) diagram, determine how does the PPF change in…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Which of the following statements is not correct?   Multiple Choice   An increase in a nation's…

A: The Production Possibility Curve (PPC), also known as the Production Possibility Frontier (PPF), is…

Q: mya and donovan produce two goods in an 8 hour day.Mya can produce 10 capital or 55 consumables and…

A: The opportunity cost of capital refers to the cost by which a person gets to choose between two or…

Q: The slope of the production possibilities frontier is called

A: Production possibility frontier shows the combinations of output that the economy can possibly…

Q: When economic growth occurs, the production possibilities frontier shifts outward but no longer…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Would the study of economics be necessary if resources were unlimited?

A: Economics is study of managing limited resources against unlimited human wants so that maximum level…

Q: Scarcity is a problem because... Group of answer choices There are not enough resources to produce…

A: Scarcity refers to shortage of resources in response human wants.

Production Possibility Analysis

The production possibility analysis comprises the production possibility frontier (PPF), or the production possibility curve (PPC) to evaluate a society or even an economy. The production possibility curve represents the cost that the society has to incur for choosing between two different commodities. It is assumed that an economy that operates at the highest production possibility curve is known to have a better standard of living which the society can achieve for producing the optimum level of output which it can produce given a specified number of factors of production or inputs or resources.