Which of the following statements is NOT an assumption underlying the production possibilities curve? Resources are fully and efficiently employed. O Technology is fixed. Production occurs over some specified time period. O The amount of resources available for production can be changed quickly.

Which of the following statements is NOT an assumption underlying the production possibilities curve? Resources are fully and efficiently employed. O Technology is fixed. Production occurs over some specified time period. O The amount of resources available for production can be changed quickly.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 9P

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

Which of the following statements is NOT an assumption underlying the
production possibilities curve?
O Resources are fully and efficiently employed.
O Technology is fixed.
O Production occurs over some specified time period.
O The amount of resources available for production can be changed quickly.

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The possible combinations of two goods that can be produced in a certain period of time under certain conditions of technology and fully employed resources: O a. Scarcity O b. Central problem O C. Opportunity Cost O d. Production possibility
Economics In economics, Economies of Scope occur when: O The production possibilities curve is reduced to one good O It is less costly for a manufacturer to produce a new good if it is already producing another good O New products expand the scale of operations O Corporate vision is driven by long-term outcomes over short-term gains
Which of the following is true of the production possibilities curve? O It shows the minimum attainable output in a given period of time with a given amount of resources. O The quantity and quality of resources remain unchanged during a given period of time along the curve. O It shows that scarcity can be eliminated with full employment of resources. O It slopes downward because of the decreasing opportunity cost of production.
which one of the following is true about the production possibilities frontier (ppf) o a. the information is perfect o b. large number of buyers and sellers o c. free entry and exit o d. government interference in economic activities
The unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in economics as O marginal effects. scarcity constraints. O opportunity costs. O secondary effects.
QUESTION 9 Any point inside the production possibilities curve indicates. O A. the presence of technological change O B. that resources are imperfectly substitutable among alternative C. the presence of inflationary O D. that more output could be produced with the available uses. pressures resources
Which of the following scenarios might explain what an economy would be operating inside its production possibilities curve? Select one: O a. Because damage to natural resources, such as might be caused by deforestation leading to erosion of topsoil, has shrunk the land resource O b. Because of discrimination against employing workers of a certain race or gender O . Because shrinking population has reduced the number of productive workers in the economy O d. Because technological innovations have increased the productivity of labour and capital
Which economic model reveals the variety of options for what to do with your scarce time? Supply curve Demand curve O Income distribution curve O Production possibilities curve
A production possibilities curve is drawn basedon which of the following assumptions?a. Resources are fixed and fully employed, andtechnology advances at the rate of growth ofthe economy overall.b. Resources such as nonrenewable resourceswill decline, but labor remains fullyemployed and technology is unchanged.c. Resources can vary; most resourcesexperience times of unemployment; andtechnology advances, particularly duringwartime.d. Resources such as labor and capital will growand are fully employed, and technology isunchanged.e. None of the answers correct.
A point inside a production possibilities frontier OA. is unattainable. B. indicates that some resources are unemployed. OC. implies that too much capital and not enough labor is being used. O D. is more efficient than points on the production possibilities frontier.
The shape of the production possibilities curve usually has a concave-shape. What does say about the factors of production when the production possibilities curse is a straight line? O diminishing return between the production of featured goods no diminishing return between the production of featured goods O increasing return between the production of featured goods O the factors of production are incapatable
Which of the following scenarios might explain what an economy would be operating inside its production possibilities curve? Select one: O a. Because damage to natural resources, such as might be caused by deforestation leading to erosion of topsoil, has shrunk the land resource O b. Because of discrimination against employing workers of a certain race or gender O c. Because technological innovations have increased the productivity of labour and capital O d. Because shrinking population has reduced the number of productive workers in the economy Next page IMG_7969.jpeg