points lying ___ the production possibilities curve are attainable, reflecting less total output that can be produced. Microeconomics 1 (ECON1101) Academic year. Entrepreneurs try to maximize profit or minimize loss. Trade restrictions can take any of the following forms except one. Different points of PPF denote alternative combination of two commodities that the country can choose to produce. Answer. Get step-by-step explanations, verified by experts. (Check al that apply) A. Assume that India has a comparative advantage in producing a computer game. In other words, if more of good A is produced, less of good B can be produced given the resources and productio… The points along the production possibilities frontier. D) allocatively efficient. The United States has an absolute advantage in producing the same game. On the chart, that is Point A. Now one way to understand this production possibilities curve is it shows what can be efficiently produced by this country. b. the inflation rate in the United States is too high, If Japan can produce each unit of steel using fewer resources than Canada uses, e. Japan has an absolute advantage in steel production. Insufficient resources for a second product mean a vertical/ho… toppr. Solution by an expert tutor. variable increasing while the other decreases and vise versa, represented as a line moving from bottom right hand corner to. Dylan receives a salary for his work as a financial analyst for an investment firm, If an economy is producing efficiently, then, a. there is no way to produce more of one good without producing less of another good. Chapter 1 Revision Questions. The attainable production points on a production possibility curve are A) the horizontal and vertical intercepts. Log in. B) unattainable. Point A B. What are they? University. Chapter 09- Decision Making by Individuals and Firms, Chapter 05- Price Controls and Quotas- Meddling with Markets. The production possibility curve represents graphically alternative produc­tion possibilities open to an economy. c. What will be produced, how goods will be produced, and for whom goods will be produced. 1. Production-Possibilities Curve: Any point inside (to the left) of the production-possibilities curve is attainable but is not efficient. The figure at right shows a production possibilities curve (PPC) for Joe. Ask your question. Productive efficiency is closely related to the concept of technical efficiency. Which of the following is a normative economic statement? Sign in Register; Hide. D) the points along and inside the production Therefore, the attainable production points on the PPC are the points that are inside and along the production possibilities … b. positive statements offer descriptions of the way things are, where as normative statements offer opinions on how things ought to be. For Joe, which production points are attainable? 4. One way to characterize the difference between positive statements and normative statement is as follows? Comparative Advantage and the Basis for Trade Revision Questions Question 1 a What is the production possibility curve and what does it reflect b With this in. If it efficiently utilized all of its resources, then it will produce some combination of forks and spoons that sit on the production possibilities curve. Which of the following does NOT take place in the markets for factors of production in the circular-flow diagram? A farmer is deciding whether or not to add fertilizer to his or her crops. Whenever the Course Hero is not sponsored or endorsed by any college or university. Join now. Similarly, point B is a combination of 50 units of Good X and 28 units of Good Y. The point of PPF that are attainable are called the attainable combinations. Taylorprideee9539 01/22/2020 Business High School +5 pts. The productive resources of the community can be used for the production of various alternative goods. Point B. C. Point C. D. Point D E. Point E For Joe, which production points … C) the points outside the area enclosed by the production possibilities frontier. The _____ production points on a production possibility curve are the points along and inside the production possibility frontier. ?+++****, What economic growth is and how present choices, determine future production possibilities, Unemployment, Productive Inefficiency, and the Production, A point below the PPC represents unemployment or failure to, achieve production efficiency, by realizing full employment and, product efficiency the economy could begin to operate on the, Economic Growth and the Production Possibility Curve, When Economic growth occurs the PPC curve increases to the, upward right-hand side, into the previously unattainable, Images explain two possibilities one with-out growth and one, expressed both variables increasing at the, same time, represented as a line from bottom left corner to top, Inverse Relationship (indirect relationship). Productive efficiency and short-run average cost curve. 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