Introduction to Economics and the Economy 1. C) decreasing opportunity costs. Therefore, the opportunity cost of producing more units grows and the PPF becomes steeper and steeper. All choices along the curve shows production efficiency of both goods. Free. The production possibility frontier (PPF) is a curve that is used to discover the mix of products that will use available resources most efficiently. A PPF/PPC representation can take the shape of a concave or a straight line, (aka “linear”), depending on the elements and factors being taken into the equation. Answer. C)a point outside the production possibilities frontier. True b. ANS: The PPF is typically bowed-outward due to the law of increasing opportunity costs. We use cookies to give you the best possible experience on our website. 2)increasing opportunity costs. Explain what productive efficiency means. The PPF is typically bowed-outward due to the law of increasing opportunity costs. The PPF is typically bowed-outward due to the law of increasing opportunity costs. a. production possibilities frontier (PPF) after the war has probably shifted to the right compared to its PPF prior to the war. 2 - Look back at Exhibit 4 and notice that the slope... Ch. The law of increasing opportunity cost results from the varying ability of resources to adapt to the production of different goods and it helps to explain why production possibilities curves are typically bowed outward. 2 - Give an example to illustrate each of the... Ch. Any societyâ s choice problem is illustrated by using a diagram, called production possibilities curve (PPC) or production possibilities frontier (PPF). Unlock to view answer. D) All of the above are possible and more information is needed to determine which answer is correct. Multiple Choice . 2 - Give an example to illustrate each of the... Ch. A PPF is more likely to be a downward-sloping curve that is bowed outward than a downward-sloping straight line because - Answered by a verified Tutor . Question: An economy's production possibilities frontier would shift outward as a result of: (x) A decrease in the rate of unemployment as more workers became employed. E) choice. One cause could be the effects of natural disasters such as drought, earthquakes or severe floods which destroy built-up capital and potentially causes significant loss of life. Question: A Bowed Out PPF Reflects Which Of The Following Ideas? I.If the PPF is bowed outward (from the origin), producing more of one product results in greater and greater opportunity costs in the output of the second product. A production possibilities frontier with a bowed outward shape indicates an increase in opportunity costs as more and more of one good is produced. A PPF is a straight line as a result of A) constant opportunity costs. Imagine you are producing at point A in the graph of part a). The desired result is to maximize the potential output level of one of the commodities in relation to that of the other. Production-Possibility Frontier delineates the maximum amount/quantities of outputs (goods/services) an economy can achieve, given fixed resources (factors of production) and fixed technological progress.Points that lie either on or below the production possibilities frontier/curve are possible/attainable: the quantities can be produced with currently available resources and technology. 152. 115) One point on a PPF shows production levels at 50 tons of coffee and 100 tons of bananas. ANS: An economy is producing efficiently … Now you want to consider raising 200 llamas (which means moving to point B). 2 - Why are most PPFs for goods bowed outward (concave... Ch. a. increasing opportunity costs. 2 - What condition must hold for the PPF to be bowed... Ch. D) scarcity. III.Unattainable combinations of goods are shown by points inside the PPF. The result is that the PPF is typically bowed-outward due to the law of increasing opportunity costs. The bowed out shape of the PPF is because certain factors of production are better suited to producing one good than they are to producing another good. b. PPF after the war has probably shifted to the left compared to its PPF prior to the war. 1 Answer to A bowed out PPF reflects which of the following ideas? D) scarcity. A PPF is bowed outward as a result of A) constant opportunity costs. 2 - Within a PPF framework, explain each of the... Ch. There you produce only grapes using all of your land. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate NATIONAL STANDARDS: United States - BUSPROG: Analytic LOCAL STANDARDS: United States - OH - Default City … Don't use plagiarized sources. As a result, our contributions are (i) measuring economic growth based on a shift of bowed-out PPF outward and (ii) proving formally that the long-term or natural or potential rate of growth is determined by rate of growth of effective labour. An increase in the quantity of resources and an advance in technology. D) curve that is bowed outward if constant opportunity costs exist. Ch. As more of a product is produced, it becomes increasingly more difficult to find resources that are well-suited to producing that product. If a further $20 billion increase beyond the initial $20 billion For example, if the two goods are food and clothes, then in order to produce more and more clothes, eventually the most productive farm land must be allocated to clothes production. scarcity. As more of a product is produced, it becomes increasingly more difficult to find resources that are well-suited to producing that product. Therefore, the opportunity cost of producing more units grows and the PPF becomes steeper and steeper. C) bowed outward. 33) The nationʹs production possibilities frontier is bowed outward. 14.From a point within the PPF, rearranging produc-tion and producing more of all goods is possible. B) increasing opportunity costs. 5)choice. Remaining on the PPF, an increase of banana production to decreasing opportunity costs. Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. 13.From a point on the PPF, rearranging production and producing more of all goods is possible. To A production possibility frontier is a curve that represents the rates of production of two commodities that use the same factors of production within a specified period (Bradford, 2007). Sign in Business. If the PPF shifts rightward and the population doesn't change, what rises. An outward shift of a PPF means that an economy has increased its capacity to produce all goods. Explain what productive efficiency means. PTS: 1 DIF: Difficulty: Challenging NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Analysis 4. Free. Answers: a movement from A to C a movement from B to D a movement from C to D a movement from F to D none of the aboveQuestion 162.5 out of 2.5 points A PPF is bowed outward as a result of Answers: constant opportunity costs. 15.Production efficiency requires producing at a point on the PPF. As a result, the country's. C) curve that is bowed outward if increasing opportunity costs exist. An outward shift of the PPC results from growth of the availability of inputs, such as physical capital or labour, or from technological progress in knowledge of how to transform inputs into outputs. Describe how productive efficiency is represented by a PPF. B) increasing opportunity costs. Subscribe. Hit Return to see all results. 2 - Look back at Exhibit 4 and notice that the slope... Ch. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. In this case the opportunity cost curve is a negatively sloping convex curve to the origin. By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. II.If the economy is operating at full and efficient employment, the output combinations will be on the PPF. 4)scarcity. 1)constant opportunity costs. An outward shift of the production possibilities frontier is only possible if the country discovers new resources or there is an improvement in technological development. B) straight line if decreasing opportunity costs exist. 3)decreasing opportunity costs. The result is that the PPF is typically bowed-outward due to the law of increasing opportunity costs. C) decreasing opportunity costs. February 12, 2014, sahan, Leave a comment. When using a PPF, growth is defined as an increase in potential output over time, and illustrated by an outward shift in the curve. Q 72 Q 72. c) The PPF is bowed outward due to the law of increasing opportunity costs. bowed-outward PPF What are the two major factors that affect economic growth? E) choice. A the production possibilities frontier (PPF) is bowed outward as a result of. The PPF between goods X and Y will be a downward-sloping A) straight line if increasing opportunity costs exist. 16.Along a bowed-out PPF… An inward shift of the production possibility frontier (PPF) represents a fall in a nation’s supply-side or productive capacity. Suppose that the government decides to increase the production of armaments by $20 billion, and that as a result the output of consumer goods falls by $20 billion. The production possibility curve is the frontier (or outer boundary) of the production possibility set, and it captures the trade-off in production of different commodities. c. 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