Unemployed resources (labor, capital, physical resources) of any kind would result in an inefficient production level, and would be shown as a point to the left, or inside the curve. The possibility curve shows how a country can efficiently produce. D) an infinite opportunity cost. What does point Y represent on the PPC? A point inside the PPF means that resources are not being used efficiently. A point inside the production possibilities curve is: A. attainable and the economy is efficient. answer choices . In this video, Sal explains how the production possibilities curve model can be used to illustrate changes in a country's actual and potential level of output. By definition all point to the right or outside of the production possibility curve (frontier) are impossible, given the limits of resources and technology. d. maximum output combination. B)result in more rapid growth. C) a free lunch. Production Possibility Curve is a graphical representation of alternative production possibilities facing an economy. Prof. Paul A. Samuelson used the concept of the production possibility curve to explain the economic problem of a society. ANS: c. While operating within the boundaries of the production possibilities curve, more of both goods can be attained if efficiency is improved. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. E) a tradeoff. If the line crosses the curve an odd number of times the point is inside the curve. The exact point of operation depends on how well the resources of the economy are used. One or more resources (Land, labor, or capital) is being waisted or not used to its potential. A movement from a point in the PPC to a point on the PPC represents a more efficient use of resources. 6. D)any point on either the horizontal or the vertical axis. C. unattainable, but the economy is inefficient. The opportunity cost of 20 more berries is 1 rabbit, but if you assume that this is somewhat linear right over here-- it's not so curved, it's somewhat of a line between those 2 points-- then the opportunity cost of 1 berry is 1/20 of a rabbit. A point that lies outside a country's production possibilities curve means that the country is not able to produce. If a point lies on the curve this means the company is being efficient. Inefficency. 7. b) attainable but not efficient. Efficiency. 7. Tags: Question 12 . If the economy operates on PPF (like points A, B or C), it means resources are fully and efficiently utilised. A point inside a production possibilities curve represents things that can be produced. For polygons see, for example, this link which deals with both ideas. Inside and along the ppf means that goods are attainable and outside the ppf menas the goods are unattainable and it thereby shows scarcity. Rightward shift of PPC. When an economy is in a recession, it is operating inside the PPC. One key assumption the PPC makes is that all resources for production are fixed. A point or combination that is on the production possibilities frontier is a) attainable and efficient. Represents the prevalence of unemployment. A Nash equilibrium occurs when: A. If the economy operates at any point inside PPF (like point ‘D’), it means resources are not fully and efficiently utilised. A production possibility frontier (PPF) shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed If we increase our output of consumer goods (i.e. Rotation of PPC. Any point inside the production possibilities curve is a (an) a. efficient point. If you have a well-behaved simple closed curve imagine a line (ray i.e. The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. [correct answer. Any point inside the production possibilities curve is a (an) a. efficient point. If a point lies inside the curve, this tells the company what? 7. Any point on the PPC curve. D)are attainable only with the full utilization of all resources. Unattainable / impossible. B) unemployment of labor but not capital. A point inside the PPC means that O A. this particular economy has no comparative advantage in production any economic good O B. economic growth has taken place. C)are unattainable. Question 13 . answer choices The points inside the production possibility curve (ppc) are points that indicate inefficient use of the available resouces.and the production technology. When it is at full employment, it operates on the PPC. SURVEY . Any point of production inside the curve is considered inefficient because the economy is not fully utilizing its resources. A production possibility curve (PPC) shows the different combinationstyles of output of TWO goods that an economy can produce considering the factor of production and technology to be constant. 5. The PPC shows the maximum available possibilities which an economy can produce. A point outside the production possibilities curve (PPC): A. Conclusion. 86. 16) A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents 16) A) full employment of labor but not capital. What does it mean if a nation is producing at a point inside the PPC? O C. resources are not being fully ubilized due to unemployment or inefficiency D. one good has no opportunity cost relative to anothe Click to select your answer 3 4 lab . When all these points of different combinations of production of the two goods are joined, they form a Production Possibility Curve. When inside the PPC, it is possible to get more of both goods by utilizing idle resources, or using resources to their capacity. b. unfeasible point. d. maximum output combination. C. While operating within the boundaries of the production possibilities curve, more of both goods can be attained if efficiency is improved. What things will cause the PPC to shift inward or outward? one direction) from your point to infinity. Or the marginal cost of an extra berry is 1/20 of a rabbit. B. c. inefficient point. b. nonfeasible point. unemployed resources in the country is shown by a point under the PPC … This means that the output of product A can only increase if the output of product B decreases.