Question

D Question 5 1 pts Refer to the figure below. A scenario involving "attainable production and unemployment is! represented graphically by point 15 LA Chairs OHNWAUavo 10 Desks

Answer 1

So if we look carefully a production possibility curve has been drawn between two products and on that basis, by analyzing the data, we can conclude the various factor about the economic situation of the society

(5) so the production possibility graph has shown the various point and as we know those point which lie on the curve represent the situation when the economy is working on its full potential ( example: A, B, C, D, E) and those points which lies beyond the curve shows that they cannot be achieved by the current resources of economy and these are unattainable point ( example: Z), while those point while lies under the curve as represented by point 'X' it shows that the current resources are not utilized fully and there is some kind of inefficiency in the economy and it also leads to increase in unemployment as well, thus for the current given graph point 'X' will have attainable production but due to inefficiency of economy there will be unemployment

Answer - Point: 'X'

(6) as we have already discussed in the above question point 'Z' will be unattainable because it lies beyond the production possibility curve, that itself means that the current economy doesn't have that many resources to operate at point 'Z' and it will be an unattainable point for the economy.

Answer - Unattainable

(7) so if the economy is working at full employment that means now the economy is working on production possibility curve and as it is given that currently, economy is producing 4 desks it shows that it is working at point 'C' so by moving horizontally we can easily get the number of chair that the economy can produce at that point and on moving left horizontally we will interact on y-axis at the point which can produced the maximum chairs at the given conditions and it is  9 chairs, thus the total production of chairs when the economy is producing 4 desks and working at full employment level is 9 chair

Answer - 9 Chairs

(8) so as we know to shift the production possibility curve we have to either change our production technology so that the output would increase with less scrap material or we can also obtain a shift by increasing the supply of the resources that we have, in the society or we can use both the concept at the same time

Answer - Increase in Resource Supply or Advancement in Technology