A the production possibilities frontier (PPF) is bowed outward as a result of
1)constant opportunity costs.
2)increasing opportunity costs.
3)decreasing opportunity costs.
4)scarcity.
5)choice.
2) increasing opportunity cost
Production possibility frontier is bowed outward as a result of increasing opportunity cost
A the production possibilities frontier (PPF) is bowed outward as a result of 1)constant opportunity costs....
Why is the production possibilities frontier (PPF) typically bowed-outward? Under what circumstances would the PPF be a straight line?
20 When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced. a. True b. False
46) A shift outwards of the nation's production possibilities frontier can occur due to: 46) A) a change in the amounts of one good desired. B) an increase in the labor force C) a natural disaster like a hurricane or bad earthquake D) a reduction in unemployment. 48) If a nation's production possibilities frontier moves outward, this represents: A) economic growth. B) an impossible situation. C) rising prices of the two goods on the production possibilities frontier model. D) a...
1. A production possibilities frontier will have a curved or “bowed out” shape if: opportunity costs are increasing. resources are scarce. the economy is growing. opportunity costs are declining. 2. (Figure: Graph Interpretation) In the graph, _____ is the dependent variable and the slope of the line is _____. R; positive S; positive S; negative R; negative 3. If a price floor is set below the market price, it is: ineffective. effective. efficient. inefficient 4. Total surplus is calculated as:...
Figure 1: PPF Production Possibilities Frontier 0 0 Pizza Multiple Choice 1. Refer to the Production Possibilities Frontier (PPF) in Figure 1 on the next page. What is true about point A? (A) It is unattainable (B) Resources are being unused or misallocated (C) Capital exceeds labour in production (D) It is preferable to point B 2. Still referring to Figure 1, what is true about point B? (A) It represents diminishing and increasing opportunity cost (B) It is a...
able Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. The opportunity cost of producing the third unit of consumer goods is units of capital goods. Table: Production Possibilities Schedule I Alternatives Consumer goods per period 0 Capital goods per period 30 28 24 1810 8 2 (Figure: Comparative Advantage) Use Figure: Comparative Advantage. Westland has a comparative advantage in producing: Figure: Comparative Advantage Eastland and Westland produce only two goods, boxes of peaches and boxes of oranges, and...
The fact that a society's production possibility frontier is bowed out, or concave to the origin of a graph, demonstrates the law of _____ opportunity cost. concave constant increasing decreasing
Opportunity cost is evident on the production possibilities frontier (PPF) graph as we move from one unattainable point to an efficient point on the frontier. as we move from an inefficient point to the origin. as we move from one point on the frontier to another point on the frontier. at any one single point on the graph. as we move from the origin to any inefficient point.
Illustrate three of the following concepts using properly drawn and labeled production possibilities frontier graphs. Use a separate ppf graph for each concept you select. 1. scarcity and trade-offs 2. unemployment 3. opportunity cost 4. economic growth
QUESTION 10 A production possibilities frontier with increasing opportunity cost is considered and one with constant opportunity cost is considered A concave, convex OB.convex, concave. C.concave, a straight line. Dvertical; horizontal QUESTION 11 The idea that all income ultimately goes to households, which then use it to buy goods and services from firms, is a central idea of the A production possibilities frontier B. supply and demand model C. circular flow diagram D.classical model