C. is illustrated by a point outside the production possibilities curve. Shifts in the production possibilities curve are caused by things that change the output of an economy, including advances in technology, changes in resources, more education or training (that's what we call human capital) and changes in the labor force. (D) that resources are imperfectly substitutable among alternative uses. B. can exist at any point on a production possibilities curve. 7. C. Not produce any more of one of the goods X … Other things equal, this... Country X has a high unemployment rate. A point inside also indicates a recession. Any point inside the production possibilities curve indicates A the presence of from CUSHMANGT 032 at University of Texas d. maximum output combination.C. the attainable production points on a production possibilities curve are. 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. C. the presence of inflationary pressures. Since resources are use specific, therefore every time when one more unit of a commodity is produced more units of the other commodity are sacrificed that results in increasing marginal opportunity cost which leads to the concave shape of the production possibility curve. Trade-offs, opportunity costs and production possibilities DRAFT. Production possibility curve illustrate the real choices and trade-offs that countries face. b. illustrates resources being used to their fullest potential. B) that resources are imperfectly shiftable among alternative uses. Full Employment If an economy is operating on the production possibilities curve, and is thus operating at full production, it will use all resources fully. While operating within the boundaries of the production possibilities curve, more of both goods can … The PPF simply shows the trade-offs in production volume between two choices. answer choices ... What do points inside the PPF indicate? Any point outside the production possibilities curve illustrates: Answer minimum production combinations maximum production combinations economic growth a nonfeasible production combination none of the above D. that more output could be produced with available resources. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. D) that more output could be produced with … A point below the Production Possibility curve denotes that the economy is not fully utilizing its productive capacity. Answer to: A point inside the production possibility frontier indicates an economy that is underutilizing resources. 9th - 12th grade. c. inefficient point. B. the presence of inflationary pressures. d. maximum output combination. When the economy is operating at any point above the Production Possibility curve, indicate a situation of growth of resources or improvement of technology. Any economic activity should be expanded as long as marginal benefits (MB) exceed marginal costs (MC) and should be reduced if marginal costs are greater than marginal benefits. A point inside the PPF is the only place where an entity can simultaneously produce more of each good or service. An output combination that is unobtainable with the current. If a nation is operating at a point inside the production possibilities curve, it indicates that the nation could: A. Refer to the above diagram. production possibilities curve. If the country decides to ramp up its sugar production, using the existing fixed resources, it has to lower its pizza production. Prof. Paul A. Samuelson used the concept of the production possibility curve to explain the economic problem of a society. The answer is a.) A point lying inside the production possibilities curve a. indicates that resources are not being fully or efficiently used. A point inside a production possibilities curve represents things that can be produced. The production possibilities curve is also called the PPF or the production possibilities frontier. It represents something to be achieved in the future when more technology or labor are available. B. can exist at any point inside the PPF indicate two choices achieved in the future when technology! Be at this point, but only at the expense of any point inside the production possibilities curve indicates the other good goods being.. 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