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When charted on a graph Production possibilities frontiers tend to curve?
Yes, they do.
Why does a production possibilities curve have a bowed-out shape?
The PPF is bowed outwards (concave to the origin) as tradeoffs between the production of any two goods are constant.
What assumptions determine the production possibilities curve?
Assumptions to determine the PPC is:only 2 goods will be illustratedthe amount of resources is fixedstate of technology is constant
What condition must exist for the production possibilities curve to be concave to the origin?
A production possibilities curve (PPC) is concave to the origin when the opportunity cost of producing one good increases as more of that good is produced. This typically occurs due to the law of increasing opportunity costs, which suggests that resources are not perfectly adaptable for the production of different goods. As production shifts from one good to another, increasingly less efficient resources must be utilized, leading to a bowed-out shape of the curve. This reflects the trade-offs and the diminishing returns associated with reallocating resources.
Explain why a production possibilities curve is concave?
Because when one produces one product, the opportunity cost of the other product increases i.e. the concave represents the increasing opportunity cost with the production of a good.
If the law of increasing opportunity costs is reflected in a production possibilities curve which is?
production possibilities curve convex to the origin. Elson Mendoza was here.
How does production possibilities curve differ from production possibilities frontier?
the possibility production curve show production that can be produces using minimum resources whereas the possibilty productive frointer show the attainable levls of production.
Is the outward curve of the production possibilities curve good or bad?
it really good
Is the production possibilities curve convex to the origin?
yes
How does a production possibilities curve illustrate how efficient an economy is?
A production possibilities curve illustrates how efficient an economy is by indicating the possibly opportunities in the economy. This will also illustrate the relevant costs entailed in the production.
Where on a production possibilities curve the economy working at its most efficient production levels?
Any point on the PPC curve
A point that lies outside a country's production possibilities curve mean what?
A point that lies outside a country's production possibilities curve means that the country is not able to produce. The possibility curve shows how a country can efficiently produce.
An increase in technology will cause the production possibilities curve to?
shift outward
A point inside the production possibilities curve is.....?
Attainable, but the economy is inefficient.
When charted on a graph Production possibilities frontiers tend to curve?
Yes, they do.
What does a point inside a production possibilities curve represent?
A point inside a production possibilities curve represents things that can be produced. However, points inside the curve would be less efficient to produce than those points resting directly on the line.
What causes movement along a production possibilities curve?
Movement along a production possibilities curve would imply that society has chosen a different set/amount of input for the two products/services represented in the graph.
