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Assumptions to determine the PPC is:

  • only 2 goods will be illustrated
  • the amount of resources is fixed
  • state of technology is constant
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Q: What assumptions determine the production possibilities curve?
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Related questions

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.


Is the United States on the production possibilities curve?

no


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


Where on a production possibilities curve the economy working at its most efficient production levels?

Any point on the PPC curve


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.


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.


A point inside the production possibilities curve is.....?

Attainable, but the economy is inefficient.


An increase in technology will cause the production possibilities curve to?

shift outward


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.