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How production possibility frontier provide an insight into the issue of scarcity and choice which an economy faces when deciding what goods and services to produce?
MensahSampson
Since resources are limited,the society cannot get all the goods and services the people want.And hence some mechanisms are used to guide the use of resources in the production of goods and services to satisfy as many as people wants as possible.
When the society do not know what to produce,the Production Possibility Frontier [PPF] is used to represent a boundary between those combination of goods and services which can be produced and those which cannot be produced.
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Does scacity means shortage?
Scarcity means shortage.
What are some examples of scarcity?
Time, jobs, money, diamond, water
What is a example of uneven distribution in southwest Asia?
abundance of oil but a scarcity of water. :)
What was a major problem for the colonies during the revolution?
The high price and scarcity of goods.
Which economic concept is associated with rationing during world war ii?
scarcity
How does the Production Possibility Frontier illustrate scarcity?
Scarcity, on a PPC (PPF) is implied by the bowed (concave-down) shape of the curve, since there is a restriction on how much can be produced and, to get more of something, one must give away something else.
Draw a production possibility curve and use it to explain scarcity choice and opportunity cost?
Production Possibility Curve this is an image of a ppf/ ppc
A point outside a production possibilities frontier is?
A point outside a PPC shows the problem of scarcity. A point outside the Production Possibility Curve shows a combination that cannot be attained because sufficient quantity of resources are not available to produce them.
Society's production possibilities frontier is based on?
simplifying assumptions, but is still useful for illustrating scarcity, opportunity cost, and economic growth.
What is characteristic of the factors of a production?
Scarcity
Is a characteristic of the factors of production?
Scarcity
What is the characteristic of the factors of the production?
Scarcity
What are the risks in farming?
scarcity of factor of production land
What is the problems of the scarcity?
production level decreases bit by bit.
What are the bases of production decisions in subsistence economy?
because of the scarcity
What does Production Possibilities Frontier represent?
it represents the boundary between the goods that are attainable and unattainable within an economy. Inside and along the ppf means that goods are attainable and outside the ppf menas the goods are unattainable and it thereby shows scarcity
How does scarcity affect the factors of production?
Scarcity is the non-abundance of resources. Resources are needed to produce. Thus, the more that is produced, the more resources are being used.
