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What line that shows different production possibilities for an economy?
production possibilities frontier
An economy at its production possibilities frontier is operating?
At full potential.
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.
What does it mean when the frontier shifts outward?
When the frontier shifts outward, it indicates an expansion of an economy's production capabilities, often represented by the production possibilities frontier (PPF). This shift can result from factors such as technological advancements, increases in resources, or improvements in efficiency. As a result, the economy can produce more goods and services than before, leading to potential growth and increased overall welfare.
What is a production possibilities graph?
production possibilities graph is a graph that shows alternative ways to use an economy's resources.
What line that shows different production possibilities for an economy?
production possibilities frontier
An economy at its production possibilities frontier is operating?
At full potential.
An economy working below its most efficient production levels?
An economy working below its most efficient production levels points inside the production possibilities frontier. This is in the context of a production possibilities curve.
Do intersection of points inside the frontier (line) shows that an economy is growing?
The intersection of points inside the frontier, such as a production possibilities frontier (PPF), typically indicates underutilization of resources rather than economic growth. Economic growth is represented by a shift of the frontier outward, reflecting an increase in the economy's capacity to produce goods and services. Points within the frontier suggest inefficiencies in production, while movement towards or along the frontier can signify improvements in resource allocation or technology. Thus, while these points don't indicate growth, they highlight potential for improvement.
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.
Is Production possibilities graphs reveal how efficient an economy is?
No, by itself it just shows the production possibilities but provides no information on what the economy is actually doing.
What does it mean when the frontier shifts outward?
When the frontier shifts outward, it indicates an expansion of an economy's production capabilities, often represented by the production possibilities frontier (PPF). This shift can result from factors such as technological advancements, increases in resources, or improvements in efficiency. As a result, the economy can produce more goods and services than before, leading to potential growth and increased overall welfare.
What is a production possibilities graph?
production possibilities graph is a graph that shows alternative ways to use an economy's resources.
Does unemployment move outside the production possibilities frontier?
The production possibilities frontier is a curve illustrating the various ratios of goods that can be produced by a nation when that nations economy is at maximum productivity, using all resources (including labor). To be at maximum productivity there must be full employment. When there is not full employment (unemployment) the country cannot be on it's PPF, let alone beyond it. The nations economy is represented by a point within, or under, the curve.
Where would a point of underlization appear on production possibilites graph?
A point of underutilization on a production possibilities graph appears inside the production possibilities frontier (PPF). This indicates that the economy is not using all of its available resources efficiently, resulting in lower output than the maximum potential. Such points suggest that improvements can be made to increase production without sacrificing other goods.
Would the production-possibility frontier look different in a command economy?
The production-possibility frontier would not look different in a command economy compared to a market economy because the PPF equate the rates of production between two goods which both use equal factors of production.
Would the production possibility frontier look different in a command economy?
The production-possibility frontier would not look different in a command economy compared to a market economy because the PPF equate the rates of production between two goods which both use equal factors of production.
