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Draw a production possibility curve and use it to explain scarcity choice and opportunity cost?
Wiki User
∙ 11y ago
Production Possibility Curve
this is an image of a ppf/ ppc
Wiki User
∙ 11y ago
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Explain with the help of production possibility diagram the concept of opportunity cost?
Opportunity cost is the amount you might lose if you do not take the opportunity. You can write out the graph or find examples online.
What is the most common shape of a production possibility curve Explain why this is so?
The most common shape of a Production Possibility Curve (PPC) is a concave bulging in towards the origin (or a quarter circle from one axis to the other.) This is due to the fact that as the production in one goods increase, the opportunity cost of producing the extra of that good (or the amount of Good B that it has to give up) become less.
What is the central problem in economics?
the central problem in economics relates to scarcity, choice and opportunity cost
Explain how scarcity affects everyone?
Scarcity typically induces needs and wants for people.
Q 1 Discuss in detail the term economic resources with reference to service industry Explain the link between scarcity choice and opportunity cost?
Scarcity: the inability of economic actors to satisfy their wants and need to make trade-offs to achieve their optimal outcome. Opportunity cost: the highest-valued alternative action forgone as the result of taking an action. Link: scarcity implies all wants cannot be met. To meet our wants, we make trade-offs. Trade-offs involve opportunity costs because we must sacrifice alternatives outcomes for the rational (optimal outcome). Therefore, opportunity costs are the price we pay to trade-off in the condition of scarcity.
Explain with the help of production possibility diagram the concept of opportunity cost?
Opportunity cost is the amount you might lose if you do not take the opportunity. You can write out the graph or find examples online.
What is the most common shape of a production possibility curve Explain why this is so?
The most common shape of a Production Possibility Curve (PPC) is a concave bulging in towards the origin (or a quarter circle from one axis to the other.) This is due to the fact that as the production in one goods increase, the opportunity cost of producing the extra of that good (or the amount of Good B that it has to give up) become less.
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.
What is the central problem in economics?
the central problem in economics relates to scarcity, choice and opportunity cost
Explain how scarcity affects everyone?
Scarcity typically induces needs and wants for people.
Q 1 Discuss in detail the term economic resources with reference to service industry Explain the link between scarcity choice and opportunity cost?
Scarcity: the inability of economic actors to satisfy their wants and need to make trade-offs to achieve their optimal outcome. Opportunity cost: the highest-valued alternative action forgone as the result of taking an action. Link: scarcity implies all wants cannot be met. To meet our wants, we make trade-offs. Trade-offs involve opportunity costs because we must sacrifice alternatives outcomes for the rational (optimal outcome). Therefore, opportunity costs are the price we pay to trade-off in the condition of scarcity.
Explain the economic problems between the city dweller and the farmers?
Scarcity is our limited resources but unlimited wants. Our resources are limited by the 4 factors of production - land, labour, capital and enterprise. The problem of scarcity is that our wants are always beyond what we can produce with our resources. porn
What is an example to explain the concept of scarcity?
Mixed economy
Economics is the science of scarcity and choice explain?
That description fails to account for the fact that so much human activity under capitalism is matter of being forced to do something, not a matter of choice. For instance, the majority of people are forced to sell their ability to work for a wage. And scarcity is an artificial situation caused by capitalism’s rule of no profit- no production.
What are productive opportunities?
Productive Opportunities by Kayors A short answer which I hope will help: The definition of what can be produced within an economy or "productive opportunities" would depend on the advancement of technology, the availability and access to resources and also what producers and entrepreneurs can think of at the given time. If you are into economics, a simpler understanding can be derived from the Production Possibilities Frontier Model which also explain the concept of scarcity and opportunity cost. A more in-depth view may be obtained from production theory.
Explain how scarcity requires individuals and nations to make decisions about resources?
bob
What does the production possibilities curve describes?
The production possibility curve is an analytical tool that is u to explain,analyse and justify the problem as regards the choices in the allocation of productive resources to achieve a given level of output in an hypothetical way. It is based on a short run period is production where some factors are held constant and the otthers can be varied to achieve a given level of output. The production possibility curve explains the rate of transformation between commodity (x and y) when the level of productive resources is given.the slope of the curve is concave to the origin and it touches both axis. The production possibility curve is also called production frontier or production boundary.
