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What is a an economy working below its most efficient production level?
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Where on a production possibilities curve an economy working below its most efficient production levels is shown?
At any point of underutilization/any point inside of the curve
What is the importance of the production possibility frontier?
It helps an economy select from its scarce resources in a way to achieve the most good. See the Related Link below
Where would a point of under utilization appear on a production possibilities?
below or to the left of the production possibilities frontier
Where would a point of under utilization appear on a production possibilities graph?
below or to the left of the production possibilities frontier
What is production efficiency?
= Production Efficiency = One of the three conditions necessary for an economy to be economically efficient is that it be on its production-possibilities frontier. If it is not on the production-possibilities frontier, more could be produced with the given resources and technology. Because greater production would increase value, any position below the production-possibilities frontier is inefficient. Notice that a great many points satisfy this condition of production efficiency--every point on the production-possibilities frontier is production efficient. To be on the production-possibilities frontier, all resources must be used. Unemployed resources indicate that more goods and services could be produced, which means that the economy was not on the frontier initially. In addition, resources must be used properly. If society randomly assigns people to jobs or if it assigns jobs on the basis of political reliability, it will not produce as much as it could. It will require some people with little intellectual ability to perform jobs that require great intellectual ability, and it will require some people with little strength and endurance to perform jobs that demand much strength and endurance. If switching people among jobs can increase output, the original situation was not on the production-possibilities frontier and thus not economically efficient. This requirement that resources must be used properly can be stated more technically. Production efficiency requires that an equimarginal principle be satisfied. It requires that the ratio of marginal products for any two resources be the same for all products. The table presents a case in which this condition is not met. Here the ratio of the two marginal products for the production of widgets is (5/5) or 1 and the ratio of the two marginal products for getwids is (6/4) or 1 1/2. Production InefficiencyMarginal product of capital is: 5 widgets or 6 getwids Marginal product of labor is: 5 widgets or 4 getwids To show that the situation in the table is not production-efficient, consider what happens if a getwid producer trades a unit of labor to a widget maker for one unit of capital. The widget maker will have no change in output as a result. Reducing capital by one unit cuts output by five, but this is offset by the five widgets the extra labor adds. However, there will be more getwids. The extra unit of capital adds 6 getwids, whereas the loss of a unit of labor subtracts 4 getwids. There is a net gain of two getwids. Because the amount of production after the exchange of resources was more than the original amount, the economy could not have been on the production-possibilities frontier originally. Further, because more output has more value to consumers, the original use of resources was less efficient than the use of resources after the trade. As a result of the trade of resources, marginal products should change. Because more capital is being used in producing getwids, its marginal product in getwid production should drop (by the law of diminishing returns). Because more labor is being used in producing widgets, its marginal product in widget production should drop. Hence some exchange of resources should bring the ratios of marginal products to equality. A second part of economic efficiency is exchange efficiency.
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.
Where on a production possibilities curve an economy working below its most efficient production levels is shown?
At any point of underutilization/any point inside of the curve
What is the importance of the production possibility frontier?
It helps an economy select from its scarce resources in a way to achieve the most good. See the Related Link below
What was the Production Budget for Eight Below?
The Production Budget for Eight Below was $40,000,000.
Where would a point of underutilization appear on a product possibilities graph?
below or to the left of the production possibilities frontier
What are some major job responsibilities for agricultural engineers?
That all depends on what field of agriculture the engineer is covering. This can range from better and more efficient equipment and machinery for livestock and crop production, to the production and processing of livestock and crops. See related links below for more.
Are heat pumps efficient below 30 degrees?
The new generation of heat pumps are efficient below thirty. Just make sure the one you buy is designed for your climate.
What is the chain production?
See the link below
How much paper money does the us treasury print in a year?
The amount printed varies widely from year to year, depending on the state of the economy. Production figures can be found at the Bureau of Engraving and Printing website, linked below.
Where would a point of underutilization appear on a production possibilities?
below or to the left of the production possibilities frontier
Which policy aimed to rebuild the Soviet economy?
Vladimir Lenin's New Economic Policy was one that was specifically intended to rebuild the Soviet Economy after years of Lenin's "war communism" had brought the country's economic production below the levels at the end of the Tsarist regime. Another policy was Joseph Stalin's Five Year Plans.
Where would a point of under utilization appear on a production possibilities?
below or to the left of the production possibilities frontier
