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When constructing a production possibility curve for an economy what is held constant?
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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.
Is the current US economy on the production possibility curve?
An economy can be producing on the PPF curve only in theory. In reality, economies constantly struggle to reach an optimal production capacity.
What do you call an economy working at its most efficient production level?
PPF- product possibility frontier.
What are the assumptions behind production possibility frontier?
1) an economy's resources are fixed in both quantity and quality 2) the state of technology is constant 3) That 2 types of goods are produced 4) that the resources are completely mobile between the production of both goods hope that helps
What happens to supply when technology improves?
when technology improves, PPC (production possibility curve ) will shift rightward and the total production in an economy will increase.
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.
What is representation of the possible ways an economy could use resources?
Production Possibility Frontier
Is the current US economy on the production possibility curve?
An economy can be producing on the PPF curve only in theory. In reality, economies constantly struggle to reach an optimal production capacity.
What do you call an economy working at its most efficient production level?
PPF- product possibility frontier.
What are the assumptions behind production possibility frontier?
1) an economy's resources are fixed in both quantity and quality 2) the state of technology is constant 3) That 2 types of goods are produced 4) that the resources are completely mobile between the production of both goods hope that helps
What happens to supply when technology improves?
when technology improves, PPC (production possibility curve ) will shift rightward and the total production in an economy will increase.
How do you illustrate a production possibility frontier?
By using production possibility curve,country is producing both industrial and agricultural product using available resources, technology country operating inside production possibility curve shows the levels underdevelopment, which will be result under utilisation of resources ,poor technology. The country operating outside production possibility curve show the levels of development in economy, however, an economy can produce both industrial and agricultural using the resources available without effecting the production each . A shift from inside to outside it may be result of discovering of new resources, improved technology .
How production possibility curve helps in solving central problems of an economy?
How does ppc help in solving basic economic problems
What does the Production Possibility Curve tell us?
All the possible combination of two goods which an economy produce with given resources and technology.
What is a Representation of the possible ways an economy could use resources?
Production Possibility Frontier
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
