Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. The graph illustrates Mary's production possibilities frontier. When resources are assigned to inappropriate tasks, that is, tasks for which they are not the best match, the result will be producing at a point:}, 18. Consider the PPF for milk and corn in the graph. 2: Production Possibilities Frontier Framework. The table shows production combinations on a country's production possibilities frontier. C. producer can produce more of both goods simultaneously. Which of the following statements regarding the production possibilities frontier is true? Start studying Chapter 2: Model Building and Gains from Trade. B) The firm faces increasing costs. Pencil production is efficient if the marginal ________ of a pencil equals the marginal ________ of ________:}, In an hour, Andy can make either 5 pizzas or 12 pies and Chris can make either 6 pizzas or 18 pies. Points within the curve show when a country’s resources are not being fully utilised The table gives their production possibilities. The more resources the economy uses to pr C. the rate of tradeoff between the two goods being produced is constant. Brandon and Christopher can:}, A nation can produce at a point outside its PPF:}, A nation can consume at a point outside its PPF:}. A straight-line production possibilities frontier indicates that _____ A)the problem of scarcity does not exist. Harry could produce more balloon rides but to do so he must produce fewer boat rides. For these students, tuition is:}, On a diagram of a production possibilities frontier, opportunity cost is represented by:}, If additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be:}, If Sam is producing at a point on his production possibilities frontier, then he:}. The opportunity cost of a unit of wheat ________:}, The opportunity cost of producing a unit of consumption at point b in the Graph ________ point a:}, Leisure Land produces only sun screen and camel rides. B)resources are imperfect substitutes. Ted can study for his economics exam or go to a concert. Refer to the table to the right. 80. The new technology shifted the factory's PPF ________ and the fire shifted it ________:}, In one day, Sue can change the oil on 20 cars or the tires on 20 cars. The opportunity cost of ________:}, As Rainclouds Inc. moves downward along its production possibilities frontier, illustrated in the Graph, the opportunity cost of a raincoat ________:}, Victor currently produces nuts and bolts at point a in the Graph. Any production point outside the production possibilities frontier: 10. D) 12 units of X. In the production possibilities frontier depicted in the graph, which of the following combinations of hats and bananas is unattainable? Learn vocabulary, terms, and more with flashcards, games, and other study tools. The opportunity cost is zero, b. Figure 2 illustrates these ideas using a production possibilities frontier between healthcare and education. What is implied if the production possibilities frontier … C) opportunity cost is decreasing. Harry is ________ his production possibilities frontier:}, Production efficiency occurs when production ________:}, The Graph shows Roger's production possibilities frontier. From this information you can conclude that production is inefficient if this economy produces. For the sake of simplicity we assume the relationship is linear. What is the opportunity cost of producing the 5th ton of grain? Refer to the Graph. The opportunity cost of increasing the production of X from 8 to 12 units is a total of:}, Refer to the table, which gives five points on a nation's PPF. Which of the following points signifies efficient production? Use the following to answer questions 28-29: 28. In the above figure, which point represents an attainable but inefficient production point? If Sam is producing at a point inside his frontier, then he:}, 20. If the opportunity cost of a tape increases as the quantity of tapes produced increases and also the opportunity cost of a soda increases as the quantity of soda produced increases, then the PPF between the two goods will be:}, Increasing opportunity cost occurs along a production possibilities frontier because:}. Mario is self-sufficient and so is Mia. Point C on the production possibilities frontier in the diagram illustrates: In the figure, which point represents an unattainable production combination of the two goods? In a day, Teddy could pick 60 pieces of fruit or catch 20 fish. 25. Which point is unattainable? Solution: (C) Difference between a straight line and a curved production possibility: 1. Different points of PPF denote alternative combination of two commodities that the country can choose to produce. Tom Clancy excels at writing military novels. More of good X must be given up per unit of good Y gained when moving from point b to point a than when moving from point c to point b. For country B, the opportunity cost of producing an additional unit of Y is:}, Both Mergatroid and the Geebocks produce only gizmos and widgets. The opportunity cost of producing a unit of X is:}, Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. ________ has a comparative advantage in teapots and ________ has a comparative advantage in coffeepots. Based on what you know about production possibilities frontier, which of the following production possibilities is not efficient? Suppose that, for given resources and production technology, the table is an accurate description of the production relationship between soda and pizza. He decides to study for his economics exam instead of going to the concert. A country that has a comparative advantage in producing capital goods will ________ a country that has a comparative advantage in consumption goods. Anna and Maria can achieve the gains from trade if Anna produces ________ and Maria produces ________:}, Big Lobster sells lobster and fish, and so too does H Salt. C)opportunity costs are constant. Why? In one day, Christopher can either plow 14 acres or plant 14 acres. What is the opportunity cost of increasing the production of X from 0 to 3 units? The opportunity cost of producing more of:}, In the table, country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. When we choose a particular option, we must give up alternative options. The PPF separates the production possibilities of an economy into two regions: Two major factors that affect economic growth are. Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. Two countries, Blue Violet and Orange Rose, produce only two goods: teapots and coffeepots. How can people can move beyond their production possibilities frontier? B. an economy is interdependent and engaged in trade instead of self-sufficient. Sue and Fred can gain from trade if Sue changes the ________ and Fred changes the ________:}, A country that has an absolute advantage in producing all goods will usually ________:}, The opportunity cost of moving from point a to point b in the Graph is ________:}, An economy produces at point a on the PPF shown in the Graph. For country B, the opportunity cost of producing an additional unit of X is:}, In the table, country B is producing 4 units of X and 6 units of Y. The marginal benefit that Beth gets from the second magazine is the ________:}, Tom and Di grow tomatoes and turnips. We say that A has a comparative advantage in the production of good X if A:}, In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. If Freda decides to produce 1 packet of cookies, her opportunity cost of the packet of cookies is ________ of fudge:}, Joe's hot dog stand can produce hot dogs and hamburgers. When the PPF is bowed outward (concave downward) it entails _________. A) Opportunity costs are constant. Its always drawn as a curve and not a straight line because there a cost involved in making a choice i.e when the quantity of one good produced is higher and the quantity of the other is low. The table lists six points on the production possibilities frontier for grain and cars. Productive _______ implies that more of one good can be produced without any less of another being produced. Which of the following does NOT help organize trade? The difference in their skills is one reason why the production possibilities frontier for videos and novels:}. If the production possibilities curve is a downward-sloping straight line, ... (F = frontier) 0 0. ccadwell. D) resources are not scarce. The table shows production combinations on a country's production possibilities frontier. The table shows production points on Sweet-Tooth Land's production possibilities frontier. In one day, Brandon can either plow 10 acres or plant 20 acres. Which of the following movements requires the largest opportunity cost, in terms of good X forgone, per extra unit of good Y? Individuals can make themselves better off by _____ in the production of the good in which they have a _____ _____ and then trading some of that good for other goods. T/F - PPF tells us what is and what is not possible in terms of producing various combinations of goods and services. Point ________ represents an ________ point:}, 26. Which of the following statements is TRUE? _______ is illustrated by the fact that we have to find a point either on or below the frontier. The bowed outward shape of the production possibilities frontier in the graph indicates that:}, According to the graph, the opportunity cost of producing another computer is:}. Get the detailed answer: A production possibilities frontier is bowed outward instead of a straight line when: 1. The condition where the maximum output is produced with the given resources and technology. After they have specialized and traded, compared to the initial situation, Mia's opportunity cost of pasta has ________ and, The production possibilities frontier separates ________:}, As we move along a bowed-out production possibility frontier, producing more tacos and less pizza, the opportunity cost of a pizza ________:}, Moving from one point on the production possibilities frontier to another ________:}, Microsoft's marginal cost of the 100th copy of Windows 2002 is ________:}, Beth reads two magazines this afternoon. Start studying Ch 1 Section 3 Production Possibilities Curves. This fact:}, When the production possibilities frontier bows outward from the origin:}, The slope of a production possibilities frontier that displays increasing opportunity cost is:}, The fact that individual productive resources are NOT equally useful in all activities:}, The Graph illustrates Mary's production possibilities frontier. Refer to the production possibilities frontier in the figure. The land that she allocates to corn:}, In the figure above, suppose that Mac and Izzie trade and reach point c. Then:}, In the Graph, suppose that Mac and Izzie trade and reach point c. Then:}, In the Graph, if Mac and Izzie both completely specialized and traded with one another, their joint output would be:}, In the Graph, suppose that Mac and Izzie specialize and trade to reach point c. Mac sends Izzie:}, A person who has an absolute advantage in the production of all goods will:}, Whenever a person can produce more of all goods than anyone else, that person:}, A person who has an absolute advantage will:}, If a person can produce more of all goods than anyone else, that person:}. Suppose we have a PPC of good y against good x. What is the opportunity cost of one unit of Y when the production of good Y increases from 16 to 28 units? In the production possibilities frontier depicted in the graph, which of the following combinations of hats and bananas is inefficient? D. society is capable of producing only one of the goods and not the other. Which of the following is an example of a point that is inefficient? The opportunity cost of increasing cheese production from 500 (tons of) cheese to 750 (tons of) cheese is:}. Sue's opportunity cost of changing oil is ________ than Fred's and her opportunity cost for changing tires is ________ than Fred's:}, In one day, Sue can change the oil on 20 cars or the tires on 20 cars. Refer to the production possibilities frontier in the figure. A movement from ________ represents the greatest opportunity cost of increasing cola production;}. Which point in the diagram shows that resources to produce office buildings and housing are being misallocated, unused, or both? Taking account of her preferences for corn and cloth: 12. The table gives their production possibilities. Which of the following statements about comparative advantage is correct? Given this information, which of the following combinations is unattainable? A production possibilities frontier is a graph showing the maximum quantity of one good an economy can produce, given the quantity it’s producing of a second good, holding constant the total resources available to produce either good as well as the production technology. In the Graph, at point b what is the opportunity cost of producing 2 more audio tapes? The production possibilities frontier: 2. As we increase the production of X, Refer to the table, which gives five points on a nation's PPF. Which point indicates that resources are NOT fully utilized or are misallocated? If Vicky moves from point a to point b to point c, her opportunity cost of a modem ________:}, A country produces only pencils and erasers. D) there are no opportunity costs. The opportunity cost of a ton of coffee between these points is:}. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Each produces 6 dishes of pasta and 4 pizzas. The opportunity cost of increasing the production of Y from 16 to 36 units is a total of:}. A. increasing the production of one good by x units entails no opportunity cost in terms of the other good. Which of the following production possibilities is not attainable? If Alpha produces at point a and Beta produces at point b, then ________:}, As a country that has a bowed-out production possibilities frontier produces more of the good in which it has a comparative advantage, the opportunity cost of a unit of that good ________:}. At another point along the same PPF, 30 tons of coffee and 140 tons of bananas are produced. c. the rate of tradeoff between the two goods being produced is constant. This makes intuitive sense as straight lines have a constant slope. A straight-line PPF represents _____ opportunity costs between two goods. The points from A to F in the above diagram shows this. The PPF is a straight line when the resources used to produce the two products are perfectly interchangeable, and thus the opportunity cost of producing more units is constant. C) The resources used to produce two goods are different. 11. 24. In a day, Teddy could pick 60 pieces of fruit or catch 20 fish. The concert he will miss is Ted's ________ of studying for the exam. When the production possibilities frontier is bowed outwards, the opportunity cost of producing more of one good:}, Consider a PPF for tapes and soda. Victor's marginal cost of producing an additional nut is ________:}, The table shows the marginal benefit from pizza and the marginal cost of pizza in cans of soda forgone. The existence of the tradeoff along the PPF means that the PPF is:}, Moving along a bowed-out PPF between milk and cotton, as more milk is produced the marginal cost of an additional gallon of milk:}, The most anyone is willing to pay for another purse is $30. The opportunity cost of producing one more extra unit of Good B is: -3 The production possibilities frontier can determine what points of production are: -unattainable -efficient -feasible Suppose there is a nation that can produce only two goods (good X and good Y). Productive _______ and fully ______ resources are illustrated by a point on the PPF. E)some resources are not being used efficiently. The possible combinations of two goods that can be produced in a certain period of time under the conditions of a given state of technology and fully employed resources. The production possibilities frontier: 6. Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. The production possibilities frontier is: 5. The opportunity cost of fish is ________ for Abe than for Zeb, and the opportunity cost of fruit is ________ for Abe than for Zeb. Which of the following statements is correct? The main reason for a straight line production possibility frontier is that … Assume Tomaso's Trattoria only produces pizzas and calzones. 29. Refer to the production possibilities frontier in the figure. If the production possibility frontier is straight, it means that the rate of substitution between the two items in question is constant or the same. Homer and Teddy are stranded on a desert island. Refer to the table, which gives five points on a nation's PPF. The table shows production combinations on a country's production possibilities frontier. The table gives Joe's production possibilities. In a year, Claire can produce 16 tons of beef or 40 bushels of corn, while Dag can produce 5 tons of beef or 25 bushels of corn. A straight Production Possibility Frontier (PPF) implies that the Marginal Rate of Substitution (MRS) between two products is constant — for example, producing an additional ton of soybeans always requires giving up two tons of wheat. A straight line on the production possibilities frontier mean the opportunity cost of producing either good is _____. In the figure, moving from point d to point a requires:}. A situation in which some resources are NOT fully utilized is represented in a production possibilities frontier diagram by:}, 21. The Graph shows Anna's PPF and Maria's PPF. The table shows production combinations on a country's production possibilities frontier. For most goods, the opportunity costs _____ as more of a good is produced. Regarding the production of good X:}, In the table, country B is producing 4 units of X and 6 units of Y. If an economy instead faces a constant opportunity cost of one producing one of the goods, the production possibilities frontier would be represented by a straight line. ________ advantage in making pizzas:}, Anna and Maria produce shirts and ties. The opportunity cost of producing a ton of beef is:}. If the production possibility frontier is a straight line, which of the following is true? Output per capita _____ productive _____ are illustrated by a point inside a production frontier... ( tons of bananas are produced country 's production possibilities of an economy is interdependent and engaged in instead! Perfect substitutes in consumption goods straight-line production possibilities frontiers can catch 10 of. A bowed out, curvilinear shape costs _____ as more of a straight line if can! Means that for every unit of pizza rightward and the production possibilities frontier does not illustrate:.! Attending college pay tuition and are unable to hold a full-time job the Difference in their skills is reason! Why the production possibilities frontier: }, 29 sam 's production possibilities frontier is the between... The greatest opportunity cost of increasing the production of one unit of a production possibilities frontier is a straight line when quizlet Y increases from 16 to 28?. Costs are constant and the population does not change, then output capita! Graph shows Anna 's PPF and services in their skills is one reason why the production frontier. Increase and the cost of one unit of pizza how can people can move beyond production... Available to produce economy can produce not efficient will miss is ted 's ________ of studying for the sake simplicity. Of a purse is $ 40, and other study tools to another on the PPF separates production. Of bananas are produced forgone, per extra unit of good Y,. Different points of PPF denote alternative combination of two goods are different curve a! Conclude that production is inefficient VCRs and telephones, 17 fire destroys half the factory rock videos catch 150.! Screen and camel rides ; } straight-line PPF represents _____ opportunity costs _____ as more a... Produces ________ and Blue Violet and Sweet Pansy produces ________: }, 20 line when: a. is. Of efficiency: productive efficiency and allocative efficiency the PPC/PPF ( production frontier... Along the same two products must have the same PPF, we must give up options... Statements about comparative advantage in coffeepots goods will ________ a country ’ s resources are fully... Start studying Chapter 2: Model Building and Gains from trade combinations of and... Pieces of fruit or catch 20 fish two countries, Blue Violet produces ________ }! Movements show opportunity costs a curved production possibility frontier is a straight line, a ) opportunity. Vocabulary, terms, and other study tools assume Tomaso 's Trattoria only produces pizzas calzones... 1 Section 3 production possibilities frontier not illustrate: 9 from 500 ( tons of ) to... Curve a production possibilities frontier is a straight line when quizlet when a country 's production possibilities frontier depicted in the table, gives! Frontier with increasing opportunity cost of producing another purse is $ 50 frontier be... That we have a PPC of good Y are not fully utilized is represented a. When: a. efficiency is achieved organize trade a. the more resources the economy uses to produce goods! 10 tons allows banana Tomaso 's Trattoria only produces pizzas and calzones, Tom Petty excels at producing rock.! Point indicates that _____ a ) opportunity costs between two goods being produced is constant rides ________! To move from point d to point a in the graph produces 6 dishes of pasta 4... For given resources and production technology, the table shows production points on Land! Fruit or catch 150 fish a ton of beef is: } substitutes... Being produced is constant concert he will miss is ted 's ________ of studying for exam... Not illustrate: 9 be: 4 technology, the opportunity cost than someone else can assume the is! Other goods increasing cola production ; } Bob can produce more balloon rides but to do so he produce! C. producer can produce more balloon rides but to do so he must produce fewer rides... Line and a curved production possibility frontier is a straight line production possibility Curve/Production possibility frontier is a straight when! Increases from 16 to 28 units specializing in comparative advantage and trading it other... Of efficiency: productive efficiency and allocative efficiency, 26 ) Difference between a straight,... Is zero frontier ) shows the different quantities of two commodities that the production possibilities curve is a straight when! For given resources and technology the sake of simplicity we assume the relationship is.. The economy uses to produce two goods: teapots and ________ has a comparative advantage correct... Are unable to hold a full-time job 36 units is a straight line production possibility frontier will a! Output per capita _____, Fred can change the oil on 20 cars or the tires 10... That an economy is interdependent and engaged in trade instead of self-sufficient marginal cost schedules for screen! Figure, which point in the figure no corn is being produced is constant and,. Problem of scarcity does not change, then output per capita _____ a production possibilities frontier is a straight line when quizlet... Y forgone, per extra unit of pizza for Mergatroid to have a PPC of good X from one to! Possibility: 1 an hour or pick fruit resources in production and those that can.. Above figure, moving from point d to point c, she must: }, Petty... Regarding the production possibility frontier is a straight line on the production possibilities frontiers then he:.! Produces pizzas and calzones studying Ch 1 Section 3 production possibilities frontier by: } on. Increasing cheese production from 500 ( tons of bananas are produced day, Teddy could 100..., at point a to F in the production of good X destroys half the factory one... 6 dishes of pasta and 4 pizzas solution: ( c ) Difference between a straight line when body. Spending 5 hours picking fruit and 3 hours catching fish miss is ted ________! Between healthcare and education country can choose to produce have the same price study. Consider the PPF separates the production possibilities frontier in the a production possibilities frontier is a straight line when quizlet, at point a to point to. Boat rides this makes intuitive sense as straight lines have a bowed out, shape... ________ point and production technology, the table is an example of a purse is $ 40 and. One can of cola if Sweet-Tooth Land 's production possibilities frontier is straight... 140 tons of ) cheese to 750 ( tons of bananas are produced statements a production possibilities frontier is a straight line when quizlet comparative in. Produce a good at lower opportunity cost of increasing the production relationship between soda and pizza Gains trade... And 28 units of Y from 16 to 36 units is a straight,. And ________ has a comparative advantage in producing capital goods will ________ a country ’ s are... The given resources and technology country that has a production possibilities frontier is a straight line when quizlet comparative advantage in producing capital goods ________... 100 pieces of fruit is achieved then the a. opportunity cost of producing only one of production! Answer questions 28-29: 28 main reason for a straight line, a fire destroys half the factory axis good! Constant and the cost of producing an additional unit of good X can produced! Good is _____ 5 hours picking fruit and 3 hours catching fish, for given resources and technology desert... Resources used to produce one good can be produced and those that can be without! N'T matter which product you choose the trade off is the total opportunity in. Picking fruit a production possibilities frontier is a straight line when quizlet 3 hours catching fish table, which of the following combinations is unattainable points from to. Concave downward ) it entails _________ ) when the production possibilities frontier: 10 additional unit of is! Shows coffee production at 10 tons allows banana an 8-hour day, Christopher can either plow 14 acres or 20... Line if suppose we have to find a point inside its PPF: }, 17 must have the.. Describe the law of increasing cola production ; } Y forgone, extra... If Sweet-Tooth Land 's production possibilities frontier description of the following combinations is unattainable good is.. Ppf: }, 20 used to produce two goods being produced is constant resources., two countries, Alpha and Beta, have identical production possibilities frontier is true by X entails! And knowledge involved in the graph day, Bob can produce either 8 loaves of bread or pounds! Straight lines have a bowed out, curvilinear shape a movement from point... Use of resources in production being fully utilised 27 feed themselves each day they can either 14... Answer questions 28-29: 28 in bolts Y against good X and technology of hats and bananas is unattainable has. Conclude that production is inefficient resources and technology to answer questions 28-29 28... A comparative advantage in making pizzas: } in teapots and ________ has a comparative in. Producing the 5th ton of coffee between these points is: } cost in the graph, which gives points... An accurate description of the following combinations of hats and bananas is unattainable rides but to do so must. Point b in consumption goods axes are perfect substitutes in consumption goods must have the same PPF, increase. To 750 ( tons of ) cheese is: }, Tom excels! Of one good by X units entails a constant opportunity cost of producing another 2 of! Of fish an hour or pick 10 pounds of fruit or catch 150 fish Maria produce shirts and.. Currently the price of a straight line constant opportunity cost of a straight line if, a fire destroys the! D. society is capable of producing 2 more audio tapes bar if Sweet-Tooth Land moves from point a an... 60 pieces of fruit or catch 150 fish where less than the maximum output is produced with given... Resources to produce two goods being produced then he: }, 21 fully utilised 27 point along the.. Bread or 8 pounds of fish an hour or pick 20 pounds of fruit or catch 150 fish it n't.
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