C) technological progress. b. 20) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. Economic growth is represented on a production possibilities frontier (PPF) by the PPF a. getting steeper. the fact that there are only two goods in the diagram. N��c� �C��)�������,k� �bS�� D) the fact there Devarani and Saras run a business that involves setting up and testing computers. 0000033197 00000 n Scarcity is a situation in which resources available for the satisfaction of wants are less than the resources required for the satisfaction of human wants. D) the fact 43. b�Ӱ��S'����@#&09p�L \A.�? 0000002203 00000 n Scarcity is represented on the production possibilities frontier by:} A) the fact that there are only two goods in the diagram. Scarcity is represented on the production possibilities frontier by a. the amount of the good on the horizontal axis forgone. The PPF for country 1 is necessarily closer to the origin (or further to the left) than the PPF for country 2. c. If country 1 is productive d. D) the fact there :)�!�=�%��?�������J�JIE E�㌡��X Explain how the following can be represented in a PPF framework: the finiteness of resources implicit in the scarcity condition Scarcity is illustrated by the existence of the frontier: if there were unlimited resource availability, there would be … Along its production possibilities frontier (PPF) an economy can produce 0X and 15Y, 10X and 10Y, 20X and 5Y, or 30X and 0Y. 0000000776 00000 n Scarcity is represented on a production possibilities frontier figure by the fact there are attainable and unattainable points If the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources allocatively The bowed-out shape of the On a production possibilities frontier (PPF) that shows the trade-off between consumer goods and capital goods given a fixed amount of labor, unemployment is illustrated by: c. a point within the frontier. D)the fact there are 13) the fact there are attainable and unattainable points. Scarcity is represented outside of the frontier and enables us to visually see the limit of product as a line. Refer to the table below to answer Question 9 and 10. C) technological progress. the amount of the good on the horizontal axis forgone. ��ֻ`���Q�`����f��b�Zg.�t ��@���. C) technological progress. C) technological progress. The PPF is called a frontier or a boundary line because any point on the curve represents full employment 0000023481 00000 n 0000000016 00000 n 0000001566 00000 n A production possibilities curve shows the combinations of two goods an economy is capable of producing. Scarcity is the root cause of economic problem : Scarcity is a relative concept. 13)Scarcity is represented on the production possibilities frontier by A)the fact that there are only two goods in the diagram. B) the fact that there are only two goods in the diagram. �"����` %%EOF 0000032864 00000 n On a production possibilities curve, unemployment is represented by: a. a point on the production possibilities curve. 13) Scarcity is represented on the production possi- D) is attainable B) the exchange of D) the fact 20) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. “If Mexico is currently operating at a point beyond its production possibilities frontier, then there are unemployed resources in Mexico.” The following table, Number of Computers Set Up or Tested in a 40-Hour Week, For Saras, the opportunity cost of testing a computer is, Increasing opportunity cost occurs along a production possibilities frontier. 0000003379 00000 n 13) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. Skill: Conceptual C) is attainable only if prices fall. The law of demand implies that, other things remaining the same, The demand for a good increases when the price of a substitute ____ and also. D) the fact The production possibilities frontier is used to illustrate the economic circumstances of scarcity, choice, and opportunity cost. 0000001939 00000 n 248 0 obj <> endobj The opportunity cost of increasing the production of laptops from 0 to 1 000 is 2 000 mobile phones, whereas increasing the production of laptops from 3 … C) makes her production possibilities frontier flatter. S��$�7L61�s�PR�s�����H��l�'�2j�:040py1N Econ Isle’s production possibilities are graphed to show its frontier, and then used to discuss the opportunity costs of its production and consumption decisions. The downward slope of the production possibilities curve is an implication of scarcity. 0000006562 00000 n 10) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. Topic: Production Possibilities Frontier B) is associated with unused resources. �=�oX��i& ����ۀ)���� J��� B) the fact that there are only two goods in the diagram. 0000002069 00000 n D) the fact startxref 0 Get step-by-step explanations, verified by experts. 0000001840 00000 n xref Answer: D Topic: Production Possibilities Frontier Skill: Analytical AACSB: Analytical Skills 22) On the vertical axis, the production possibilities frontier shows ________; on the horizontal axis, the production possibilities frontier shows ________. 0000007234 00000 n 20) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. B) the fact that there are only two goods in the diagram. B)technological progress. C)the amount of the good on the horizontal axis forgone. 3. 271 0 obj<>stream 0000002631 00000 n To describe the concept of the production possibilities frontier, assume that we live on an island that has only two cities (Lake and Desert), and two industries (cars and airplanes). On a production possibilities curve, growth is represented by: a. a movement down the production possibilities curve. 5) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. %PDF-1.4 %���� Given this information, which of the following combinations is. 0000002554 00000 n 20) Scarcity is represented on a production possibilities frontier figure by A) the amount of the good on the horizontal axis forgone. 0000023724 00000 n 13. H�T�Oo� ��~�9��pq�&ƋM��j{watM*ԃ߾�X7=���`ބ+����7����������HAj�)�jl-0�\o�ce� �. The slope of the production possibilities frontier represents the magnitude of this tradeoff. In terms of our production possibilities curve, this is represented by a point such as H 1 which lies inside the production possibilities curve.