Improvements in technology will: 1. shift the production possibility curve (PPF)
ID: 1211691 • Letter: I
Question
Improvements in technology will:
1. shift the production possibility curve (PPF) out away from the origin..
2. make the production possibility curve flat
3. make points that were feasible to produce now infeasible to produce
4. shift the production possibility curve in toward the origin.
When economists want to describe how much an economy can produce with a given amount of resources, they use a model known as
1. the positive model
2. the normative model
3. comparative advantage
4. the production possibility frontier
Assume that we have a production possibility frontier (PPF). Point A lies inside (to the left of) the frontier. Points B and C are located along the frontier, and Point D is located outside (to the right of) the frontier. Which points represent efficient production points?
1. All points (A, B, C, and D) are efficient.
2. Points A, B, and C are efficient.
3. Points B and C are efficient.
4. Points B, C, and D are efficient.
What is measured along the horizontal axis in a graph of the production possibility frontier?
1. the amount of labor input
2. the amount of capital input
3. the quantity of one good produced
4. the quantity of one good exported
Suppose an economy is capable of producing, at point A, a combination of 10 bananas and 40 pounds of fish. If this economy can also produce a combination of 11 bananas and 45 pounds of fish at point B, we know point A is:
1. efficient in production
2. infeasible
3. on the production possibility curve
4. below the production possibility curve
Assume that there is a production possibility frontier (PPF). Point A lies inside (to the left) of the frontier. Points B and C are located along the frontier and Point D is located outside (to the right of) the frontier. Which of the following points represent feasible (attainable) production points?
1. All points (A, B, C, and D) are feasible.
2. points A, B, and C are feasible.
3. Points B and C are feasible
4. None of the points is feasible
Economists typically depict the production possibility frontier as a bowed-out curve rather than as a straight line in order to show that
1. the opportunity cost of producing a good rises as more is produced
2. the opportunity cost of producing a good declines as more is produced
3. resources used in the production of one good can be used in the production of another good
4. cost is always present
When economists want to describe how much an economy can produce with a given amount of resources, they use a model known as
1. the positivie model.
2. the normative model
3. comparative advantage
4. the production possibility frontier
What points are unattainable or not feasible on a production possibility curve?
1. points along the production possibility curve
2. points below the production possibility curve
3. points that touch the x-axis and that are also on the production possibility curve
4. points above the production possibility curve
As an economy moves from point to point along its production possibility frontier, what is changing?
1.the amount of resources available in the economy
2. the productivity of the resources available in the economy
3. the allocation of resources within the economy
4. the size of the labor force
Improvements in technology will:
1. shift the production possibility curve (PPF) out away from the origin..
2. make the production possibility curve flat
3. make points that were feasible to produce now infeasible to produce
4. shift the production possibility curve in toward the origin.
Explanation / Answer
Q1. Improvements in technology will shift the production possibility curve (PPF) out away from the origin. Because with same amount of resources higher quantity of both goods can be produced.
Q2. the production possibility frontier describe how much an economy can produce with a given amount of resources.
Q3. Points B and C are efficient.
Q4. the quantity of one good produced is measured along the horizontal axis in a graph of the production possibility frontier.
Q5. point A is below the production possibility curve.
Q6. points A, B, and C are feasible.
Q7. the opportunity cost of producing a good rises as more is produceD is the reason behind that depict the production possibility frontier as a bowed-out curve.
Q8. points above the production possibility curve are unattainable.
Q9. As an economy moves from point to point along its production possibility frontier the productivity of the resources available in the economy is changing. because different points on PPF consist different quantities of both the goods.