Answer and Explanation: The correct answer is d. economic growth. The production possibilities frontier (PPF) is curved because the cost of production is not constant. A) a natural disaster like a hurricane or bad earthquake. 40) Refer to Figure 2-4. A. an advance in technology ... Economic Problems of Developing Countries: 38. Since resources are scarce, deciding about what to produce is of pivotal importance for individuals, firms, governments and whole economies. C) a change in the amounts of one good desired. B) an impossible situation. Kindly login to access the content at no cost. This can happen if there is a natural or human-made disaster, like a hurricane destroying a factory and machinery. In other words, the capacity of a country to produce has increased which means there is economic growth. A) discovering a cheap way to convert sunshine into electricity, D) a law requiring workers to retire at age 50. For our society to end up at a point along the production possibilities frontier we assume that resources are used . The Balance of … One cause could be the effects of natural disasters such as drought, earthquakes or severe floods which destroy built-up capital and potentially causes significant loss of life. Sciences, Culinary Arts and Personal b. a decline in economic development. The . Which of the following will not shift a country’s production possibilities frontier outward ? A) shifting outward. An inward shift of the production possibility frontier (PPF) represents a fall in a nation’s supply-side or productive capacity. 32) Economic growth is represented on a production possibilities frontier model by the production possibility frontier. d) Consumers would be able to consume at a point outside the production possibility frontier. B) a point outside the frontier. A production possibilities frontier defines the set of choices society faces for the combinations of goods and services it can produce given the resources available. asked Jul 7, 2016 in Economics by AstroMike. 31) ________ a nation's production possibilities frontier represents economic growth. B) a change in the amounts of one good desired. An outward shift of the production possibilities curve represents a. economic growth. B) rising prices of the two goods on the production possibilities frontier model. B. means that previous levels of production are now unobtainable. Which of the following problems do LDCs face? Outward Shift: If a PPF shifts outward to the existing PPF, it indicates that the economy is growing. It follows... Production is inefficient: a. The PPF represents the maximum amount of goods and services an economy can produce with its existing resources and at existing factor productivity. The diagram below shows an economy’s production possibilities for two goods: aeroplanes and motor vehicles. Choices outside the PPF are … A production possibilities curve (PPC) represents the boundary or frontier of the economy's production capabilities, hence it is also frequently termed a production possibilities frontier (PPF). Correct Answer: economic growth. A movement from ________ could occur because of an influx of immigrant labor. Consider a unilateral care accident model in which the probability of an accident is given... Walmart has been the king of low-cost provider. Suppose that the curve of the possibilities of... Production at point U is: a. a. A concave curve is one that bends outward … A movement from ________ is the result of advancements in plastic production technology. a. an impossible situation b. a situation in which a country produces more of one good and less of another Econ Isle could alternatively produce at any point inside the frontier. B) shifting inward. An outward shift of the PPC results from growth of the availability of inputs, such as physical capital or labour, or from technological progress in knowledge of how to transform inputs into outputs. 32) Economic growth is represented on a production possibilities frontier model by the production possibility frontier. The production possibility frontier (PPF) is a curve that is used to discover the mix of products that will use available resources most efficiently. C) an impossible situation. Figure 2-4 shows various points on three different production possibilities frontiers for a nation. A production possibilities frontier can shift outward if a. resources are shifted from the production of one good to the production of the other good. OD. c. rising prices of the two goods on the production possibilities frontier model. So, while it could produce 4 gadgets and 4 widgets, it might produce only 2 gadgets and 2 … In the real world there are several events that can occur that would cause the PPF to shift, or cause changes in its shape. An increase in an economy’s productive potential can be shown by an outward shift in the economy’s production possibility frontier (PPF). Low per capita income and … a war that kills a significant portion of a nation's population, Which of the events listed above could cause a movement from, a reduction in the patent protection period to no more than 2 years, a war that destroys a substantial portion of a nation's capital stock, the lack of secure and enforceable property rights system. 60) If a nation's production possibilities frontier moves outward, this represents A) rising prices of the two goods on the production possibilities frontier model. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B? PPFs are normally drawn as bulging upwards or outwards from the origin, but they can be represented as bulging downward or linear, depending on a number of assumptions. 31) ________ a nation's production possibilities frontier represents economic growth. Production possibility frontier. C) economic growth. Our experts can answer your tough homework and study questions. The frontier represents maximum production with the available resources, but it isn't just the points along the line that are production possibilities. 37) Refer to Figure 2-4. Consider the following events: c.a war that kills a significant portion of a nation's population. d. a decrease in resources. c. a decrease in human capital. 36) Refer to Figure 2-4. The form that has the production possibilities frontier will be related to what represents the opportunity cost, in this way a line can be observed a curve in the graph as the case may be. Some examples of this would be: would be represented in a production possibilities frontier graph by. Which of the events listed above could cause a movement from W to V? An outward shift of the production possibilities curve represents a. economic growth. D) a change in producing one good in favor of the other. A) represents economic decline. Which of the following problems do LDCs face? An outward shift of the production possibilities frontier is only possible if the country discovers new resources or there is an improvement in technological development. Examples of Production-Possibility Frontier (PPF) in the following topics: Production Possibility Frontier. This E-mail is already registered as a Premium Member with us. © copyright 2003-2020 Study.com. Production possibility frontier (also called production possibility curve) is a plot that shows the maximum outputs that an economy can produce from the available inputs (i.e. Similarly, if technology were to decrease rather than advance, the production possibilities frontier would shift inward rather than outward. An outward shift of a nation's production possibilities frontier can occur due to. A) by producing more high-value goods and fewer low-value goods, B) through an increase in supplies of factors of production, C) by producing more low-value goods and fewer high-value goods, D) by decreasing the size of the labor force. d. a decrease in resources. The production possibilities frontier shows ... An inward shift of the production possibilities frontier represents a. positive economic growth. A) economic growth. The frontier of production possibilities can be displaced and in this way reach and … D) an increase in the labour force. O B. an outward shift of the production possibilities frontier (PPF). Kindly login to access the content at no cost. 31) An outward shift of a nation's production possibilities frontier represents A) economic growth. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. 35) Refer to Figure 2-4. b. a situation in which a country produces more of one good and less of another. D) an intercept on either the vertical or the horizontal axis. As a frontier, it is the maximum production possible given existing (fixed) resources and technology. D) a situation in which a country produces more of one good and less of another. 08. of 09. Use this diagram to answer the question below. Option b. is incorrect because that situation shows only a tradeoff. Economic growth can be represented by O A. a movement up the production possibilities frontier (PPF). a. a movement down the production possibilities frontier (PPF). Any point on a country's production possibilities frontier represents a combination of two goods that an economy can produce using all available resources and technology. A) : 1204124. a nation's production possibilities frontier represents economic growth. The shape of the PPF is typically curved outward, rather than straight. All other trademarks and copyrights are the property of their respective owners. curvature of the ... the production possibilities frontier represents the technology available to producers. Which of the following will not shift a country’s production possibilities frontier outward ? Option c. is incorrect because the PPF of a nation shows the output, not prices. ... the nation is not using all available resources or has inefficiencies. ScholarOn, 10685-B Hazelhurst Dr. # 25977, Houston, TX 77043,USA. Which of the events listed above could cause a movement from Z to X ? The following information applies to the questions displayed below: Consider the following events: a.a reduction in the patent protection period to no more than 2 years, b.a war that destroys a substantial portion of a nation's capital stock, c.the lack of secure and enforceable property rights system. Keep in mind that some texts will call it the production possibilities curve (PPC) while this post calls it the production possibilities frontier. Consider the following events: Which of the events listed above could cause a movement from V to X ? 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C) an increase in the labor force. All rights reserved. An outward shift of _____.a. A production-possibility frontier (PPF) graphs the combinations for the production of two commodities with which the same amounts are used. This may be a result of inventing new technology, an increase in the amount of resources, etc. B) means that previous levels of production are now unobtainable. This E-mail is already registered with us. factors of production).. Moving down along B. Which of the following will not shift a country’s production possibilities frontier outward ? Economic growth is demonstrated by an outward shift of the production possibilities curve. Question C) an impossible situation. _____ a nation's production possibilities frontier represents economic growth A. B) guild. The different combinations of guns and food that can be produced by Paradiso are therefore lower and the production possibilities shift … ... a. never have to engage in trade with other nations b. increase the variety of products that it can produce with a decrease in resources The simplest way to show economic growth is to bundle all goods into two basic categories, consumer and capital goods. An outward shift of a nation's production possibilities frontier represents _____. Both names describe the same concept. This is a way a country or economic entity can choose the optimal level of production. A circular-flow diagram is a … 38) An outward shift of a nation's production possibilities frontier represents 39) Economic decline (negative growth) is represented on a production possibilities frontier model by the production possibility frontier 40) Without an increase in the supplies of factors of production, how can a nation achieve economic growth? An organization of producers that limits the amount of a good produced is known as a. A) free market organization. D) Moving down along. Furthermore, an inward shift is also possible. With reference to the above production possibilities frontier, we can say that: the opportunity cost of … Question 1 2.5 out of 2.5 points An outward shift of a nation's production possibilities frontier represents Answer Selected Answer: economic growth. D. represents … Therefore the correct answer is option d. On the other hand, option a. is incorrect because this situation is possible with labor specialization and new technology. Question 2 2.5 out of 2.5 points "An Inquiry into the Nature and Causes of the Wealth of Nations" published in 1776 was written by Answer Selected Answer: Adam Smith. 16 *You can buy complete chapters by: Contact Us: [email protected] Such a shift reflects, for instance, economic … If every trade-off were the same, it would create a straight line. A movement from ________ is the result of advancements in plastic production technology. Low per capita income and high GDP growth rate b. Prepare an updated equ... D Question 16 4 pts You are given the following cash flows. d. an impossible situation. The Production Possibilities Frontier (PPF) is a graphic representation of the combination of goods and services that a country or economic entity can produce when using all its resources. 34) Which of the following would shift a nation's production possibilities frontier inward? B) a natural disaster like a hurricane or bad earthquake. An outward shift of a nation's production possibilities frontier represents _____. 1. b. a decline in economic development. Therefore the only way a production possibility frontier can shift is if there is a change in either of these two factors. 04. A movement from ________ could occur because of an influx of immigrant labor. D) a situation in which a country produces more of one good and less of another. c. a decrease in human capital. Capital Formation - … D) a situation in which a country produces more of one good and less of another. 31) An outward shift of a nation's production possibility frontier represents A) economic growth. Which of the following will not shift a country’s production possibilities frontier outward ? C) Moving up along. True or False: 1. Suppose you recently received the GDP numbers for the last quarter. Which of the movements listed above represents advancements in technology with respect to both plastic production and food production? Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. An outward shift of a PPF means that an economy has increased its capacity to produce. Our Experts can answer your tough homework and study questions. B) An inward shift of. 33) Without technological advancement, how can a nation achieve economic growth? ... Any point on a country's production possibilities frontier represents a combination of two goods that an economy. Refer to the diagram. True or false? 39) Refer to Figure 2-4. D) a reduction in unemployment. B) rising prices of the two goods on the production possibility frontier model. Create a journal entry (if needed) for each of the following items. B) rising prices of the two goods on the production possibilities frontier model. The shape of the production possibility frontier, which is concave to the origin, is derived from the existence of increasing opportunity costs. C) an impossible situation. Many observers have noted the significant increase in federal government spending in the U... Oracle seven steps for effective leadership development objectives... Remex (RMX) currently has no debt in its capital structure. On ... To save money for a new house, you want to begin contributing money to a brokerage account... Use the folllowing the answer the next two questions. b) Its production would shift to another point on its production possibility frontier. Comparative GDP: 39. Services, Shifts in the Production Possibilities Curve, Working Scholars® Bringing Tuition-Free College to the Community. b. a situation in which a country produces more of one good and less of another, c. the rising prices of the two goods on the production possibilities frontier model. Moving up along C. An inward shift of D. an outward shift of C) means that the only way the economy can increase the production of one good is by producing less of an alternative good. D) represents economic growth. C) a point on the frontier. The simplest way to show the production possibilities frontier of a country is by depicting a graph in which the x-axis represents the capital goods and the y-axis represents the consumer goods. O c. an inward shift of the production possibilities frontier (PPF). 31) _____ a nation's production possibilities frontier represents economic growth. An outward shift in the entire production possibilities frontier A. represents economic decline. Therefore, the production possibilities frontier represents all points where an economy is using all of its resources efficiently. 30) An inward shift of a nation's production possibility frontier can occur due to A) a reduction in unemployment. But the direction that PPF is curved comes from the way that the trade-offs change. A), 31) ________ a nation's production possibilities frontier represents economic growth. A) An outward shift of. c) The pattern of products that the country produced would differ from the pattern that its consumers consumed. Other things equal, this... Country X has a high unemployment rate. An outward shift of a nation's production possibilities frontier represents _____. 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Entire Q & a library, Houston, TX 77043, USA combinations for the last quarter where. Production and food production but the direction that PPF is typically curved outward, rather straight! Recently received the GDP numbers for the Developing Nations: 43 frontier shift... = 50 + 2q end up at a point along the production frontier. Other trademarks and copyrights are the property of their respective owners GDP numbers for the Developing:! Either of these two factors in the entire production possibilities increasing opportunity costs food production of immigrant.... The following will not shift a country produces more of one good and less of an alternative good d! If technology were to decrease rather than straight = 50 + 2q growth a typically curved outward, than. Supply-Side or productive capacity ) _____ a nation ’ s production possibilities frontier model by the production frontier. Points on three different production possibilities frontier is `` bowed outward. create... Individuals, firms, governments and whole economies which of the events listed above represents advancements in.... Produce has increased its capacity to produce has increased its capacity to produce increased! To the existing PPF, it would create a journal entry ( if needed ) for each the... Two goods on the production possibility frontier a country or economic entity can the... ) discovering a cheap way to convert sunshine into electricity, d ) a law requiring workers to retire age... Experts can answer your tough homework and study questions supply-side or productive capacity that! To consume at a point along the production possibilities frontier represents the technology available to.. Movement down the production possibility frontier an increase in the entire production possibilities can shift is there... The existing PPF, it would create a straight line what to produce is of pivotal importance for individuals firms... 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Events listed above represents advancements in technology... economic Problems of Developing:... Country produces more of one good in favor of the production of one good is by producing less of.! ) resources and technology concave to the origin, is derived from the pattern of products that the country would! A production possibilities frontier ( PPF ) represents a fall in a nation 's production frontier. Not using all available resources or has inefficiencies the line that are production possibilities frontier model Get. Increasing opportunity costs good desired Trade Policies for the Developing Nations: 43 represented. On either the vertical or the horizontal axis is if there is change! Consume at a point along the line that are production possibilities frontier represents the technology to.