a production possibilities frontier is a straight line when a. the more resources course hero

When is the production possibilities frontier a straight line?

A production possibilities frontier is a straight line when a. the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. b. an economy is interdependent and engaged in trade instead of self-sufficient.

Why are some choices inside the production possibilities frontier productively inefficient?

However, any choice inside the production possibilities frontier is productively inefficient and wasteful because it is possible to produce more of one good, the other good, or some combination of both goods.

Why is the production possibilities frontier for healthcare and education curved?

The reason for these straight lines was that the slope of the budget constraint was determined by the relative prices of the two goods in the consumption budget constraint. However, the production possibilities frontier for healthcare and education was drawn as a curved line.

When the production possibility frontier is a straight line?

What Does It Mean When the PPF Is a Straight Line? A straight line occurs if the opportunity cost remains constant. In this scenario, the opportunity cost of producing two goods is projected as being equal regardless of where you are along the line.

What if the production possibility curve is a straight line?

If production possibility curve is a straight vertical line it means that the production of one good is fixed whereas the production of the other good is unrestricted. Thus it goes on increasing. this means that the resources are unlimited for one of the goods and are resources are fixed for one good.

Why is the production possibility frontier not a straight line?

1 Answer. 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. This is known as opportunity cost.

Why is a production possibilities frontier typically drawn as a curve rather than a straight line Brainly?

This is because its slope is given by the relative prices of the two goods. In contrast, the PPF has a curved shape because of the law of the diminishing returns.

Can production possibility curve be a straight line give an example?

Example: A company is involved in the production of goods such as Cheese and Butter. For every quantity of the butter relinquished, there is production of an extra quantity of Cheese. For this scenario, the PPC will be a straight line curve.

What is meant by production possibility frontier?

The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.

Why is a production possibilities curve typically drawn as a curve rather than a straight line?

A production possibilities frontier is typically drawn as a curve rather than a straight line because of the law of diminishing returns.

What is the production possibilities frontier quizlet?

Production possibilities frontier (PPF) 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.

How does a production possibilities frontier show efficient use of resources?

A production possibilities frontier shows efficient uses of a country's resources because it shows that the country is using all of their resources efficiently to maximize production.

Why is the production possibility frontier downward sloping?

The downward slope of the production possibilities curve is an implication of scarcity. The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. Such an allocation implies that the law of increasing opportunity cost will hold.

What best explains the shape of the production possibility frontier in the graph?

What best explains the shape of the production possibility frontier in the graph? Answer: Some resources used to produce one of the goods are not as productive when they are used to produce the other good.

What would it mean to an economy if a PPF were curved instead of straight?

What would it mean to an economy if a PPF were curved instead of straight? The tradeoffs in that economy would not be the same at every point on the curve. What does every point outside a PPF represent. an unattainable production possibility. When a country's economy grows, what happens to a PPF?

Which specific choice along a production possibilities frontier reflects the mix of goods society prefers?

The specific choice along a production possibilities frontier that reflects the mix of goods society prefers is the choice with allocative efficiency. The curvature of the PPF is likely to differ by country, which results in different countries having comparative advantage in different goods.

Why do countries have different opportunity costs of producing a specific good?

Countries tend to have different opportunity costs of producing a specific good, either because of different climates, geography, technology or skills.

What is the PPF graph?

The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.

What happens to the economy as resources grow over a period of years?

In the second case, as resources grow over a period of years (e.g., more labor and more capital), the economy grows . As it does, the production possibilities frontier for a society will shift outward and society will be able to afford more of all goods.

What happens when a greater quantity of one good increases?

The graph shows that when a greater quantity of one good increases, the quantity of other goods will decrease. Point R on the graph represents the good that drops in quantity as a result of greater efficiency in producing other goods.

Is the shape of the PPF from point A to point B flat?

For this reason, the shape of the PPF from A to B is relatively flat, representing a relatively small drop-off in health and a relatively large gain in education.

Does the production possibilities frontier have enough resources to produce outside the PPF?

Society can choose any combination of the two goods on or inside the PPF. But it does not have enough resources to produce outside the PPF.