Conclusion. The PPF is also referred to as the production possibility curve or the transformation curve. In other words, the economy can produce at any point on or inside the production possibilities frontier. The combination points of product A and product B that we can produce efficiently will form a concave curve, which we call the production possibility curve. b. on the curve represents full employment. In macroeconomics, the PPF is the point at which a … Along a production possibilities curve, an increase in the production of one good can be accomplished only by a. decreasing the production of another good. Production-Possibility Frontier delineates the maximum amount/quantities of outputs (goods/services) an economy can achieve, given fixed resources (factors of production) and fixed technological progress.Points that lie either on or below the production possibilities frontier/curve are possible/attainable: the quantities can be produced with currently available resources and technology. A point inside a production possibilities curve represents things that can be produced. d. none of the above. Points on the production possibilities curve thus satisfy two conditions: the economy is making full use of its factors of production, and it is making efficient use of its factors of production. When it is at full employment, it operates on the PPC. 1. A point inside a nation's production possibilities curve can represent: A) a recession. D) a technological advancement. A nation is producing at a point inside of its production possibility curve. An outcome is efficient if the economy is getting all it can from the scarce resources it has available. c. requires more resources than are presently available. c. outside the curve is currently unattainable. Also, any point inside the PPF is inefficient because at that point the output is greater than the output that the existing resources can produce. They are being over efficient. B. productivity has increased. Points inside the production possibility curve indicates that the society concerned is not making full and efficient use of its resources and consequently fewer needs and wants are satisfied than is possible. Any point inside a production possibilities curve is a. better than points on the production possibilities curve b. allocatively efficient but technologically inefficient c. associated with inefficient use of unemployment of some resources d. associated with movements along the production possibilities curve e. associated with constand opportunity costs. 01. of 09. Good Job! If a point lies inside the curve, this tells the company what? We conclude that attainable combination points are (on/inside/outside) the production possibilities curve. A movement along the production possibilities curve would imply that: A. the labor force has grown. B. can exist at any point on a production possibilities curve. The law of comparative advantage applies to exchange between. C. productivity has declined. The production possibilities curve is an illustration of what? d. the curve will begin to shift outward. a. its resources are not being used efficiently. If the country decides to ramp up its sugar production, using the existing fixed resources, it has to lower its pizza production. resources are unemployed. B) an increase in population size. inefficient. E) an improvement in … b. increasing the production of another good. c. holding constant the production of another good. d. can each be illustrated by a point outside the production possibilities curve. b. 9. A point outside the production possibilities curve represents a combination of goods that is. ANS: C PTS: 1 158. D. society has chosen a different set of outputs. Points within the curve show when a country’s resources are not being fully utilised unattainable. So like our simple example, we plot a point that is inside the production possibilities curve! (a)unattainable; attainable (b) the maximum possible; below the maximum possible (c) attainable; unattainable (d) below the maximum possible; the maximum possible. d. producing at a point on a corner of the curve. 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