The following diagram (21.2) illustrates the production possibilities set out in the above table. d. represents an increase in resources. D) the law of decreasing relative cost. 85. A. the presence of technological change. A production possibility frontier is used to illustrate the concepts of opportunity cost, trade-offs and also show the effects of economic growth. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. 35) A production point that lies outside the Production Possibilities Curve (PPC) A) denotes inefficiency. B) indicates unemployment. The production possibilities curve is also called the PPF or the production possibilities frontier. Production points inside the curve show an economy is not producing at its comparative advantage. c. requires more resources than are presently available. all points on the production possibilities curve: zCirurgia Realizada (Pós-OP) / all points on the production possibilities curve: 1 de janeiro de 2021 Production Possibilities. Points within the curve show when a country’s resources are not being fully utilised https://www.khanacademy.org/.../v/production-possibilities-curve A point lying inside the production possibilities curve a. indicates that resources are not being fully or efficiently used. 34) All points inside the production possibilities curve indicate. Since the production possibilities frontier represents all of the points where all resources are being used efficiently, it must be the case that this economy has to produce fewer guns if it wants to produce more butter, and vice versa. C) the law of increasing relative cost. In this diagram AF is the production possibility curve, also called or the production possibility frontier, which shows the various combinations of the two goods which … B. that resources are imperfectly substitutable among alternative uses. The PPF simply shows the trade-offs in production volume between two choices. If a point falls inside the production possibility curve it means either the resources are under utilised or there is unemployment in the economy. b. illustrates resources being used to their fullest potential. A) a lack of sufficient supply. Any point inside the production possibilities curve indicates:? Production possibility curve shows the different combinations of the production of two commodities that can be achieved in an economy given the resources and technology which are to be fully utilized. All choices along the curve shows production efficiency of both goods. The slope of the production possibilities frontier represents the magnitude of this tradeoff. 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