14. If an economy is represented by a point inside its production possibilities curve: A. it can produce more of one product even if it does not produce less of another product. B. it can produce more of one product only if it produces less of another product. C. it cannot produce more of one product unless it stops producing the other product entirely. D. it cannot possibly produce more of one product, even if it produces less of another product.
Added by Loran L.
Step 1
The PPC represents all the possible combinations of two goods or services that can be produced within an economy, assuming all resources are fully and efficiently utilized. Points on the curve represent maximum production efficiency, while points inside the curve Show more…
Show all steps
Your feedback will help us improve your experience
Shu Naito and 72 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
5. If an economy is fully utilizing its resources, it can produce more of one product only if it: A. doubles manufacturing of the product. B. produces less of another product. C. adds more people to the labor force. D. reduces the prices of the most expensive products.
Rashmi S.
9. The supply curve will be more inelastic when: A. inputs to production are scarce. B. firms' response to a price change is limited by the limited capacity of their production facilities. C. a good has many substitutes. D. the firm is experiencing diminishing returns to a variable input.
Andrew D.
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. b. increasing the production of another good. c. holding constant the production of another good. d. producing at a point on a corner of the curve.
Majid B.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD