Become a Study.com member to unlock this Which of the following statements is true of production possibility curves and trade between nations? © copyright 2003-2020 Study.com. 2 … The opportunity cost of producing more machines is constant. a. The PPF illustrates the trade-offs that exist in the production of goods. During a debate on the floor of the U.S.â Senate, Senator Creightonâ states. $72,141 Maryâ Krawiec's explicit costs are equal to her Explicit expenses + Property taxes + Water bill. D) None of the above because all of the above statements are false. Trade based on the law of comparative advantage enables a country to consume outside its PPF. D)None of the above because all of the above statements … The production of food does not involve opportunity costs since people must eat. 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Suppose that Canadian farmers can grow wheat more cheaply than can U.S. farmers. â(Note: By attendingâ college, the student will have to work fewer hours but will stay in his currentâ apartment.). The following statements refer to the community or social indifference curves. The island of Atlantis has an decreasing opportunity cost of producing potatoes and the production possibility … C)Points outside the frontier are attainable. Resources are completely adaptable to alternative uses. Other. John can decorate either 10 ice-cream cakes or 4 wedding cakes; Mary can decorate either 8 ice-cream cakes or 2 wedding cakes. A. At theâ auction, a bank was seeking to sell a foreclosedâ property: a large Victorian house suffering from years of neglect in a neighborhood in which many properties had been on the market for years yet remained unsold. Comparative vs. Absolute Advantage in Microeconomics, Absolute Advantage in Trade: Definition and Examples, Gains From Trade and the Benefit of Specialization, New Trade Theory (NTT): Definition & Analysis, What is Short-Run Production? - Definition & Examples, Tariffs and Quotas: Effects on Imported Goods and Domestic Prices, Marginal Product of Labor: Definition, Formula & Example, Shifts in the Production Possibilities Curve, What Is Globalization of Business? c. The production possibilities frontier is never bowed outward. B. The following table lists the costs incurred by a student attending a public university for one semester. a) The production possibility frontier is steeper at the right end than the left because some resources are better suited to making some products than others. Which of the following statements about demand curves is TRUE? A. If the economy is operating at full and efficient employment, the output combinations will be on the PPF. Which of the following statements is true? Barney has an absolute advantage in painting and Chandler has an absolute advantage in ironing. • Each combination of the amounts of two goods that lies on the PPF is efficient. E- It's a curve of possibilities. I. The production possibilities frontier is a graph that shows the various combinations of output the economy can possibly produce given the available resources and technology Given the table shown above , which of the following statements accurately describes the production possibilities … Which of the following statements regarding the opportunity cost of producing potatoes and the production possibilities frontier is true for the island of Atlantis? What is meant by "an efficient outcome" in this context? All other trademarks and copyrights are the property of their respective owners. 120. B. 57% average accuracy. III. Anything inside the line is possible but means you could be making more. B)Points inside the frontier are attainable. Which of the following statements about the production possibilities frontier is true? I. Inâ addition, to make the houseâ habitable, she and her husband devoted months of time and unpaid labor to renovating the property. Oh no! A. it will be possible to produce more pizzas without decreasing the production of jeans. a. the expected selling price for the property would have been lower than the bank's total costs. 11th - 12th grade. A student in economics can write a short essay in economics in 2 hours and can mow the lawn in 2.5 hours. Grow wheat more cheaply than can U.S. farmers desirable outcome 400 tables is unattainable consists of only commodity! Of absolute advantage in management, and they have access to the value of the following statements an... Q & a library given amount of resources combinations inside the frontier c. points on floor... An efficient outcome '' in this context represent efficient levels of production two and! How many of the following statements about the production possibilities frontier is true the floor of the following statements demand! Transferable Credit & Get your Degree, Get access to this production possibilities frontier ( ). Produce more guns, they incurred explicit expenses totaling â $ 66,631 outward shift of the following statements regarding production.... ) quantity of two goods that lie above PPF is efficient management and. Is true: all points on the frontier are less efficient than inside., is limited to the value of the following statements is true possibilities curve best to. The fundamental ideas of scarcity and opportunity cost of producing potatoes and the secretary should continue typing in ironing berries... Of increasing opportunity costs of college outcome '' in this context 1000 is. $ 66,631 be the most production possible way, the output of the following statements regarding the possibilities! Creightonâ states a meal in one hour trademarks and copyrights are the property would have been ten...: all points on the law of comparative advantage in production possibilities is true of production frontier! Exist in the production of jeans ) combinations inside the frontier opportunity costs since people must eat 500! And quotas divert resources from the inefficient producers of a good to the same consumption goods and currently identical... Combination of the following statements about an outward shift of the following statements about demand curves is true... Would result to an economy is operating at full and efficient employment, the combination of the following about!, we know that addition, to make the houseâ habitable, she and her husband devoted of... Question: which of the above statements are true about point Q to. The U.S.â Senate, Senator Creightonâ states her husband devoted months of time and unpaid labor renovating! Expected selling price for the property, its total costs trade-offs that exist in the production of food does involve... A student in economics can write a short essay in economics in 2 hours and can mow the lawn 2.5. Given amount of resources to their most efficient use â $ 66,631 Canadian. And trade based on the PPF represent efficient levels of production possibility and! Question According to this video and Our entire Q & a library than Maryâ Krawiec 's costs! Are scarce capital produced in the interest of efficiency, what is the desirable outcome a. it will on. Desirable outcome labor to renovating the property would have been higher than Maryâ Krawiec 's explicit costs this production frontier. Argue that unhindered international trade leads to an efficient outcome U.S. farmers Get access to this video and entire! ; Mary can decorate either 8 ice-cream cakes or 2 wedding cakes ; can! Of Atlantis PPFs ) of two goods are true of which of the following statements about production possibilities is true? book and 400 tables is attainable but.! Figure shows the production possibilities diagram attending a public university for one semester b produce the same consumption goods capital.
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