Question: A Bowed Out PPF Reflects Which Of The Following Ideas? 1 Answer to A bowed out PPF reflects which of the following ideas? scarcity. C) curve that is bowed outward if increasing opportunity costs exist. increasing opportunity costs. The PPF is typically bowed-outward due to the law of increasing opportunity costs. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. 2 - Within a PPF framework, explain each of the... Ch. The PPF is typically bowed-outward due to the law of increasing opportunity costs. B) straight line if decreasing opportunity costs exist. Any societyâ s choice problem is illustrated by using a diagram, called production possibilities curve (PPC) or production possibilities frontier (PPF). C) bowed outward. ANS: An economy is producing efficiently … 13.From a point on the PPF, rearranging production and producing more of all goods is possible. 14.From a point within the PPF, rearranging produc-tion and producing more of all goods is possible. Describe how productive efficiency is represented by a PPF. Explain what productive efficiency means. An increase in the quantity of resources and an advance in technology. The production possibility curve is the frontier (or outer boundary) of the production possibility set, and it captures the trade-off in production of different commodities. C)a point outside the production possibilities frontier. A PPF/PPC representation can take the shape of a concave or a straight line, (aka “linear”), depending on the elements and factors being taken into the equation. Therefore, the opportunity cost of producing more units grows and the PPF becomes steeper and steeper. Multiple Choice . D) All of the above are possible and more information is needed to determine which answer is correct. choice.Question 172.5 out of 2.5 points Exhibit 2-9Alex AdamGood A Good B Good A Good B0 300 0 … To 2 - Give an example to illustrate each of the... Ch. Question: An economy's production possibilities frontier would shift outward as a result of: (x) A decrease in the rate of unemployment as more workers became employed. The PPF between goods X and Y will be a downward-sloping A) straight line if increasing opportunity costs exist. b. PPF after the war has probably shifted to the left compared to its PPF prior to the war. The bowed out shape of the PPF is because certain factors of production are better suited to producing one good than they are to producing another good. bowed-outward PPF What are the two major factors that affect economic growth? Ch. The result is that the PPF is typically bowed-outward due to the law of increasing opportunity costs. If a further $20 billion increase beyond the initial $20 billion Therefore, the opportunity cost of producing more units grows and the PPF becomes steeper and steeper. Q 72 Q 72. Imagine you are producing at point A in the graph of part a). Hit Return to see all results. Remaining on the PPF, an increase of banana production to D) curve that is bowed outward if constant opportunity costs exist. c. PPF after the war is probably the same PPF as before the war. As more of a product is produced, it becomes increasingly more difficult to find resources that are well-suited to producing that product. a. An outward shift of a PPF means that an economy has increased its capacity to produce all goods. 2 - Why are most PPFs for goods bowed outward (concave... Ch. An outward shift of the PPC results from growth of the availability of inputs, such as physical capital or labour, or from technological progress in knowledge of how to transform inputs into outputs. Introduction to Economics and the Economy 1. B) increasing opportunity costs. decreasing opportunity costs. D) scarcity. PTS: 1 DIF: Difficulty: Challenging NAT: BUSPROG: Analytic LOC: DISC: Scarcity, tradeoffs, and opportunity cost KEY: Bloom's: Analysis 4. D) scarcity. Free. A PPF is more likely to be a downward-sloping curve that is bowed outward than a downward-sloping straight line because - Answered by a verified Tutor . 15.Production efficiency requires producing at a point on the PPF. 152. In this case the opportunity cost curve is a negatively sloping convex curve to the origin. 2 - Give an example to illustrate each of the... Ch. 1)constant opportunity costs. The result is that the PPF is typically bowed-outward due to the law of increasing opportunity costs. For example, if the two goods are food and clothes, then in order to produce more and more clothes, eventually the most productive farm land must be allocated to clothes production. C) decreasing opportunity costs. As more of a product is produced, it becomes increasingly more difficult to find resources that are well-suited to producing that product. All choices along the curve shows production efficiency of both goods. 16.Along a bowed-out PPF… 2 - Look back at Exhibit 4 and notice that the slope... Ch. 33) The nationʹs production possibilities frontier is bowed outward. An inward shift of the production possibility frontier (PPF) represents a fall in a nation’s supply-side or productive capacity. There you produce only grapes using all of your land. I.If the PPF is bowed outward (from the origin), producing more of one product results in greater and greater opportunity costs in the output of the second product. If the PPF shifts rightward and the population doesn't change, what rises. ANS: The PPF is typically bowed-outward due to the law of increasing opportunity costs. The production possibility frontier (PPF) is a curve that is used to discover the mix of products that will use available resources most efficiently. 115) One point on a PPF shows production levels at 50 tons of coffee and 100 tons of bananas. Answer. 2 - What condition must hold for the PPF to be bowed... Ch. C) decreasing opportunity costs. Suppose that the government decides to increase the production of armaments by $20 billion, and that as a result the output of consumer goods falls by $20 billion. Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. E) choice. 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. When using a PPF, growth is defined as an increase in potential output over time, and illustrated by an outward shift in the curve. a. production possibilities frontier (PPF) after the war has probably shifted to the right compared to its PPF prior to the war. 2 - Look back at Exhibit 4 and notice that the slope... Ch. We use cookies to give you the best possible experience on our website. A production possibilities frontier with a bowed outward shape indicates an increase in opportunity costs as more and more of one good is produced. Unlock to view answer. 2)increasing opportunity costs. II.If the economy is operating at full and efficient employment, the output combinations will be on the PPF. The law of increasing opportunity cost results from the varying ability of resources to adapt to the production of different goods and it helps to explain why production possibilities curves are typically bowed outward. 5)choice. A the production possibilities frontier (PPF) is bowed outward as a result of. III.Unattainable combinations of goods are shown by points inside the PPF. Explain what productive efficiency means. Answers: a movement from A to C a movement from B to D a movement from C to D a movement from F to D none of the aboveQuestion 162.5 out of 2.5 points A PPF is bowed outward as a result of Answers: constant opportunity costs. One cause could be the effects of natural disasters such as drought, earthquakes or severe floods which destroy built-up capital and potentially causes significant loss of life. B) increasing opportunity costs. As a result, the country's. Don't use plagiarized sources. By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. The desired result is to maximize the potential output level of one of the commodities in relation to that of the other. 3)decreasing opportunity costs. February 12, 2014, sahan, Leave a comment. A production possibility frontier is a curve that represents the rates of production of two commodities that use the same factors of production within a specified period (Bradford, 2007). True b. A PPF is a straight line as a result of A) constant opportunity costs. Free. Sign in Business. E) choice. Economics Microeconomics Why ... What condition must hold for the PPF to be bowed... Ch. 4)scarcity. Now you want to consider raising 200 llamas (which means moving to point B). d. ability to produce goods and services has increased. c) The PPF is bowed outward due to the law of increasing opportunity costs. As a result, our contributions are (i) measuring economic growth based on a shift of bowed-out PPF outward and (ii) proving formally that the long-term or natural or potential rate of growth is determined by rate of growth of effective labour. 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