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4B PPC

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  • What are the inefficient points on a PPC?
    The points that can be achieved and don’t satisfy.
  • What does it mean if a point is inefficient?
    That the economy is not making the best use of resources that they can do.
  • The PPC is ______ when the factors of production are not equally productive for both goods.
    curved
  • What is the opportunity cost of producing OD of consumer goods?
    EB capital goods
  • Monica could instead have practiced her violin or done her French homework. Her opportunity cost of practicing her violin
    the grade for her French homework
  • If a point is inside the PPC that means that it is _____ and if it is outside, that would mean that it is _____.
    inefficient unattainable
  • Give an example of what may happen if the PPC decrease like this.
    The PPC decreases because there are no more resources or technology isn't enough
  • Suppose that an economy can produce various combinations of fish and bread. If more people with strong fishing skills became employed in this economy, how would the production-possibilities curve (PPC) change?
    The PPC would shift outward on the fish axis, but would not change on the bread axis.
  • When is a ppc linear?
    When the opportunity costs is constant
  • Give an example of what may happen if the MPC increases like this
    The PPC increases because there are more resources or more technology advances
  • The graph of the PPC can be __________ or not. ____________ curve happens when the factors of production are ________ productive for both goods.
    (linear) (linear) (equally)
  • Jill decides to take the bus to work instead of driving. It takes her 60 minutes to get there on the bus and driving would have been 40, so her opportunity cost is
    20 minutes of free time
  • What can cause a shift like this:
    A decrease in resources or technology
  • The opportunity cost of producing capital goods …………….. the ………… capital goods are made.
    The opportunity cost of producing capital goods increases the more capital goods are made.
  • The points that are outside the opportunity curve are-----, the ones that are inside are------
    unattainable inefficient
  • What can cause a shift from FH to AB?
    an increase of resources needed to produce good x
  • What can cause a ppc to shift outwards only in one direction like shown in the picture?
    An increase in a good or technology that only affects that good
  • What is an opportunity cost?
    An opportunity cost is the loss of other alternatives when one alternative is chosen
  • The PPC is a downward line due to _____.
    scarcity
  • The graph of the PPC represents the maximum level of output that can be reached with a given amount of ___________ ____________ ___________
    productive resources technology
  • What could be a cause for an upward shift in the PPC?
    change in resources advances in technology education or training changes in the labor face
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