The curvature of the PPF reflects increasing opportunity cost when substituting one type of Answer: D. Topic: Production Efficiency. Points on the production possibilities curve thus satisfy two conditions: the economy is making full use of its factors of production, and it is making efficient use of its factors of production. C) a point outside the production possibilities frontier. A) ... Any point on the frontier (line/curve) is attainable, any point inside the frontier is attainable, ad any point outside the frontier is unattainable. How does the production possibilities frontier show that every choice involves a tradeoff? Lesson summary: the production possibilities frontier. International trade allows the nation to consume at a point outside its production possibilities frontier. Up to this point we've graphed the PPF as a straight line. This is the currently selected item. The Production Possibilities Frontier Illustrates the Law of Increasing Opportunity Cost, Segment 3 ... Our final lesson focuses on the shape of the frontier line. A point on the production possibilities frontier reflects an? International trade shifts the production possibilities frontier outward for the goods that are exported and inward for the goods that are imported. 24, A point on the production possibilities frontier reflects an a attainable point with full employment of all resources b. attainable point without full employment of all resources -c. unattainable point with full employment of all resources d. unattainable point without full ⦠d.) Implies that too ⦠Any point inside the frontier reflects production where one or both outputs may be increased without decreasing the other output level. The Production Possibilities Frontier . Is more efficient than a point on the production possibilities frontier. Choices a.) D) a point inside the production possibilities frontier. However, a straight line doesn't best reflect how the real economy uses resources to produce goods. B) the midpoint of the production possibilities frontier. PPCs for increasing, decreasing and constant opportunity cost. c.) Reflects the fact that more technology needs to be developed to fully employ all resources. Practice: Interpreting graphs of the production possibilities curve (PPC) Image Transcriptionclose. Clearly, such points cannot be production efficient. 3. This quiz has around twelve questions of the same topic; choose the correct answer. b.) Producing one good always creates a trade off over producing another good. International trade shifts the nation's production possibilities frontier inward. If there are idle or inefficiently allocated factors of production, the economy will operate inside the production possibilities curve. The production possibility frontier indicates the maximum production possibilities of two goods or services, assuming a fixed level of technology and only one choice between the two. Could indicate that resources are misallocated. 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