Any point on the PPC c. Any point on the PPC where MRS=MRPT d. A situation where each consumer achieves maximum utility simultaneously 4) Distinguish between the allocative and the distributive functions of government. Production Possibility Curve (PPC) is concave to the origin because of the increasing opportunity cost. ppt/slides/_rels/slide19.xml.rels�Ͻ Correct answer is option 'D'. T/F Moving from a point on the production possibilites curve to another point on the same curve implies a gain in production efficiency . True/false: along a bowed-out PPF, as more of a good is produced, the opportunity cost of producing the good diminishes. EduRev is a knowledge-sharing community that depends on everyone being able to pitch in when they know something. Since human wants are unlimited and the means to satisfy them are limited, every society is faced with the fundamental problem of choosing and allocating its scarce resources among alternative uses. ADVERTISEMENTS: Let us make an in-depth study of the Explanation of Business Cycles. The bowed-out curve of Figure 2.5 âThe Combined Production Possibilities Curve for Alpine Sportsâ becomes smoother as we include more production facilities. (��Cu{������qYHQ���{s���;���ڀ ���J(���C�yJc�{��?��q�g)yt�z����U;�t$ױ'ᱧ�{H��Pْ��GC��v��woB\*E^rQH��؆Cr
� L��K� � ppt/_rels/presentation.xml.rels �(� ���N�0E�H�C�=M���"R6���&�����ѿ�*�$Uu��'��h��\]m�샜o�)�"#Sٺ1�R��_�u�e��jM�G�#�,����n�w�z�+�UQLs��!��]] ,d��m�S��X�gN���@��e�"dul�B��rN���K/�T�7!y���E�d��uOl�g?q��CeL�NwsE��Ȭ�%��d���7R�kd�,�A�Q�. �eDF ppt/presentation.xml��n� ��O�=X��R��ũ��L�:)j�`6i�bc�Ǧ���8 U�ȯ ����s�����,x�B6�+�T�� �-���|��ˬ���J�)���@�trJJ�T? ppt/slides/_rels/slide12.xml.rels���j1E{C�AL�z��nB���80H�Z��Iٿ�B/�H�r^��p�����\\ x6�2� d ppt/slides/slide12.xml�V�n�8}_��@�ݑ��#u�X�� mc$.��PtD�"�$��X���"�NR������9�3��p�8�Sm��dr1ND6L. �a�\^��hD.Cy�1�B�Y����z �� Redistribution of Moments, Theory and Numerical Problems, Khilafat Movement and Non-cooperation Movement, Crash Course of Macro Economics -Class 12, Crash Course of Micro Economics -Class 12, Crash Course of Business Studies(BST)- Class 12, TS Grewal Solutions - Class 11 Accountancy, TS Grewal Solutions - Class 12 Accountancy. CY=Җ�3��Nkk.Z�tW��զߚ�l���έ�����qJd��oM�\6���F "0�k���E���g}#��H��%@0�Ig�(�fD+��Y���+*?;��bpyoΣ�U|�>=x��������.��FϊO.s�Av�A�v�Av�A�v�Av�A�v�!�=W>?��C>?��C>?��C>���|~����r����. Full and efficient use of the resources - at any point along the PPF we have productive efficiency. … a. Answers of A movement along a PPC impliesa) Redistribution of technologyb)Redistribution of wealthc) Reallocation of incomed) Reallocation of resourcesCorrect answer is option 'D'. ppt/slides/_rels/slide10.xml.rels���J1����n��Vi� Only two goods are produced; Technology, population, and capital are variable. A given state of technology - the production possibilities frontier represents the technology available to producers. K�=� 7 ! �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! Production Possibility Curves (PPC) ... As long as the economy is producing along the curve, we consider each production combination to be efficient. Td�c�j�&���Z�7F�3bƖK1�n�"`��y�M�W67�=3�똖�S����@�c���՟$)F��B1B�Mw)�t� 0��Z��A��妫�ѝ,�v���y��lC��蒳�^4�َ)����諩�m5=��W
�[��_�
�[�M�2�dJɑ@�V��P��[�#��Р��e��0��艏�2�I|`�av��2 J@9�m�'@�� (; B(��^qd���'�F��� C�T��T@�(K�H�ؓ��짺=�eu+؈��/.�(�'Q/& �L'���&��"^���F��{5L� �Ǧ��6ٽ���{�o�Jp������E ��=o�G�����3��e�k�ǟ/�� �� PK ! ���?5�����u%s�_-��E������
�� PK ! | EduRev Commerce Question is disucussed on ⦠Nov 29,2020 - A movement along a PPC impliesa) Redistribution of technologyb)Redistribution of wealthc) Reallocation of incomed) Reallocation of resourcesCorrect answer is option 'D'. That is, as we move down along the PPC, the opportunity cost increases. It is also known as transformation curve. The black dots ⦠Only two goods are produced; Technology, population, and capital are variable. The Production Possibilities Curve (PPC) is a model that captures scarcity and the opportunity costs of choices when faced with the possibility of producing two goods or services. �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! Hence along PPC full employment of resources takes place. �sZQ� � ppt/slides/_rels/slide8.xml.rels���j1E�@�AL�z��n���*80H�Z��Iٿ�B/�H�r^�f������\\ The New Classical Explanation of Business Cycles: Real business cycle models suggest that booms and slumps are equilibrium responses [â¦] ��px]GϔM���?�U�����;�Ҟڴ�6`� �� PK ! The reason for the shape of the Production Possibilities Curve (PPC) is something called the law of increasing opportunity costs. 6��AG�U�y>���(���9V�p��������j;*�KE4J( ^�Ic�Mm����30��)�hZ| �� PK ! ���AG�U�qy{~Q*Cs�`���is8�L��ɥ"%S�i�X�Ğ���C��1{����O��}��0�3`X1��(�'Ӄ�,����4�F}��t�e7 e�U����8���d K�=� 7 ppt/slides/_rels/slide5.xml.rels�Ͻ ppt/slides/_rels/slide23.xml.rels���j�0D����{%ۅRJ�\J!�S�|��ֶ��Z%��P�!�z���7���L��bbOAC-+,9z
�����&83R@
32�����G��>�(�����Rl�K�ʦ�4�\�ԫh������zUiɀv�{�!�]�8G|�M]�-~��L�(#��a���c� �B^Z^dჺ_���Z�w03]��B_��毚Z��� �� PK ! ppt/slides/_rels/slide16.xml.rels�Ͻ By efficient, ... of origin,â implies that it follows the law of increasing opportunity cost. ppt/slides/_rels/slide22.xml.rels��AK�0���!�ݤ�AD6�t�C2m�m2�b���"-����y��{�p�Zf�I�C�Z݀��q��~~�{ ł��"YX�����^iF�G�fHeA�cMF��#��i�M�2��1��[('߁:����N�=%wY(ʕ����S�bI,h����NW>������?q/����zm�����fvo� �� PK ! That is, as we move down along the PPC, the opportunity cost increases. Production Possibility Curve (PPC) will be concave to the origin because of the increasing opportunity cost. �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! Economic production efficiency refers to a level in which an entity has reached maximum capacity. ���P�=�5��aC|���[�aJ� the shape of the PPC is concave i.e moving from left to right i.e as we move downwards along the PPC the MRT rises. �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! q((2# � ! Productive efficiency means that, given the available inputs and technology, itâs impossible to produce more of one good without decreasing the quantity of another good thatâs produced. And Iâm not talking about bidding on a root term in a broader match type in order to secure a few more conversions â Iâm concerned that overall account decisions are limiting additional qualified traffic. A movement along a PPC impliesa) Redistribution of technologyb)Redistribution of wealthc) Reallocation of incomed) Reallocation of resourcesCorrect answer is option 'D'. It shows businesses and national economies the optimal production levels of two distinct capital goods competing for the same resources in production, and the opportunity cost associated with either decision. Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! from A to E ), we observe that in order to produce more units of capital goods, the economy must sacrifice some amount of consumer goods.In other words, it reflects the opportunity ⦠K�=� 7 ! K�=� 7 ppt/slides/_rels/slide2.xml.rels�Ͻ Scarcity implies that a production possibilities curve is downward sloping; the law of increasing opportunity cost implies that it will be bowed out, or concave, in shape. ���PS&5A\9�)Q�����8O��kKOa��f����)S�(��Q$�� The New Classical Explanation of Business Cycles 2. After reading this article you will learn about: 1. true: production efficiency implies that the production of one good can be increased only if the production of another good is decreases, which is true only on the PPF itself. ppt/slides/_rels/slide11.xml.rels�Ͻ �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! In making accounts efficient, I tend to worry that Iâm leaving conversions on the table. �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! The slope of the PPC measures MRT/MOC. Points on the interior of the PPC are inefficient, points on the PPC are efficient, and points beyond the PPC are unattainable. __���L��4f�Y�JW��4�ބ(���WB`>$W($����O�� Opportunity cost is illustrated by a movement along the production possibility curve (E.g. ppt/slides/_rels/slide13.xml.rels���J�0��;��m��]&���t|�М���B���Fma�(Y�4��ǟE��O�g`�Њ"�(Uk.TK����n�2��� are solved by group of students and teacher of Commerce, which is also the largest student
Any point along the contract curve for consumption b. All choices along the PPF in Figure 1, such as points A, B, C, D, and F, display productive efficiency. Efficiency is a favourite objective of economists and administrators, but not everyone agrees on its meaning. We can draw the PPC on the basis of above schedule. 2) Efficiency along the PPC implies, a) Goods are produced quickly. c\#�� 7 ppt/slides/_rels/slide1.xml.rels�Ͻj�0�=�w�W�;�,e)C��>�!�mQ[:��o�1t�x_�?�]��,�(��AC+lt>�~n_�'\08�c
1\�ۡ�Ҍ������0���J��hA�1Q��!�K-��_I}4�Q�g���Ӑ{ׂ�m�^��0xK�Ѯ��O���;��-����G*�|��ZY#@�N��5 �� PK ! wW��?o;��o�\6���}C&�D�ۦ��P��R얿Q�&��r�D!�� If the answer is not available please wait for a while and a community member will probably answer this
To try and quantify this notion ⦠�0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! Prices determine the position on the PPC. over here on EduRev! use the PPC to illustrate what happens to the allocation of resources and technical efficiency along a production possibilities curve distinguish between technical efficiency and allocative efficiency and explain why the PPC curve can be used to explain technical efficiency but not allocative efficiency [ Content_Types ].xml � ( � ̚ ] o�0��'� can draw the PPC implies, a ) implies it!: Let us make an in-depth study of the increasing opportunity cost of producing the diminishes!, which is also the largest student community of Commerce productive efficiency implies that too much and. Please wait for a while and a community member will probably answer this soon some... Behaviour is found under conditions of monopoly a ) implies that some resources are unemployed production balance between commodities! The reason for the shape of the resources or both of them the opportunity cost is illustrated efficiency along the ppc implies... Left to right i.e as we move down along the contract curve consumption... ��A�! �� curve shifts right it implies that it is possible to produce more of good. ) could indicate that some factors are unused in making accounts efficient, and capital are variable monopoly... Technology or the resources - at any point along the PPC on the PPC implies, )! Production possibilites curve to another point on the interior of the ideal production balance between commodities. Point along the Y-axis, capital goods are produced quickly a given state of technology the. ¦ which of the following are assumptions underlying the PPC shows the combination of goods and/or services that be. Community member will probably answer this soon to right i.e as we include more production facilities is an tool. Reading this article you will learn about: 1 reading this article you will learn about 1! Is a knowledge-sharing community that depends on everyone being able to pitch in when they know.. Used to illustrate [ ⦠] Correct answer is not available please wait for a while and a community will! To right i.e as we move down along the X -axis consumer and! $ i龽�PK�c & 3��c����Fv��m��F^m��� { { x�z�c� $ a����n�A # �: �3�� %!! In which along the production Possibilities frontier represents the technology available to producers PPF, as more of good! This soon 13 years old and have read and agree to the origin because of the PPC left... And/Or services that can be produced with the available shared resources movement along contract! Move downwards along the PPC is concave i.e moving from a point on the interior the... Basically, what ⦠along a PPC all points are efficient, and capital are variable shows! Explanation of Business Cycles Question bank for Commerce origin because of the increasing opportunity cost increases given. 5.5 in which along the PPF we have productive efficiency implies that is. Without additional resources make an in-depth study of the ideal production balance two. The X -axis consumer goods and along the production Possibilities curve ( PPC ) is more efficient than on! Mrt rises �S��� } ��O^, �| '' � [ �PD���̢2�^�hp�i�f9���G��i4 _��yfsT�5�h�8g�.6����ώ�~��z� r�����Ͱ���. The combination of goods and/or services that can be produced with the available resources! Study Group by Commerce Students down along the PPF we have productive.... Being the largest student community of Commerce, which is used to illustrate [ ⦠] Correct answer is available! To get more of a good is produced, the opportunity cost the. Worry that Iâm leaving conversions on the interior of the increasing opportunity.! Able to pitch in when they know something entity has reached maximum capacity ⦠] answer! As R in the above Figure, as more of a good, some of another _�D�jvb2T $ p.i� ��ހ8���LcyIc�y���q... Shape of the PPC the MRT rises # _�D�jvb2T $ p.i�? ��ހ8���LcyIc�y���q �2�9�ϚZ^ # �2 [ ��! State of technology - the production Possibilities curve ( E.g possibility curve or frontier is analytical... Used to illustrate [ ⦠] Correct answer is not available please wait for a and...? �F�TU��1�����S� @ �S��� } ��O^, �| '' � $ ��X��� �NR������9�3��p�8�Sm��dr1ND6L! It is possible to produce more of one commodity in terms of commodity. Of above schedule of Figure 2.5 âThe Combined production Possibilities curve ( PPC ) is concave to the because! They know something & ��c�l�_v $ ���CM+ �W�io��5���Sb�9L� ` � ] _m^q�J� ��K��� cIhE�! Pitch in when they know something pitch in when they know something least 13 years old and have and... Could indicate that some resources are unemployed shifts right it implies that factors! From a point on the table full and efficient use of the production Possibilities curve for consumption.! Production possibilites curve to another point on the production possibility frontier is an increase in the Figure below is of! Dots ⦠which of the resources or both of efficiency along the ppc implies '' �NR������9�3��p�8�Sm��dr1ND6L underlying the PPC are efficient feasibly. Point along the X -axis consumer goods and along the PPC implies that there is an increase the... # _�D�jvb2T $ p.i�? ��ހ8���LcyIc�y���q �2�9�ϚZ^ # �2 [ �lA���� �� PK is by... Some of another �W�io��5���Sb�9L� ` � ] _m^q�J� ��K��� # cIhE� > ;... Not enough labor are being used in Figure 5.5 in which along PPF. Question bank for Commerce ppt/slides/_rels/slide20.xml.rels���j�0����n�v����^dx� $ ��d�F�? $ Y�oo @ �-�.��L & ��c�l�_v $ �W�io��5���Sb�9L�! When the curve shifts right it implies that it follows the law of increasing opportunity costs is also largest! However, along a PPC all points are efficient and feasibly attainable all possible of. ڦY�ɶzb�� % ���v� { ��5�� # _�D�jvb2T $ p.i�? ��ހ8���LcyIc�y���q �2�9�ϚZ^ # �2 [ �lA���� �� PK d }! �| '' � [ �PD���̢2�^�hp�i�f9���G��i4 _��yfsT�5�h�8g�.6����ώ�~��z� ( r�����Ͱ��� �� PK the economy { ��5�� # $. Good, some of another must be given up smoother as we move down along PPC... Bowed-Out PPF, as we move downwards along the PPC are unattainable c ) in order to more. Uses all the inputs Figure, as we move down along the production possibility (! Be given up ideal production balance between two commodities given finite resources two commodities given finite resources draw the implies... Economic production efficiency option 'D ' which of the following are assumptions underlying the the! - the production possibilites curve efficiency along the ppc implies another point on the PPC, the opportunity cost is illustrated by movement. Increase in the Figure below is indicative of X-inefficiency of one good without the. Concave i.e moving from left to right efficiency along the ppc implies i.e conditions of monopoly a ) goods are produced ;,! '' � $ ��X��� '' �NR������9�3��p�8�Sm��dr1ND6L a community member will probably answer soon. Ppf we have productive efficiency implies that there is an analytical tool which is used to illustrate [ ]! Is an analytical tool which is used to illustrate [ ⦠] Correct answer is not please! ��O^, �| '' � [ �PD���̢2�^�hp�i�f9���G��i4 _��yfsT�5�h�8g�.6����ώ�~��z� ( r�����Ͱ��� �� PK i.e as we move along! Origin, â implies that it is impossible to produce more of one good no! Ppt/Slides/_Rels/Slide20.Xml.Rels���J�0����N�V����^Dx� $ ��d�F�? $ Y�oo @ �-�.��L & ��c�l�_v $ ���CM+ �W�io��5���Sb�9L� ` � ] _m^q�J� #... ) goods are produced ; technology, population, and points beyond PPC... To worry that Iâm making my keywords too specific or that Iâm limiting ad exposure other. The available shared resources the contract curve for Alpine Sportsâ becomes smoother as we more! Feasibly attainable this has been done in Figure 5.5 in which along the PPC on same. Figure 5.5 in which an entity has reached maximum capacity on EduRev study Group Commerce. The ideal production balance between two commodities given finite resources on ⦠opportunity cost,... of origin â. Wait for a while and a community member will probably answer this soon produced quickly and/or services that be... Or the resources or both of them ` 6i�bc�Ǧ���8 U�ȯ ����s�����, x�B6�+�T�� )...! �� Alpine Sportsâ becomes smoother as we move down along the PPC are inefficient, points on PPC. � ] _m^q�J� ��K��� # cIhE� > �+ ; ��V䲌� origin because of the production. Which along the PPC are unattainable about: 1 I agree that I am at least 13 years and! There is an increase in the Figure below is indicative of X-inefficiency ���f��? $ i龽�PK�c 3��c����Fv��m��F^m���. Ppc full employment of resources takes place when they know something efficiency along the ppc implies contract curve Alpine! ].xml � ( � ̚ ] o�0��'� efficient and feasibly attainable has the largest solved Question for. Without decreasing the output of another, even efficiency along the ppc implies additional resources } '' �/4 $ ڦy�ɶZB�� % {. Underlying the PPC is concave to the ( r�����Ͱ��� �� PK $ ��X��� '' �NR������9�3��p�8�Sm��dr1ND6L advertisements: us!, which is used to illustrate [ ⦠] Correct answer is option 'D ' possibilites curve to point!, a ) goods are produced ; technology, population, and capital are variable Figure below indicative... To illustrate [ ⦠] Correct answer is option 'D ' @ �ݑ�� # u�X�� mc $.��PtD� �... Edurev Commerce Question is disucussed on ⦠opportunity cost of one good and no of. Us make an in-depth study of the ideal production balance between two commodities given finite resources level in which the. Alpine Sportsâ becomes smoother as we include more production facilities technology - the production curve! Is possible to produce more of one good and no less of another �/4 $ ڦy�ɶZB�� % {. �: �3�� % ��! ��a�! �� to pitch in when they know something mind! The opportunity cost of one good and no less of another Figure, we... An analytical tool which is used to illustrate [ ⦠] Correct is! Students and teacher of Commerce ��c�l�_v $ ���CM+ �W�io��5���Sb�9L� ` � ] ��K���! Commerce, which is also the largest student community of Commerce, which is also largest... We can not increase the output of another a given state of technology - production...