ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Societies have preferences about what should be produced
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Governments, rather than markets, are more efficient allocators of resources
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Prices that the goods will sell for will be determined in a market
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A society can produce more of any good just by reallocating its resources more efficiently
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When all resources are being used, making more of one good means making less of the other good
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Detailed explanation-1: -The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.
Detailed explanation-2: -The production possibilities curve illustrates the maximum possible output for two products when there are limited resources.
Detailed explanation-3: -When all resources are being used, making more of one good means making less of the other good. The downward slope of the curve represents tradeoffs. Producing more of one of the goods will require shifting resources away from one good and toward the other good. A production possibilities curve.
Detailed explanation-4: -In economics, the production possibilities curve is a visualization that demonstrates the most efficient production of a pair of goods. Each point on the curve shows how much of each good will be produced when resources shift to making more of one good and less of another.
Detailed explanation-5: -The resources are given and remain constant. The technology used in the production process remains constant. The resources and technology are fully and efficiently utilized. The technique of production remains constant.