ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an inward shift of the production possibilities curve
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an outward shift of the production possibilities curve
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a decrease in the amount of the other good that can be produced
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an increase in the costs of both goods
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an increase in the amount of resources available
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Detailed explanation-1: -When an economy is at full employment and full production, more of any one product: can be produced only if there is less production of some other products. A point on the frontier of the production possibilities curve is: attainable and the economy is efficient.
Detailed explanation-2: -The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.
Detailed explanation-3: -When an economy is operating efficiently, the production of one more unit of a good will result in the production of less of another good because: the resources are fully utilized in producing a given combination of goods and services.
Detailed explanation-4: -Productive efficiency means that, given the available inputs and technology, it’s impossible to produce more of one good without decreasing the quantity of another good that’s produced.