1.Economic Problem Problem of choice or a problem of allocation of resources is the major economic problem which arises due to scarce resources and alternative uses of resources. Use slides 3-14 for notes over the production possibilities curve. 2. Explain the difference between a bowed out PPC and a straight line PPC. Define a production possibilities frontier (curve). A point above the curve indicates unattainable with the available resources. Choose your answers to the questions and click 'Next' to see the next set of questions. It is a model of a macro economy used to analyze the production decisions in the economy and the problem of scarcity. The Shape Of The Production Possibility Curve Depends On The Relationship The Two Uses Share. Production possibility curve is the curve that show the combination of two item or services that can be produce in the market in a certain amount of time provided that all other eternal factor that can effect the curve are kept constant such as, labour, technology land and capital. If a company produces 20,000 watermelons and 1,20,000 pineapples. Related link: What is Demand? Answer: The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. Production Possibilities Curve Answers Directions: Use the information in FIGURE 1 PPC to answer the following questions about the Alpha economy. Because, at the situation of full utilization of given resources, the production of both goods cannot be increased. Production Possibilities Curve Example. A point below the curve means the production is not utilising 100 per cent of the ‘business’s resources. Production Possibilities Curve – a graph that shows alternative ways to use an economy’s resources – does not show consumer satisfaction. Production Possibilities Frontier – the line on a production possibilities graph that 3. To define the meaning of production possibility curves. Scarcity, Choice, and the Production Possibilities Curve Chapter Exam Instructions. Production Possibility Curves Objectives 1. 1. 2. 3. The following diagram (21.2) illustrates the production possibilities set out in the above table. 4. 5. The Particular Area In Question Can Be Used For Timber Production And/or Recreation. To define the implications of scarcity in an economic system. Draw a PPC demonstrating what a point on, inside and outside of the curve represents. To understand the economic implication of the production possibility curve model. In this diagram AF is the production possibility curve, also called or the production possibility frontier, which shows the various combinations of the two goods which the economy can produce with a given amount of resources. Figure 1 shows the production possibilities curve for Alpha, which makes two products: weapons of mass destruction and food. 1. Production Possibilities Frontier Production Possibilities Frontier is the line that shows the maximum possible output for that economy. Figure 2.9 Efficient Versus Inefficient Production. Introduction Important Questions for Class 12 Economics Central Problems of An Economy, Production Possibility Curve and Opportunity Cost. On the diagram, its point B. Curve showing all combinations of two goods that can be produced with resources and technology available Society’s choices are limited to points on or inside the PPF With this meaning we have several other aspects also to … Our experts can answer your tough homework and study questions. 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