A typical concave production possibilities curve implies:Multiple Choicethat economic resources are scarce.that society must choose among various attainable combinations of goods.all of these are correct.increasing opportunity costs.
Question
A typical concave production possibilities curve implies:Multiple Choicethat economic resources are scarce.that society must choose among various attainable combinations of goods.all of these are correct.increasing opportunity costs.
Solution
The correct answer is "all of these are correct."
Here's why:
-
A typical concave production possibilities curve implies that economic resources are scarce. This is because the curve represents all possible combinations of two goods that can be produced given the available resources. If resources were not scarce, the curve would be a straight line extending indefinitely.
-
The curve also implies that society must choose among various attainable combinations of goods. This is because not all combinations are possible due to the scarcity of resources. The points on the curve represent the maximum possible production of one good for a given level of production of the other, given the resource constraints.
-
Lastly, the curve implies increasing opportunity costs. This is because the concave shape of the curve reflects the law of increasing opportunity costs, which states that as more of a good is produced, the opportunity cost (in terms of the other good) increases. This is due to the fact that resources are not perfectly adaptable to the production of all goods.
Similar Questions
In drawing the production possibilities curve we assume that:Multiple Choiceunemployment exists.economic resources are unlimited.technology is fixed.wants are limited.
Why does the downward-sloping production possibilities curve imply that factors of production are scarce?
A nation's production possibilities curve is "bowed out" from the origin because:Multiple Choiceresources are scarce.resources are not equally efficient in producing every good.the originator of the idea drew it this way and modern economists follow this convention.wants are virtually unlimited.
Choice is necessitated by _____.*1 pointA. demand and supplyB. cost of productionC. production possibility curveD. scarcity of resources
Discuss the characteristics of Production Possibility Curve?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.