PPCs for increasing, decreasing and constant opportunity cost. Practice: Interpreting graphs of the production possibilities curve (PPC) Chap 2 econ flashcards start studying chap 2 econ learn vocabulary terms and more with flashcards games and other study tools the unattainable points in a production possibilities best answer a the points outside the ppf the points inside the ppf on the ppf and along the axis are all attainable. We could increase total output by moving towards the PPF. Attainable and Unattainable Combinations: Macroeconomics was developed to explain: A. the Great Depression. somheder For each point on the PPF, use the table below to indicate whether the point is attainable and efficient, attainable and intento n Production possibilities frontier a Good Y Good X Point Analysis Attainable and efficient : Attainable and inefficient : Attainable and efficient Attainable and inefficient Unattainable mo Figure 3.2 shows attainable and unattainable combinations. The Production Possibilities Frontier . Trade between countries allows nations to consume beyond their own PPF. It means: i. These tradeoffs are present both in individual choice and in the production decisions of entire economies.. C. the Industrial Revolution. Points outside the PPF such as point G are unattainable. Economy can either operate on PPF or inside PPF, known as ‘Attainable Combinations’. B. jobless recoveries. The PPF separates attainable combinations from unattainable ones. The points that lie inside the PPC means that the actual production is falling short of its capabilities and there is a wastage or inefficient utilization of resources. A country would require an increase in factor resources, an increase in the productivity or an improvement in technology to reach this combination. Production levels to the left of the PPF are: A. attainable but efficient. One of the central principles of economics is that everyone faces tradeoffs because resources are limited. Question 11 Productive efficiency implies that Selected Answer: gains are impossible in one area without losses in another. D. the Internet boom. ii. C. unattainable and efficient. Production points inside the curve show an economy is not producing at its comparative advantage. The production possibilities curve is also called the PPF or the production possibilities frontier. A PPF would show this relationship between work and sleep (with the constraint of time in a day). Answers: unattainable. This article will describe how to derive and draw a PPF given information from a table. Combinations that lie beyond the PPF are unattainable at the moment. Economy cannot operate at any point outside PPF as it is unattainable with the available productive capacity. Attainable and Unattainable Combinations • Because the PPF shows the limits to production, it separates attainable combinations from unattainable ones. attainable and neither efficient nor inefficient. Using our analysis of Marginal Opportunity Cost (MC) from before, we see that the Slope (absolute value) of the PPF is the Marginal Cost of the good on the horizontal axis. Lesson summary: the production possibilities frontier. B. attainable but inefficient. This is the currently selected item. All choices along the curve shows production efficiency of both goods. attainable and efficient. 3. The points inside and on the PPF are attainable for the firm. The PPF simply shows the trade-offs in production volume between two choices. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. Now, we can plot this table on a graph to obtain production possibility curve, which is shown in Figure-1: In Figure-1, the production possibility point’s g and h are attainable combinations, whereas c and e are unattainable combinations. 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