What are the points that are attainable in the production possibility frontier?

What are the points that are attainable in the production possibility frontier?

All points inside PPF are inefficient points. These points are attainable (e.g., point U), but they are not using the resources at the fullest. At point U, if technology or resources are used at full capacity, the economy could be at point B or C, meaning more would be produced.

Are all points on the PPF productively efficient?

All choices along the PPF in Figure 1, such as points A, B, C, D, and F, display productive efficiency. However, any choice inside the production possibilities frontier is productively inefficient and wasteful because it’s possible to produce more of one good, the other good, or some combination of both goods.

Why are points outside the PPF unattainable?

Each point on the graph represents a column of the table. The line through the points is the PPF. Because the PPF shows the limits to production, it separates attainable combinations from unattainable ones. Points outside the PPF such as point G are unattainable.

What are attainable and unattainable combinations?

In Economical terms, an attainable combination is the set or combination of two goods which is feasible by the economy to manufacture with the available resource allocation and technology. Points on the right on outside the curve represents the unattainable combination of goods.

What is an unattainable point?

Points that lie to the right of the production possibilities curve are said to be unattainable because they cannot be produced using currently available resources.

How can production possibilities frontier identify productive and allocative efficiency?

allocative efficiency: when the mix of goods being produced represents the mix that society most desires. production possibilities frontier (PPF): a diagram that shows the productively efficient combinations of two products that an economy can produce given the resources it has available.

How does a production possibilities frontier show efficient uses of a country’s resources?

T3: How does a production possibilities frontier show efficient uses of a country’s resources? A production possibilities frontier shows efficient uses of a country’s resources because it shows that the country is using all of their resources efficiently to maximize production.

What is unattainable production?

Do all attainable combination of two goods that can be produced in an economy point to same level of output?

Answer: No. Explanation: Attainable combination are split in 2, on the ppc and inside the ppc. The point on the curve means that the resources and technology is used fully, to its capability.

What does unattainable mean in economics?

All points outside of the curve are unattainable (because they require more resources than are available) without trade with an external producer (such as is the case with international trade). All points within the curve are attainable but productively inefficient.

What is the difference between the curve and production possibilities frontier?

Points outside the curve are unobtainable with given resources and technology. Points inside the frontier are attainable, but do not utilize society’s resources efficiently. The production possibilities frontier illustrates concepts of Scarcity – resources are limited.

How does the production possibilities frontier illustrate concepts of scarcity?

The production possibilities frontier illustrates concepts of Scarcity – resources are limited. Choice – choices in the production of different goods need to be made. Opportunity cost – to gain more of a good, something else must be given up.

What impact would the retirement law have on the production possibilities frontier?

Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty. What impact would this law have on the nation’s production possibilities frontier? The production possibilities frontier would shift inward. the points inside and the points on the production possibilities frontier.

How many bananas can be produced on a production possibilities frontier?

B 18) On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced. Between these points, what is the opportunity cost of producing a pound of bananas?