657cdd12133f00b?projector 1&messagePartid-0.2 Figure 1 Goods Consumption Goods 1

Question

657cdd12133f00b?projector 1&messagePartid-0.2 Figure 1 Goods Consumption Goods 16. In figure 1, point Y a. is optimal b. can not be produced c. implies unemployed resources d. is equilibrium e. none of the above 17. In figure 1, point V: a. is optimal b. can not be produced c. implies unemployed resources d. is equilibrium e. none of the above 18. In figure 1, the production possiblity curve exhibits increasing relative costs due to: a. specialized resources b. increasing technology c. a fixed time period d. all of the above e. none of the above MacBook Pro

Explanation / Answer

Ans16) the correct option is b. Can not be produced. Points that lie outside the PPF are unattainable and can not be produced with the following resources.

Ans17) the correct option is c. Implies unemployed resources. Points that lie inside the PPF are inefficient because more can be produced with the the given resources.

Ans18) the correct option is c. A Fixed time period. Increasing relative cost implies the relative cost increase as the production is increased.

Ans19) the correct option is c. Both are optimal. Points that lie on the PPF are efficient and optimal because resources are fully employed.

Ans20) the correct option is c. More capital and higher production in the future. Point X compared to point Z implies more of investment goods will be produced and less of consumption good.

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