NAME Exhibit 13 Production possibilities curves Consumption YearY goods Capital
ID: 1146076 • Letter: N
Question
NAME Exhibit 13 Production possibilities curves Consumption YearY goods Capital goods 12. In Exhibit 13, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This economy: has lower unemployment in Year Y than in Year X. a. was more efficient in Year X than in Year Y achieved full employment in Year X and in Year Y. b. c. d. showed no growth between Year X and Year Y. e. is worse off in Year Y than in Year X. 13. Of factors which affect any economy's production potential, the best two listed below are: a. resources and technology. b. c. d. e. resources and prices. prices and outputs. wages and prices. taxes and prices. The production possibilities curve shows different combinations of goods that: a. can be consumed by households. b. can be consumed by firms. c. can be produced with the available technology. d. are produced and consumed by firms. e. are bought and sold in the market. 14· 15. Adding more resources causes: downward movement along a production possibilities curve. the production possibilities curve to shift in. upward movement along a production possibilities curve. the production possibilities curve to shift out. the production possibilities curve to become positively sloped. a. b. c. d. e.Explanation / Answer
Question 12
In Year X, Country was located at point A while in Year Y, Country was located at point B.
Point A lies inside the PPF of Year X. When country operates at a point which lies inside the PPF then this indicates underutilization of resources. In other words, some resources (including labor) is unemployed.
Point B lies on the PPF of Year Y. When country operates at a point on its PPF then this indicates full employment of resources.
Thus, this economy has lower unemployment in year Y then in year X.
The correct answer is the option (a).
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.