Which situation would most likely cause a nation’s production possibilities curve to shift inward? Any point inside the production possibilities curve indicates: the presence of inflationary pressures. the presence of technological change.
What could cause a production possibilities curve to move up and to the right?
When increases production of an item, the cost of producing the opportunity cost goes up. curve shifts to the right because of more skilled workers, thus increasing production.
Which of the following will shift the PPC to the right?
Where there is advancement of technology or increase in availability of resources or introduction of a production method with improved efficiency in respect to both the goods, then PPF will shift to the right, i.e. outwards. This is because the more of both are goods are being produced due to the above factors.
Which of the following will not produce an outward shift of the production possibilities curve?
(B) A reduction in unemployment would NOT produce an outward shift in the production possibilities curve.
What does a production curve show?
The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs.
Who has the comparative advantage in the production of corn?
Since Saudi Arabia gives up the least to produce a barrel of oil, (¼ < 2 in Table 19.4) it has a comparative advantage in oil production. The United States gives up the least to produce a bushel of corn, so it has a comparative advantage in corn production.
What can cause a production possibilities curve to move to the right quizlet?
What can cause a production possibilities curve to move to the right? A new invention lowers the cost of production. What is the purpose of a production possibilities graph? to show alternative ways to use an economy’s resources.
