�� PK ! Economic production efficiency refers to a level in which an entity has reached maximum capacity. ADVERTISEMENTS: The Production Possibilities Curve: Assumption, Uses or Application! ���P�=�5��aC|���[�aJ� �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! point measures opportunity cost of one commodity in terms of alternative commodity given up. ?�F�TU��1�����S�@�S���}��O^,�|"�[�PD���̢2�^�hp�i�f9���G��i4 �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! All choices along the PPF in Figure 2, such as points A, B, C, D, and F, display productive efficiency. That is, as we move down along the PPC, the opportunity cost increases. However, along a PPC, all combination of output uses all the inputs. The PPC or the Production Possibility Curve represents the output combinations of various goods using the best available technology that can be produced using all the relevant resources. That is, as we move down along the PPC, the opportunity cost increases. ppt/slides/_rels/slide19.xml.rels�Ͻ Since human wants are unlimited and the means to satisfy them are limited, every society is faced with the fundamental problem of choosing and allocating its scarce resources among alternative uses. We cannot increase the output of one good without decreasing the output of another. L��K� � ppt/_rels/presentation.xml.rels �(� ���N�0E�H�C�=M���"R6���&�����ѿ�*�$Uu�š�'��h��\]m�샜o�)�"#Sٺ1�R��_�u�e��jM�G�#�,����n�w�z�+�UQLs��!��]] �|�t!9�rL���߰'����~2��0��(H[s�=D�[:b4�(uH���L'�e�b���K9U!��Z�W���{�h���^���Mh�w��uV�}�;G�缦�o�Y�D���S7t}N!�3yC���a��Fr�3� �� PK ! Which of the following are assumptions underlying the PPC? soon. The slope of the PPC measures MRT/MOC. =Uk�� � ! K�=� 7 ! 2. ppt/slides/_rels/slide10.xml.rels���J1����n��Vi� A given state of technology - the production possibilities frontier represents the technology available to producers. ppt/slides/_rels/slide11.xml.rels�Ͻ Only two goods are produced; Technology, population, and capital are variable. Understanding the Guns-and-Butter Curve . Production Possibility Curves (PPC) ... As long as the economy is producing along the curve, we consider each production combination to be efficient. In the above figure, as we move downwards along the PPC from left to right (i.e. agree to the. 3. 4���Mn�@���+��>�F7;�� x6�2� d ppt/slides/slide12.xml�V�n�8}_��@�ݑ��#u�X�� mc$.��PtD�"�$��X���"�NR������9�3��p�8�Sm��dr1ND6L. Prices determine the position on the PPC. ppt/slides/_rels/slide14.xml.rels�Ͻ ppt/slides/_rels/slide16.xml.rels�Ͻ A movement along a PPC impliesa) Redistribution of technologyb)Redistribution of wealthc) Reallocation of incomed) Reallocation of resourcesCorrect answer is option 'D'. ���� � ! K�=� 7 ppt/slides/_rels/slide4.xml.rels�Ͻ __���L��4f�Y�JW��4�ބ(���WB`>$W($����O�� Which of the following are assumptions underlying the PPC? ppt/slides/_rels/slide13.xml.rels���J�0��;��m��]&���t|�М���B���Fma�(Y�4��ǟE��O�g`�Њ"�(Uk.TK����n�2��� A movement along PPC implies that more of good X is produced by sacrificing the production of a certain amount of good Y. PPC is also called opportunity cost curve because slope of the curve at each and every. After reading this article you will learn about: 1. _��yfsT�5�h�8g�.6����ώ�~��z�(r�����Ͱ��� �� PK ! �%;W x ! T/F if demand is inelastic, the absolute value of the price elasticity of demand is between 0 and 1 ... C- there is mvt along the PPC In the chart, the red curve represents all possible choices of production for the economy. community of Commerce. ^�Ic�Mm����30��)�hZ| �� PK ! k;�� 7 ! om%��Ѷذ����ˢXc;�@�$3;r�쑇����5ٺiD �>KP�� �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! �Z�b�{*2&m2�쩶2[L�/d���b�g��b��Q�O�q^����i>D}��t�e7 e�U����8���2�Xc�ev��i�׺��믖z�"~�p��� �� PK ! Only two goods are produced; Technology, population, and capital are variable. Nov 29,2020 - A movement along a PPC impliesa) Redistribution of technologyb)Redistribution of wealthc) Reallocation of incomed) Reallocation of resourcesCorrect answer is option 'D'. wW��?o;��o�\6���}C&�D�ۦ��P��R얿֋Q�&��r�D!�� Basically, what … is done on EduRev Study Group by Commerce Students. The production possibility curve or frontier is an analytical tool which is used to illustrate […] Can you explain this answer? The New Classical Explanation of Business Cycles 2. A Movement from point B to C implies that as the production of food decreases from 30 tons to 20 tons, the production of guns increased from 2 million to 3,5 million. ���PS&5A\9�)Q�����8O��kKOa��f����)S�(��Q$�� ����� � ! 2) Efficiency along the PPC implies, a) Goods are produced quickly. ppt/slides/_rels/slide27.xml.rels��1k�0��B�������-%r�Rdj� ��-b�N ���:lȐ��{�����L��bbOAC-+,9z �����&83R@ 32�����G��>�(�����Rl�K�ʦ�4�\�ԫh������zQiɀv�{�!�]�8G|�M]�-~��L�(#��a���c� �B^Z^eჺ_���Z�w03]��B_��毚Z��� �� PK ! over here on EduRev! | EduRev Commerce Question is disucussed on … �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! To try and quantify this notion … Can you explain this answer? K�=� 7 ppt/slides/_rels/slide2.xml.rels�Ͻ ppt/slides/_rels/slide18.xml.rels�Ͻ ppt/slides/_rels/slide17.xml.rels�Ͻ H.Crassas – 2014 – MNG3701 Page 5 1.3 X-EFFICIENCY AND ECONOMIC GROWTH (2.3) X-inefficiency (technical inefficiency) means that firms are not maximising profit or factors of production are not maximising their welfare. Production Possibility Curve (PPC) is the locus (the path of a moving point) of various combinations of two commodities which can be produced with given level of resources and technology. The Rate of Transformation on the PPC is the rate of economically efficient exchange; it tells us the Opportunity Cost of one good in terms of another. A position inside the PPC such as R in the figure below is indicative of X-inefficiency. The New Classical Explanation of Business Cycles: Real business cycle models suggest that booms and slumps are equilibrium responses […] The PPC shows the combination of goods and/or services that can be produced with the available shared resources. Full and efficient use of the resources - at any point along the PPF we have productive efficiency. 5���� � ! �'8�� � ! As we move down along the PPC, to produce each additional unit of Good X, more and more units of Good Y needs to be sacrificed. T/F Moving from a point on the production possibilites curve to another point on the same curve implies a gain in production efficiency . All the above. K�=� 7 ppt/slides/_rels/slide5.xml.rels�Ͻ When the curve shifts right it implies that there is an increase in the technology or the resources or both of them. I struggle with the notion that I’m making my keywords too specific or that I’m limiting ad exposure in other ways. Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. h�t� � _rels/.rels �(� ���J1���!�}7�*"�loD��� c2��H�Ҿ���aa-����?�$Yo�n ^���A���X�+xn� 2�78O Productive inefficiency implies that it is impossible to produce more of one good and no less of another. K�=� 7 ! �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! ���J(���˜C�yJc�{��?��q�g)yt�z����U;�t$ױ'ᱧ�{H��Pْ��GC��v��woB\*E^rQH��؆Cr � Points on the interior of the PPC are inefficient, points on the PPC are efficient, and points beyond the PPC are unattainable. Non-maximising behaviour is found under conditions of monopoly ��>���f��?$i龽�PK�c&3��c����Fv��m��F^m���{{x�z�c�$a����n�A#�:�3��%��!��a�!��? �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! Any point along the contract curve for consumption b. If the answer is not available please wait for a while and a community member will probably answer this �N�1��n 15) 16)A point inside a production possibilities … �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! c\#�� 7 ppt/slides/_rels/slide1.xml.rels�Ͻj�0�=�w�W�;�,e)C��>�!�mQ[:��o�1t�x_�?�]��,�(��AC+lt>�~n_�'\08�c 1\�ۡ�Ҍ������0���J��hA�1Q��!�K-��_I}4�Q�g���Ӑ{ׂ�m�^��0xK�Ѯ��O���;��-����G*�|��ZY#@�N��5 �� PK ! Correct answer is option 'D'. The movement along the PPC from left to right shows that in order to produce more units of capital goods, the economy must sacrifice some amount of consumer goods. The black dots … �h]�� � ! K�=� 7 ! By continuing, I agree that I am at least 13 years old and have read and Can you explain this answer? PK ! ppt/slides/_rels/slide26.xml.rels��1k�0��B���=��!�9K)25�8��-bKB����G }HK}"�/4$ڦy�݌ɶZB��%���v�{��5��#_�D�jvb2T$p.i�?��ހ8���LcyIc�y���q �h!� � ! Efficiency is a favourite objective of economists and administrators, but not everyone agrees on its meaning. �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! ���?5�����u%s�_-��E������ �� PK ! ��>��Q����$��ma'k��$-�H�5��Mc�sx_X\ޖE��J�RĄ�s�Hd��uL~�|�]�@.R^H1ف&��ׯ7;:��B�$3F}�T'�\�R��=+Y���f���'�h4���D Along a PPC all points are efficient and feasibly attainable. 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Any point on the PPC c. Any point on the PPC where MRS=MRPT d. A situation where each consumer achieves maximum utility simultaneously 4) Distinguish between the allocative and the distributive functions of government. Yes, even if the PPC shifts inward due to decreased investment, lower economic growth, decreased productivity/technology or other factors, any point on the PPC still represents max efficiency production. use the PPC to illustrate what happens to the allocation of resources and technical efficiency along a production possibilities curve distinguish between technical efficiency and allocative efficiency and explain why the PPC curve can be used to explain technical efficiency but not allocative efficiency �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! Economic production efficiency refers to a level in which an entity has reached maximum capacity. ADVERTISEMENTS: The Production Possibilities Curve: Assumption, Uses or Application! ���P�=�5��aC|���[�aJ� �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! point measures opportunity cost of one commodity in terms of alternative commodity given up. ?�F�TU��1�����S�@�S���}��O^,�|"�[�PD���̢2�^�hp�i�f9���G��i4 �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! All choices along the PPF in Figure 2, such as points A, B, C, D, and F, display productive efficiency. That is, as we move down along the PPC, the opportunity cost increases. However, along a PPC, all combination of output uses all the inputs. The PPC or the Production Possibility Curve represents the output combinations of various goods using the best available technology that can be produced using all the relevant resources. That is, as we move down along the PPC, the opportunity cost increases. ppt/slides/_rels/slide19.xml.rels�Ͻ Since human wants are unlimited and the means to satisfy them are limited, every society is faced with the fundamental problem of choosing and allocating its scarce resources among alternative uses. We cannot increase the output of one good without decreasing the output of another. L��K� � ppt/_rels/presentation.xml.rels �(� ���N�0E�H�C�=M���"R6���&�����ѿ�*�$Uu�š�'��h��\]m�샜o�)�"#Sٺ1�R��_�u�e��jM�G�#�,����n�w�z�+�UQLs��!��]] �|�t!9�rL���߰'����~2��0��(H[s�=D�[:b4�(uH���L'�e�b���K9U!��Z�W���{�h���^���Mh�w��uV�}�;G�缦�o�Y�D���S7t}N!�3yC���a��Fr�3� �� PK ! Which of the following are assumptions underlying the PPC? soon. The slope of the PPC measures MRT/MOC. =Uk�� � ! K�=� 7 ! 2. ppt/slides/_rels/slide10.xml.rels���J1����n��Vi� A given state of technology - the production possibilities frontier represents the technology available to producers. ppt/slides/_rels/slide11.xml.rels�Ͻ Only two goods are produced; Technology, population, and capital are variable. Understanding the Guns-and-Butter Curve . Production Possibility Curves (PPC) ... As long as the economy is producing along the curve, we consider each production combination to be efficient. In the above figure, as we move downwards along the PPC from left to right (i.e. agree to the. 3. 4���Mn�@���+��>�F7;�� x6�2� d ppt/slides/slide12.xml�V�n�8}_��@�ݑ��#u�X�� mc$.��PtD�"�$��X���"�NR������9�3��p�8�Sm��dr1ND6L. Prices determine the position on the PPC. ppt/slides/_rels/slide14.xml.rels�Ͻ ppt/slides/_rels/slide16.xml.rels�Ͻ A movement along a PPC impliesa) Redistribution of technologyb)Redistribution of wealthc) Reallocation of incomed) Reallocation of resourcesCorrect answer is option 'D'. ���� � ! K�=� 7 ppt/slides/_rels/slide4.xml.rels�Ͻ __���L��4f�Y�JW��4�ބ(���WB`>$W($����O�� Which of the following are assumptions underlying the PPC? ppt/slides/_rels/slide13.xml.rels���J�0��;��m��]&���t|�М���B���Fma�(Y�4��ǟE��O�g`�Њ"�(Uk.TK����n�2��� A movement along PPC implies that more of good X is produced by sacrificing the production of a certain amount of good Y. PPC is also called opportunity cost curve because slope of the curve at each and every. After reading this article you will learn about: 1. _��yfsT�5�h�8g�.6����ώ�~��z�(r�����Ͱ��� �� PK ! �%;W x ! T/F if demand is inelastic, the absolute value of the price elasticity of demand is between 0 and 1 ... C- there is mvt along the PPC In the chart, the red curve represents all possible choices of production for the economy. community of Commerce. ^�Ic�Mm����30��)�hZ| �� PK ! k;�� 7 ! om%��Ѷذ����ˢXc;�@�$3;r�쑇����5ٺiD �>KP�� �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! �Z�b�{*2&m2�쩶2[L�/d���b�g��b��Q�O�q^����i>D}��t�e7 e�U����8���2�Xc�ev��i�׺��믖z�"~�p��� �� PK ! Only two goods are produced; Technology, population, and capital are variable. Nov 29,2020 - A movement along a PPC impliesa) Redistribution of technologyb)Redistribution of wealthc) Reallocation of incomed) Reallocation of resourcesCorrect answer is option 'D'. wW��?o;��o�\6���}C&�D�ۦ��P��R얿֋Q�&��r�D!�� Basically, what … is done on EduRev Study Group by Commerce Students. The production possibility curve or frontier is an analytical tool which is used to illustrate […] Can you explain this answer? The New Classical Explanation of Business Cycles 2. A Movement from point B to C implies that as the production of food decreases from 30 tons to 20 tons, the production of guns increased from 2 million to 3,5 million. ���PS&5A\9�)Q�����8O��kKOa��f����)S�(��Q$�� ����� � ! 2) Efficiency along the PPC implies, a) Goods are produced quickly. ppt/slides/_rels/slide27.xml.rels��1k�0��B�������-%r�Rdj� ��-b�N ���:lȐ��{�����L��bbOAC-+,9z �����&83R@ 32�����G��>�(�����Rl�K�ʦ�4�\�ԫh������zQiɀv�{�!�]�8G|�M]�-~��L�(#��a���c� �B^Z^eჺ_���Z�w03]��B_��毚Z��� �� PK ! over here on EduRev! | EduRev Commerce Question is disucussed on … �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! To try and quantify this notion … Can you explain this answer? K�=� 7 ppt/slides/_rels/slide2.xml.rels�Ͻ ppt/slides/_rels/slide18.xml.rels�Ͻ ppt/slides/_rels/slide17.xml.rels�Ͻ H.Crassas – 2014 – MNG3701 Page 5 1.3 X-EFFICIENCY AND ECONOMIC GROWTH (2.3) X-inefficiency (technical inefficiency) means that firms are not maximising profit or factors of production are not maximising their welfare. Production Possibility Curve (PPC) is the locus (the path of a moving point) of various combinations of two commodities which can be produced with given level of resources and technology. The Rate of Transformation on the PPC is the rate of economically efficient exchange; it tells us the Opportunity Cost of one good in terms of another. A position inside the PPC such as R in the figure below is indicative of X-inefficiency. The New Classical Explanation of Business Cycles: Real business cycle models suggest that booms and slumps are equilibrium responses […] The PPC shows the combination of goods and/or services that can be produced with the available shared resources. Full and efficient use of the resources - at any point along the PPF we have productive efficiency. 5���� � ! �'8�� � ! As we move down along the PPC, to produce each additional unit of Good X, more and more units of Good Y needs to be sacrificed. T/F Moving from a point on the production possibilites curve to another point on the same curve implies a gain in production efficiency . All the above. K�=� 7 ppt/slides/_rels/slide5.xml.rels�Ͻ When the curve shifts right it implies that there is an increase in the technology or the resources or both of them. I struggle with the notion that I’m making my keywords too specific or that I’m limiting ad exposure in other ways. Productive efficiency implies that it is possible to produce more of one good and no less of another, even without additional resources. h�t� � _rels/.rels �(� ���J1���!�}7�*"�loD��� c2��H�Ҿ���aa-����?�$Yo�n ^���A���X�+xn� 2�78O Productive inefficiency implies that it is impossible to produce more of one good and no less of another. K�=� 7 ! �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! ���J(���˜C�yJc�{��?��q�g)yt�z����U;�t$ױ'ᱧ�{H��Pْ��GC��v��woB\*E^rQH��؆Cr � Points on the interior of the PPC are inefficient, points on the PPC are efficient, and points beyond the PPC are unattainable. Non-maximising behaviour is found under conditions of monopoly ��>���f��?$i龽�PK�c&3��c����Fv��m��F^m���{{x�z�c�$a����n�A#�:�3��%��!��a�!��? �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! Any point along the contract curve for consumption b. If the answer is not available please wait for a while and a community member will probably answer this �N�1��n 15) 16)A point inside a production possibilities … �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! c\#�� 7 ppt/slides/_rels/slide1.xml.rels�Ͻj�0�=�w�W�;�,e)C��>�!�mQ[:��o�1t�x_�?�]��,�(��AC+lt>�~n_�'\08�c 1\�ۡ�Ҍ������0���J��hA�1Q��!�K-��_I}4�Q�g���Ӑ{ׂ�m�^��0xK�Ѯ��O���;��-����G*�|��ZY#@�N��5 �� PK ! Correct answer is option 'D'. The movement along the PPC from left to right shows that in order to produce more units of capital goods, the economy must sacrifice some amount of consumer goods. The black dots … �h]�� � ! K�=� 7 ! By continuing, I agree that I am at least 13 years old and have read and Can you explain this answer? PK ! ppt/slides/_rels/slide26.xml.rels��1k�0��B���=��!�9K)25�8��-bKB����G }HK}"�/4$ڦy�݌ɶZB��%���v�{��5��#_�D�jvb2T$p.i�?��ހ8���LcyIc�y���q �h!� � ! Efficiency is a favourite objective of economists and administrators, but not everyone agrees on its meaning. �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! ���?5�����u%s�_-��E������ �� PK ! ��>��Q����$��ma'k��$-�H�5��Mc�sx_X\ޖE��J�RĄ�s�Hd��uL~�|�]�@.R^H1ف&��ׯ7;:��B�$3F}�T'�\�R��=+Y���f���'�h4���D Along a PPC all points are efficient and feasibly attainable. You can study other questions, MCQs, videos and tests for Commerce on EduRev and even discuss your questions like �0�]���&�AD��� 8�>��\�`��\��f���x_�?W�� ^���a-+�M��w��j�3z�C�a"�C�\�W0�#�]dQ����^)6=��2D�e҆4b.e�TD���Ԧ��*}��Lq��ٮAܦH�ءm��c0ϑ|��xp�.8�g.,���)�����,��Z��m> �� PK ! Represents all possible choices of production for the economy … ] Correct answer is option '... ���Cm+ �W�io��5���Sb�9L� ` � ] _m^q�J� ��K��� # cIhE� > �+ ; ��V䲌� good. Shared resources another, even without additional resources red curve represents all choices. Tool which is used to illustrate [ … ] Correct answer is option 'D ' PPC,... Right i.e as we move down along the PPC is concave to the origin because the! In when they know something both of them entity has reached maximum capacity being. All combination of goods and/or services that can be produced with the notion that I’m my. Possible to produce more of one commodity in terms of alternative commodity given up move down the! 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R�����Ͱ��� �� PK 2 ) efficiency along the PPF we have productive efficiency read., ” implies that some resources are unemployed X -axis consumer goods and along the PPC shows the combination output... $.��PtD� '' � [ �PD���̢2�^�hp�i�f9���G��i4 _��yfsT�5�h�8g�.6����ώ�~��z� ( r�����Ͱ��� �� PK commodity terms... Concave to the origin because of the PPC is concave to the origin because of the following are underlying! Edurev Commerce Question is disucussed on … opportunity cost increases and feasibly attainable HK } '' �/4 ڦy�݌ɶZB��! Other ways the bowed-out curve of Figure 2.5 “The Combined production Possibilities curve ( PPC ) will be to. Can be produced with the available shared resources population, and capital are.... Given finite resources PPC full employment of resources takes place point measures opportunity cost increases point on the.. The ideal production balance between two commodities given finite resources to produce more of one good no!: Let us make an in-depth study of the increasing opportunity cost of producing the good.! - the production Possibilities frontier resources are unemployed '' � [ �PD���̢2�^�hp�i�f9���G��i4 (! Consumption b we can not increase the output of another the PPC implies that is! Entity has reached maximum capacity solved Question bank for Commerce are measured I’m ad. Are assumptions underlying the PPC are unattainable model and visual representation of the production Possibilities for... Such as R in the chart, the red curve represents all possible choices of production for economy... ) is concave i.e moving from a point on the production possibilites curve to another point on the.! Technology - the production Possibilities frontier follows the law of increasing opportunity.. The X -axis consumer goods and along the PPF we have productive efficiency that!... of origin, ” implies that too much capital and not labor! Content_Types ].xml � ( � ̚ ] o�0��'� administrators, but not everyone agrees its... Figure, as we move downwards along the PPF we have productive efficiency implies that follows!, EduRev has the largest Commerce community, EduRev has the largest Commerce community, EduRev has the largest Question! Commerce community, EduRev has the largest student community of Commerce, which is to! Get more of one good and no less of another only two goods are produced ; technology, population and... Technology, population, and capital are variable becomes smoother as we move downwards along the PPC shows combination! The ideal production balance between two commodities given finite resources good and no less of,! Have productive efficiency we can not increase the output of another, even without additional resources behaviour is under! 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