Explain the three situations whereby the production point is located within the PPC, on the PPC and outside the PPC?

Expert Solution

1 - Point inside PPC - If a certain point lies insde PPC it denotes the inefficient combination of production. When the economic resources are underutilised , or there is inefficient technology or shortage or resouces , the point will lie inside PPC

2 - Point on PPC - The point on PPC curve denotes the efficient combination of the production of goods. This denotes that the resources in the economy are beng fully utilised and economy is working upto potential

3 - Point outtside PPC - This denores the attainable combination . The economy can only reach this point if the quantity of resources increase or there is improvement in technology. It is also called the unattainable combination.

Rahul Sunny answered 2 years ago

Given a Production Possibilities Curve (PPC) model describing combinations of production goods within a country or...

Given a Production Possibilities Curve (PPC) model describing combinations of production goods within a country or describing economic growth or inefficiencies, relate the model assumptions to the situation shown in the graph (model) and draw conclusions.

Take a circle tangent to three lines and located outside of the triangle defined by these...

Take a circle tangent to three lines and located outside of the triangle defined by these lines. Take the three points of tangency and prove that the three corresponding Chevians pass through one point.

The Production Possibilities Curve (PPC) is a model widely used in economics to explain various economic...

The Production Possibilities Curve (PPC) is a model widely used in economics to explain various economic problems and theories especially the trade-offs associated with allocating resources between the productions of two goods. The PPC can be used to illustrate the opportunity cost, efficiency, inefficiency, economic growth, and contractions. This concept is also helpful to explain the central problems of what, how and for whom to produce. China is one of the fastest growing economy in the world. The country is...

In the context of production possibilities curve (PPC), explain how an economy can achieve economic growth?

Explain three conditions with examples whereby a disposal is treated as a control transfer

Three point charges are located at the corners of an equilateral triangle as in the figure...

Three point charges are located at the corners of an equilateral triangle as in the figure below. Find the magnitude and direction of the net electric force on the 1.70 µC charge. (A = 1.70 µC, B = 7.20 µC, and C = -4.30 µC.) Magnitude N Direction degree (Counterclockwise from the + X-axis)

Discuss how does a PPC (Production possibility curve) explain the concepts of tradeoffs (opportunity cost), attainable...

Discuss how does a PPC (Production possibility curve) explain the concepts of tradeoffs (opportunity cost), attainable and unattainable output combinations, and efficiency. What kinds of decisions would make a PPF expand over time? What kinds of decisions would make it contract over time?

explain the situations that are related to the transfer of products between divisions located in different...

explain the situations that are related to the transfer of products between divisions located in different countries. illustration 8B-1 from your textbook, Weygandt, Kimmel, & Kieso (2015, p. 337). What conclusion can you come to after analyzing the data in Illustration 8B-1? There, a company's after-tax contribution margins are compared using a unit transfer price of $ 18.00 versus a unit transfer price of $ 11.00 (Weygandt, Kimmel, & Kieso, 2015, p. 337).

Three equal positive point charges of magnitude Q = 10.00μ C are located at three corners...

Three equal positive point charges of magnitude Q = 10.00μ C are located at three corners of a square of edge length d = 10.5 cm. A negative charge -30.00μ C is placed on the fourth corner. At the position of the negative charge, what is the magnitude of the electric field due to the three positive charges? What is the magnitude of the attractive force on the negative charge?

Three point charges are located on the corners of an equilateral triangle 50cm side: The charge...

Three point charges are located on the corners of an equilateral triangle 50cm side: The charge q_1 = + 10µC is at the origin, The charge q_2 = + 9µC in the upper corner of the triangle, at charge q_3 = -6 µC located at the x axis What is the value of the potential energy of the system of the three charges?

Question