Multiple Choice
Which of the following manufacturing processes involves products that cannot be broken into discrete units?
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2. Introductory Economic Models
Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
On a production possibilities frontier (PPF) graph, where would a point representing underutilization of resources appear?
A
On the PPF curve
B
At the origin
C
Outside the PPF curve
D
Inside the PPF curve
Verified step by step guidance1
Understand that the Production Possibilities Frontier (PPF) represents the maximum possible output combinations of two goods that an economy can produce using all available resources efficiently.
Recognize that points on the PPF curve indicate efficient use of resources, where the economy is producing at its full potential.
Know that points outside the PPF curve are unattainable with current resources and technology, representing production levels beyond the economy's capacity.
Identify that points inside the PPF curve represent underutilization of resources, meaning the economy is not using all its resources efficiently or fully.
Therefore, a point representing underutilization of resources would appear inside the PPF curve, indicating that the economy could increase production without sacrificing output of either good.
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