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Issues in Economics Today 7th Edition by Robert Guell
Edition 7ISBN: 978-0078021817Issues in Economics Today 7th Edition by Robert Guell
Edition 7ISBN: 978-0078021817 Exercise 2
The underlying reason that there are unattainable points on a production possibilities frontier diagram is that there
A) is government.
B) are always choices that have to be made.
C) is a scarcity of resources within a fixed level of technology.
D) is unemployment of resources.
A) is government.
B) are always choices that have to be made.
C) is a scarcity of resources within a fixed level of technology.
D) is unemployment of resources.
Explanation
Verified
Verified
A production possibility frontier is a graph that represents the different amounts of goods than can be produced in a fully employed society. The unattainable levels of production are those that are not possible with the given resources and technology. The government is neither a resource nor a technology.
Hence, option (a)is wrong.
A production possibility frontier is a graph that represents the different amounts of goods than can be produced in a fully employed society. The unattainable levels of production are those that are not possible with the given resources and technology. The choices of allocation of resources cannot state unattainable points.
Hence, option (b)is wrong.
A production possibility frontier is a graph that represents the different amounts of goods than can be produced in a fully employed society. The unattainable levels of production/points on the frontier are those that are not possible with the given resources and technology. The reason that there is fixed unemployment of resources can state nothing about unattainable points.
Hence, option (d)is wrong.
Scarcity implies something that is not freely available or lacking the infinite source. A resource is considered something that can be consumed directly or can be used to make things that will be consumed. Society has four basic resources: land, labor, capital, and entrepreneurship.
Production Possibility Frontier is a graph that represents the different amounts of goods than can be produced in a fully employed society. The unattainable levels of production/points on the frontier are those that are not possible with the given resources and technology. With the scarcity of resources and a given level of technology, there will be some unattainable points on the frontier.
Hence, option (c)is correct.
Hence, option (a)is wrong.
A production possibility frontier is a graph that represents the different amounts of goods than can be produced in a fully employed society. The unattainable levels of production are those that are not possible with the given resources and technology. The choices of allocation of resources cannot state unattainable points.
Hence, option (b)is wrong.
A production possibility frontier is a graph that represents the different amounts of goods than can be produced in a fully employed society. The unattainable levels of production/points on the frontier are those that are not possible with the given resources and technology. The reason that there is fixed unemployment of resources can state nothing about unattainable points.
Hence, option (d)is wrong.
Scarcity implies something that is not freely available or lacking the infinite source. A resource is considered something that can be consumed directly or can be used to make things that will be consumed. Society has four basic resources: land, labor, capital, and entrepreneurship.
Production Possibility Frontier is a graph that represents the different amounts of goods than can be produced in a fully employed society. The unattainable levels of production/points on the frontier are those that are not possible with the given resources and technology. With the scarcity of resources and a given level of technology, there will be some unattainable points on the frontier.
Hence, option (c)is correct.
Issues in Economics Today 7th Edition by Robert Guell
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