Since it is a boundary line it is called a frontier. ... Why is a production possibilities frontier typically drawn as a curve, rather than a straight line? Draw a production possibilities frontier (PPF) based on the data in your table and explain the condition necessary for a PPF to exhibit constant opportunity costs. Therefore the opportunity cost of mugs in terms of A straight-line production possibilities frontier indicates that _____ A)the problem of scarcity does not exist. 2. I. A production possibilities frontier showing health care and education. C. is illustrated by a point outside the production possibilities curve. At A all resources go to healthcare and at B, most go to healthcare. D)technology is rapidly expanding. D) there are no opportunity costs. D. is illustrated by a point inside the production possibilities curve. there is no tradeoff involved in switching between one good and the other good. ELI5:Why is a production possibility frontier displayed as a curve, rather than a straight line? Question 1 A production possibilities frontier is a straight line when Not yet answered Select one: Points out of 1.00 a. the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. The PPF is a straight line when the resources used to produce the two products are perfectly interchangeable, and thus the opportunity cost of producing more units is constant. Explain the difference between a bowed out PPC and a straight line … ... E. a straight diagonal line sloping downward from left to right. B. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good. Economics In Economics, I'd expect a PPF graph to be a straight line between using all resources to produce Product Y and all resources being used to produce product X. Production points inside the curve show an economy is not producing at its comparative advantage. Use the following to answer questions 28-29: 28. Answer: Because Angela’s productivity in pot and mug production is constant – it doesn’t depend on how many mugs or pots she is making. This is because its slope is given by the relative prices of the two goods, which from the point of view of an individual consumer, are fixed, so the slope doesn’t change. The budget constraints presented earlier in this chapter, showing individual choices about what quantities of goods to con The production possibilities frontier (PPF) is curved because the cost of production is not constant. Draw a PPC demonstrating what a point on, inside and outside of the curve represents. If the production possibilities frontier is a straight line, a.its slope will equal -1 b.resources must not be used efficiently c.resources must be unemployed d.society must not be using the latest technology e.resources must be equally adaptable at producing … Because a company’s ability to produce two distinct items is not always equal, the chart reveals a … These values are plotted in a production possibilities curve for Plant 1. -----If the production possibilities curve is a straight line: Here's the straight frontier line again. A Healthcare vs. Education Production Possibilities Frontier This production possibilities frontier shows a tradeoff between devoting social resources to healthcare and devoting them to education. A production possibilities frontier is a straight line when Select one a the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. In the above diagram, the new technique results in wine production that is double its previous level for any level of grain production. C) the opportunity costs of the products are constant. If every trade-off were the same, it would create a straight line. This chart is also termed a “production possibility frontier,” or, PPF. Scarcity 2. The production possibilities frontier is a downward-sloping straight line when. The PPF simply shows the trade-offs in production volume between two choices. The particular mix of goods and services being produced—that is, the specific combination of healthcare and education chosen along the production possibilities frontier—can be shown as a ray (line) from the origin to a specific point on the PPF. A. increasing the production of one good by x units entails no opportunity cost in terms of the other good. So throughout the production process, the marginal opportunity of producing each additional unit will remain constant. A straight line downward sloping frontier means that the opportunity cost of production is constant. A production possibility frontier that is a straight line sloping down from left to right suggests that: A) more of both goods could be produced moving along the frontier. 27. When an economy produces a combination of goods that lies on the production possibilities frontier, Where does the PPF come from? As far as i know it can be either concave, convex or a straight line. 129. Finally, if the two products are very similar to one another, the production possibility frontier may be shaped more like a straight line. If opportunity costs are constant, the production possibilities frontier is graphed as a _____. The production possibilities frontier is concave to the origin because of the law of increasing costs. All choices along the curve shows production efficiency of both goods. But the direction that PPF is curved comes from the way that the trade-offs change. If the production possibilities frontier is a straight line, A. its slope will equal -1 B. resources must not be used efficiently C. resources must be unemployed D. society must not be using the latest technology E. resources must be equally adaptable at producing either product 130. a. positively sloped straight line b. negatively sloped curve bowed in toward the origin The production possibilities curve is also called the PPF or the production possibilities frontier. E)some resources are not being used efficiently. … Define a production possibilities frontier (curve). A production possibilities frontier defines the set of choices society faces for the combinations of goods and services it can produce given the resources available. Thanks, Heather A production possibilities frontier will be a straight line if? A … Past the production-possibility frontier, returns start to diminish and the business becomes less efficient. The shape of the PPF is typically curved outward, rather than straight. B)resources are imperfect substitutes. B. can exist at any point on a production possibilities curve. The production-possibility frontier determines whether a company is using its resources efficiently or not. A. causes the production possibilities curve to shift outward. At this point, Econ Isle can produce 12 gadgets and 0 widgets. Question: Question 11: A Production Possibilities Frontier Is A Straight Line When (a) The More Resources The Economy Uses To Produce One Good, The Fewer Resources It Has Available To Produce The Other Good. This curve throws light on the problems of scarcity and choice and illustrates the concept of opportunity cost which is a key concept for decision making and resource allocation. The first is the fact that the budget constraint is a straight line. B) the two products must have the same price. Health care is shown on the vertical (or y) axis, and education is shown on the horizontal (or x) axis. 1. 14. Its simple why the PPF is represented on a curve and not on a line because the ability to show under production( i.e inside the PPF) or outward shift in the PPF because of improvement in technology can be represented on a straight line and it becomes difficult rather impossible to represent PPF on a straight line. Any society’s economic problems can be illustrated by using the production possibilities curve. The production-possibility frontier is an economic concept used to describe how much a company can rationally be expected to produce. C)opportunity costs are constant. This means that the resources are perfectly substitutable in the production of two goods. (b) An Economy Is Interdependent And Engaged In Trade Instead Of Self- Sufficient (c) The Rate Of Tradeoff Between The Two Goods Being Produced Is Constant. When making this graph, a business considers many variables: Its access to resources, strengths and skill set. C. the economy is producing efficiently. 3. 15) A production possibilities frontier will be a straight line if _____. Productive Efficiency The Bowed-Outward (Concave-Downward) PPF: Increasing Opportunity Costs C. Law of Increasing Opportunity Costs D. Economic Concepts in a PPF Framework 1. Production Possibility curves can assume different slopes. The Shape of the PPF and the Law of Diminishing Returns. The Production possibility frontier is typically drawn as a curve because of the assumption of rising marginal rate of technical substitution. b. an economy is interdependent and engaged in trade instead of self-sufficient. Microeconomics Basic Economic Concepts Production–possibility frontier. The Straight-Line PPF: Constant Opportunity Costs B. it is possible to switch between one good and the other good at a constant opportunity cost. So let's compare straight and curved frontier lines to better understand what is more likely to happen when production changes. 1 Answer ... Konstantinos Michailidis Sep 24, 2015 Its always drawn as a curve and not a straight line because there a cost involved in making a choice i.e when the quantity of one good produced is higher and the quantity of the other is low. The curve is a downward-sloping straight line, indicating that there is a linear, negative relationship between the production … d. Why is her production possibilities frontier a straight line instead of bowed out like those presented in Chapter 2? The first is the fact that the budget constraint is a straight line. THE PRODUCTION POSSIBILITIES FRONTIER A. It shows that Econ Isle can produce a maximum of 12 gadgets and 6 widgets or any other combination along the line. A production possibilities frontier will be bowed out if In general, along a production possibilities frontier is a straight line, the marginal opportunity cost is constant, because, the amount of one good we have to give up …