Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / In a typical production possibilities frontier that is negatively sloped and "bowed outward" from the origin where resources are fully utilized in the production of cars and computers, when the current production of cars and computers is efficient: Select one: a
In a typical production possibilities frontier that is negatively sloped and "bowed outward" from the origin where resources are fully utilized in the production of cars and computers, when the current production of cars and computers is efficient:
Select one:
a. It is not possible to rearrange production to produce less cars and more computers.
b. It is not possible to rearrange production to produce less cars and less computers.
c. It is not possible to rearrange production to produce more cars and less computers.
d. It is not possible to rearrange production to produce more cars and more computers.
A production possibility curve represent the production of two type of goods in any economy over a given period of time in various combination
The shape is generally bowed outwards
It follows the law of increasing opportunity cost
Here the two good produced are cars in computers
Now according to question if it is said that the current production of cars in computer is efficient it means the production is done on the production possibility Frontier
So it is possible to arrange this production less than or equal to it but with the given resources and technology it is not possible to rearrange production to produce more cars and more computer because if it happens then production possibility curve shift outwards but we do not have enough resources and technology to do this
The correct answer here is option d
