Points on the production possibilities curve thus satisfy two conditions: the economy is making full use of its factors of production, and it is making efficient use of its factors of production. The PPC or production possibility curve/ frontier is a presumptive depiction of the different conceivable combinations of two goods that can be produced within the given available resource. 24, A point on the production possibilities frontier reflects an a attainable point with full employment of all resources b. attainable point without full employment of all resources -c. unattainable point with full employment of all resources d. unattainable point without full … C) a point outside the production possibilities frontier. c.) Reflects the fact that more technology needs to be developed to fully employ all resources. 41) Consider the PPF for office buildings and housing shown in the figure above. AACSB: Reflective thinking . This is the currently selected item. Clearly, such points cannot be production efficient. How does the production possibilities frontier show that every choice involves a tradeoff? PPCs for increasing, decreasing and constant opportunity cost. d.) Implies that too … International trade shifts the production possibilities frontier outward for the goods that are exported and inward for the goods that are imported. International trade shifts the nation's production possibilities frontier inward. Up to this point we've graphed the PPF as a straight line. The Production Possibilities Frontier Illustrates the Law of Increasing Opportunity Cost, Segment 3 ... Our final lesson focuses on the shape of the frontier line. Could indicate that resources are misallocated. Lesson summary: the production possibilities frontier. A point on the production possibilities frontier reflects an? However, a straight line doesn't best reflect how the real economy uses resources to produce goods. Is more efficient than a point on the production possibilities frontier. 3. This quiz has around twelve questions of the same topic; choose the correct answer. A) ... Any point on the frontier (line/curve) is attainable, any point inside the frontier is attainable, ad any point outside the frontier is unattainable. D) a point inside the production possibilities frontier. Image Transcriptionclose. b.) The Production Possibilities Frontier . International trade allows the nation to consume at a point outside its production possibilities frontier. Practice: Interpreting graphs of the production possibilities curve (PPC) Any point inside the frontier reflects production where one or both outputs may be increased without decreasing the other output level. Choices a.) If there are idle or inefficiently allocated factors of production, the economy will operate inside the production possibilities curve. 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