The following question(s) relate(s) to the material in the addendum to Chapter 2. When a firm or economy is operating efficiently, it is operating on its production possibilities frontier If an economy is producing inefficiently a) it is possible to increase production of all goods simultaneously b) it is possible to increase production of one good at the expense of another This preview shows page 2 - 5 out of 6 pages. An economy is producing two goods, ice cream and cookies, and is currently operating efficiently. b. it is possible to produce more of both goods without increasing the quantities of inputs that are being used. Refer to Table 2-4. Suppose near the end of one-day Betty still has 12 loaves of bread on hand. An economy will operate on the production possibility frontier if all the accessible resources are utilized efficiently. This economy can produce more cookies if: That when resources are currently being used inefficiently, it is possible to d. at the x- or y-axis intercepts of the B. C-it is possible to produce more of one good without producing less of the other. If an economy is operating inside its production possibilities frontier: A) it is producing efficiently. c. equal amounts of the two goods are being produced. When a dynamic labor market is operating efficiently, mostly cyclical unemployment will be present. c. on the production possibility curve. Necessary conditions for market efficiency. (Co-)operating efficiently and safely from a distance But one thing is certain: production processes must continue or restart, and interrupted new projects must be resumed as soon as possible. b. more of one good can be produced without producing less of another. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. 0. D) scarcity can be eliminated. c. on the production possibility curve. d. it is producing the maximum output with … ECO 450 Week 5 Mid Term . 22. C) The curve needs to shift inward. Inputs would typically be money (cost), people (measured either as headcount or as the number of full-time equivalents) or time/effort. If Kenneth is willing to sell his old table saw for $50 and manages to get $80 for it, he receives producer's surplus of: Xavier hires Yolanda to construct a rock garden in front of Xavier's house. B)A large amount of unemployed resources will shift the production possibilities curve outward. A production possibilities curve illustrates how efficient an economy is by indicating the possibly opportunities in the economy. Which of the following about unemployment is true? Given what is technologically feasible, something can or cannot be done. possibilities data for Lebos and Slavia below to answer the question(s). When it is at full employment, it operates on the PPC. QUESTION 58 Which of the following is true when an economy is producing efficiently? c. it is not possible to produce more of one good without less of another good. 125. b) consumers will not want more of both goods. c. it is possible to produce more of one good without producing less of another good. Last year, its economy was operating efficiently at point A. The more specialized the resources, the more bowed out the production possibility curve. Penny is piano teacher and Dan is a tile layer. The opportunity cost is zero, because the economy is operating at full capacity b. c. output can only be d. Recent Posts. B. If an economy is producing inefficiently, it is 37. Which of the following is correct. when is an economy operating inefficiently? When an economy is in a recession, it is operating inside the PPC. Increasing If An Economy Is Operating At A Point That Is Inside Of Its Production Possibilities Frontier, Then It Can Be Assumed That Its Resources Are: Misallocated. If an economy is producing efficiently, then it is possible for that economy to produce more of one good without producing less of the other. Get step-by-step explanations, verified by experts. Definition FALSE. When a firm or economy is operating efficiently, it is operating. resources are limited (scarce) and efficiency implies that all are already in use. Comparative advantage leads to producing at a: lower opportunity cost. When an economy is in a recession, it is operating inside the PPC. The production possibilities curve illustrates: A. A. treats a dollar spent on candy bars the same as a dollar spent on education. When an economy is operating efficiently the production of more of one good from ECO ECO2013 at Florida State University D. It produces less ice cream. Something that is technologically efficient may not be economically efficient. National Welfare Fund (Russia): One of two parts of the Russian sovereign wealth fund, the other being the Reserve Fund. An economy is producing efficiently only if it is operating a. outside the production possibility curve. d. at the x- or y-axis intercepts of the production possibility curve. D) scarcity can be eliminated. When it is at full employment, it operates on the PPC. African sleeping sickness is due to (a) Plasmodium vivax transmitted by Tsetse fly (b) Trypanosoma lewsii transmitted by Bed Bug (c) Trypanosoma gambiense transmitted by Glossina palpalis (d) Entamoeba gingivalis spread by Housefly. To capitalize on its favorable climate for growing these fruits, the country decides to build some islands near … The economy cannot produce more of one good without simultaneously reducing the output of another good. Goods and services are being produced using the most resources. Goods and services are being produced using the most resources. It is important to maximize resources because goods are being produced most efficiently. When a firm or economy is operating efficiently, it is operating on its production possibilities frontier. you use your limited resources to produce the goods and services that you want to consume, the difference between the highest price a buyer is willing to pay and the price actually paid, the different between the lowest price a seller is willing to accept and the price actually received, as production of a good increases, the opportunity cost of producing that good increases, a benefit or a cost of an activity that affects third parties, represents the maximum combinations of two goods that an economy can produce, an increase in the productive capacity of an economy, the ability to produce more output per resource. Asked Feb 09, 2015. QUESTION 58 Which of the following is true when an economy is producing efficiently? *Any point on a country’s PPF represents a combination of two goods that an economy can produce using all available resources and technology. 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