E. increase in consumer spending. The production possibilities curve may shift outward as a result of a (n)A. increase in worker training courses.B. C.increase in short run aggregate supply. D.decrease in short run aggregate supply. As the nation’s capital stock increases, the production possibilities curve shifts outward to PPC 2. B. if production occurs outside the production possibilities frontier. Question: 78) When The Production Possibilities Curve Shifts Outward 78) A) The Long-run Aggregabe Supply Curve Shifts To The Right. 3. Which of the following events would allow the production possibilities curve to shift outward? When the curve shifts to the right, it causes an increase in the output and a decrease in the GDP at a given price. The production possibility curve is a curve that represents the total number of goods and services that can be produced in an economy given certain levels of resources in the economy, the productions possibility curve helps check whether an economy has idle resources and if an economy produces optimally then this will result into economic growth, there are factors that lead to a shift in … Outward or inward shifts in the PPF can be driven by changes in the total amount of available production factors or by advancements in technology. decrease in costs of production.C. Outward on one axis only. The simplest way to show economic growth is to bundle all goods into two basic categories, consumer and capital goods. increase in consumer spending. ... sympathetic activation of the 'fight or flight' response is atypical because to react quickly to a threat the adrenal … The production of a good has an opportunity cost. To see this relationship more clearly, examine Figure 2.3 “The Slope of a Production Possibilities Curve”.Suppose Plant 1 is producing 100 pairs of skis and 50 snowboards per month at point B. B) Production-possibilities curve will shift inward. However, the fixed factor does not stop the curve’s ability to shift outward. If you can remember the following five changes in resources, then you can determine that the production possibilities curve has also changed. Economic growth would best be represented by a: Shift outward of the production-possibilities curve. SURVEY . Shift inward of the production-possibilities curve. Alternatively, if there is economic growth, it shifts the production possibilities curve outward, as in Panel (b). Examples of events that cause the curve to shift to the right in the short-run include a decrease in the wage rate, an increase in physical capital stock, and technological progress. This revision presentation looks at the economics of the production possibility frontier Most of you will be introduced to this topic early on in your micro course. C. Improved technology or more resources or both. A decline in technology or fewer resources or both. 19. The production possibilities curve may shift outward as a result of a(n) A. increase in worker training courses. As time passes, the production possibilities frontier shifts outward due to the accumulation of … The production possibilities curve is an illustration of what? Its production possibilities curve will shift inward C. Its production of consumer goods will increase. An increase in an economy’s productive potential can be shown by an outward shift in the economy’s production possibility frontier (PPF). when this happens, the entire production possibilities curve “shifts to the right.” d. a decrease in resources B) The Long-run Aggregate Supply Curve Is Unchanged C) The Long-run Aggregate Supply Curve Shifts To The Left. 1 Macroeconomics LONG FREE-RESPONSE SAMPLE QUESTIONS Answer Key UNIT CONSUMER GOODS CAPITAL GOODS CONSUMER GOODS CAPITAL GOODS CONSUMER GOODS Less government spending C. Better training of employees which resulted in increased productivity D. Productive inefficiency as a result of inadequate factory maintenance economies have a production possibility curve and there any many different things that effect it. decrease in the unemployment rate will shift an production possibilities curve outward. An outward shift of a PPF means that an economy has increased its capacity to produce. Answer: D Type: Complex Understanding Page: 9 38. Its production possibilities curve will shift outward. Over time, the production possibilities curve can shift. An increase in demand at lower market prices B. 1. D. Its production of consumer goods will decrease. D. Improved technology or fewer resources or both. A shift outward of the production possibilities curve. False This is a correct answer _____ Question 3 (Worth 5 points) If demand increases and supply simultaneously decreases, equilibrium price will rise. Causes of shifts in labor demand curve. Starting at point A, an increase in jacket production requires a move down and to the right along the curve, as shown by the arrow, and thus a reduction in the production of CD players. Change in the productive labor force (productivity). production-possibilities curve SHIFTS. Production of consumption goods falls to C B, and investment rises to I B. The production possibilities frontier is downward sloping: producing more of one good requires producing less of others. ... Outward on one axis only. An outward shift of the production possibility frontier may be caused by: A. Assuming depreciation remains I A, net investment is now positive. True This is a correct answer _____ Question 2 (Worth 5 points) The four factors of production are land, labor, capital, and government services. If the total amount of production factors like labor or capital increases, then the economy is able to produce more goods at any point along the frontier. c. a decrease in human capital. If a mass immigration occurs, the production possibilities curve can shift. D. Q. indicate whether the statement is true or false. Production possibilities, which analyzes the alternative combinations of two goods that an economy can produce with given resources and technology, indicates unemployment when production is inside the production possibilities curve.. Unemployment means resources that could be used for production are not being used. The entirety of the curve is made up of points at which the two commodities are being produced in different amounts, most efficiently using the limited resources that they require. Economic growth is represented by: A. b. a decline in economic development. Study & earn a 5 of the AP Economics Exam! the entire production-possibilities frontier SHIFTS. Change in the quantity and quality of natural resources. C. if resources are not used in production. No shift. Causes of shifts in labor demand curve The labor demand curve shows the value of the marginal product of labor as a function of quantity of labor hired. B. 30 seconds . 2. In the graph below, the production possibilities curve shifts outward to the right (for instance, through point F from the graph in the previous section), so that the country’s production … What Are Two Factors That Would Cause The Production Possibilities Curve To Shift Outward. Economic growth occurs when the economy realizes greater production levels. B. answer choices . A decline in technology or more resources or both. C) Production of non-military goods will increase. PPF Outward Shift - Theme 1 Micro This might come about either from the natural growth of a country’s population especially for nations with a low median age. This causes output to increase, so the production possibilities curve shifts outward, or to the right. Causes of Economic Growth. Tags: Question 6 . The Production Possibilities Curve shows up in both Microeconomics and Macroeconomics. Here you will get a thorough review of what the PPC is and how to analyze it. The key concepts of scarcity and choice are central to this model. On the other hand, let's say a major war causes destruction of capital equipment in the country. production possibilities frontier is operating efficiently Growth - if more resources become available, or if technology improves, an economy can increase its level of output and grow. decrease in short run aggregate supply.E. To the right. Shift the production possibilities curve to the left or inward. B. decrease in costs of production. For example: Steel was being used to produce the product, but now the supply of steel in the economy has reduced which has caused a reduction in overall production. An inward shift of the production possibilities curve. If you can remember the following five changes in resources, then you can determine that the production possibilities curve has also changed. 9th - 12th grade. 1. Change in the productive labor force (productivity). increase in short run aggregate supply.D. 3. Explain what may cause the curve to shift outward (to the right) or inward (to the left). Now consider what would happen if Ms. Ryder decided to produce 1 more snowboard per month. c. Movement from inside the production-possibilities curve to a point on the production-possibilities curve. Ceteris paribus, if Russia decreases the size of its military, then its: A) Production-possibilities curve will shift outward. 1 Answer to An outward shift of the production possibilities curve represents a. economic growth. For example Ethiopia has a median age of 17.8 years and Rwanda has a median age of 19.0 years. A left shift in the production possibility curve may be caused by a reduction in resources or inefficiency. D) Production of non-military goods will decrease. The production possibilities frontier is graphed as a curve, or arc. b. To the left. PPC/PPF DRAFT. On such a graph, one of the commodities is shown on the x-axis, while the other is shown on the y-axis. The production possibilities curve shifts outward in response to: Answer A. Change in the quantity and quality of natural resources. (G) What will happen to Hightechland’s production possibilities curve if technology improves ... and moves the curve outward. 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