What is a point outside the PPF?
A point inside the production possibility frontier means that the production that that point is feasible but the resources are not efficiently used. A point outside the production possibility frontier means that production at that point is not feasible using the avalilable resources or technology.
What are the unattainable points of a PPF?
Points outside the PPF such as point G are unattainable. We can produce at any point inside the PPF or on the frontier. Full employment occurs when all the available factors of production are being used. Unemployment occurs when some factors of production are not used.
What do points inside and outside the PPF indicate?
In the PPF, all points on the curve are points of maximum productive efficiency (no more output of any good can be achieved from the given inputs without sacrificing output of some good); all points inside the frontier (such as A) can be produced but are productively inefficient; all points outside the curve (such as X …
What does a point below the PPF indicate?
Any point below this curve indicates that the resources are not fully and efficiently used. Therefore, at point H, resources are under-employed.
What do the points along not inside the PPF represent quizlet?
Points inside the production possibilities frontier represent inefficient levels of production. Points on the production possibilities frontier represent efficient levels of production. Points outside the production possibilities frontier represent infeasible levels of production.
What is attainable and unattainable combinations?
In a Production Possibility Curve (PPC) that represents the production of two goods, the points that lie on the curve shows the attainable combination (efficient) and those points that lie within the curve also shows attainable combination but it is inefficient production.
What are attainable and unattainable combinations?
In a Production Possibility Curve (PPC) that represents the production of two goods, the points that lie on the curve shows the attainable combination (efficient) and those points that lie within the curve also shows attainable combination but it is inefficient production.
Why are points outside PPF not feasible?
PPF and the Pareto Efficiency Conversely, any point outside the PPF curve is impossible because it represents a mix of commodities that will require more resources to produce than are currently obtainable.
What does it mean if a point is inside the production possibility curve?
Production points inside the curve show that an economy is not producing at its comparative advantage, and production outside the curve is not possible.
What do points outside of the PPF indicate quizlet?
A point outside the production possibilities curve represents a combination of goods that is: unattainable.
What do points inside of the PPF represent quizlet?
Points inside the production possibilities frontier represent inefficient levels of production.
What is attainable and unattainable combinations in economics?
An attainable combination is the set or combination of two goods which is feasible by the economy to manufacture with the available resource allocation and technology. Unattainable combination is the combination of two goods which is not possible to be produced with allocated resource and available technology.
What does unattainable mean in economics?
All points outside of the curve are unattainable (because they require more resources than are available) without trade with an external producer (such as is the case with international trade). All points within the curve are attainable but productively inefficient.
What are unattainable combinations of PPC?
Unattainable combination is the combination of two goods which is not possible to be produced with allocated resource and available technology.
Why is it impossible for the economy to be outside or above the PPF?
PPF and the Pareto Efficiency Conversely, any point outside the PPF curve is impossible because it represents a mix of commodities that will require more resources to produce than are currently obtainable.