AACSB: Reflective thinking . The Production Possibilities Frontier Illustrates the Law of Increasing Opportunity Cost, Segment 3 ... Our final lesson focuses on the shape of the frontier line. 41) Consider the PPF for office buildings and housing shown in the figure above. 3. 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. D) a point inside the production possibilities frontier. c.) Reflects the fact that more technology needs to be developed to fully employ all resources. The production possibility frontier indicates the maximum production possibilities of two goods or services, assuming a fixed level of technology and only one choice between the two. The curvature of the PPF reflects increasing opportunity cost when substituting one type of Skill: Analytical. Up to this point we've graphed the PPF as a straight line. B) the midpoint of the production possibilities frontier. However, a straight line doesn't best reflect how the real economy uses resources to produce goods. Choices a.) Is more efficient than a point on the production possibilities frontier. Lesson summary: the production possibilities frontier. b.) Any point inside the frontier reflects production where one or both outputs may be increased without decreasing the other output level. 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. International trade shifts the production possibilities frontier outward for the goods that are exported and inward for the goods that are imported. 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. Image Transcriptionclose. Producing one good always creates a trade off over producing another good. Could indicate that resources are misallocated. A point on the production possibilities frontier reflects an? 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 Production Possibilities Frontier . This is the currently selected item. PPCs for increasing, decreasing and constant opportunity cost. International trade allows the nation to consume at a point outside its production possibilities frontier. How does the production possibilities frontier show that every choice involves a tradeoff? Answer: D. Topic: Production Efficiency. 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