b. there is no way to produce more of one good without producing less of the other. If an economy is operating inefficiently, then a. the economy can increase production of consumption goods without reducing capital goods. Identifies the amount of consumer goods produced per year if all the economy's resources are used efficiently to produce consumer goods. 9. If an economy is producing a combination of goods that places it inside the production possibilities curve then it has: idle factors of production or inefficient use of resources. However, as we move along the All Of The Economy QUESTION 58 Which of the following is true when an economy is producing efficiently? B) Getting the most goods and services from the available resources. Comparative advantage leads to producing at a: lower opportunity cost. A. When an economy is operating efficiently, the production of more of one good will result in the production of less of some other good because a. consumers do not want more of both goods. Your Answer: TIP: If it's not your answer to this question, please click "Leave a Comment" button under the question to communicate with the question owner. In this video, Sal explains how the production possibilities curve model can be used to illustrate changes in a country's actual and potential level of output. B. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. Something that is technologically efficient may not be economically efficient. When An Economy Is Operating Inside Its Production Possibilities Frontier, We Know That A. c. output can only be d. The economy is getting the fewest goods and services from the available resources. b. resources are limited (scarce) and efficiency implies that all are already in use. Macro_Chapter_1_study_guide_questions_13e, Macro_Chapter_16_study_guide_questions_13e. ____ When an economy is operating efficiently: a. domestic production exceeds the value of foreign output. c. an economy that is operating efficiently can have more of one good without giving up some of another good d. scarcity can be eliminated. QUESTION 6 The concave (bowed out) shape of the PPC indicates that a, as the production of one good rises, the opportunity cost of that production rises. B)A large amount of unemployed resources will shift the production possibilities curve outward. Plants have to be regularly maintained, commissioned, optimized or quickly converted to the production of alternative products, even though technicians cannot be personally on site. A-there is no way to produce more of one good without producing less of another good. It increases the price of ice cream. When an economy is operating efficiently the production of more of one good from ECO ECO2013 at Florida State University But … c. prices greatly exceed the production costs. c. it is not possible to produce more of one good without less of another good. 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. When an economy is in a recession, it is operating inside the PPC. QUESTIONS The economy is operating efficiently when O a technological change is occurring rapidly. When an economy is operating at a point on its production possibilities frontier, then a. consumers are content with the mix of goods and services that is being produced. a.some of one good must be given up to get more of another good in an economy that is oeprating efficiently. In summary, as long as the economy produces along the curve, the econ-omy is maximizing its resources. This is an example of: when an economy is operating efficiently: when an economy is operating inefficiently: the production possibilities frontier is: the capitalist vision sees private property as desirable because: the capitalist vision sees market prices as: the capitalist vision sees government as: the socialist vision sees government ownership of resources: in a market economy, the question of "what to produce" is determined by: in a market economy, the questions of "how to produce" is determined by: determining the "for whom to produce" question by the distribution of income means that: according to the book "Capitalism and Freedom": according to milton Friedman, the proper functions of government include: when is an economy operating efficiently? Everyone in the economy is happy. 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: A) efficiently allocated. D. It produces less ice cream. the production possibilities curve shifts inward as more of one good is produced. If an economy is producing efficiently, then a. there is no way to produce more of one good without producing less of another good. An economy will operate on the production possibility frontier if all the accessible resources are utilized efficiently. Economic efficiency depends on the prices of the factors of production. D) scarcity can be eliminated. B) over-utilized. Available resources are efficiently and fully employed d. at the x- or y-axis intercepts of the If the economy is operating on its PPF, this implies that: a. If the economy is operating at full employment and using resources efficiently, then an increase in spending for homeland security this year will: October 7, 2018 / in Brainy Term Papers / by Brainy. C) The curve needs to shift inward. If an economy is operating efficiently: a. the rich and poor have adequate access to the available goods and services. Introducing Textbook Solutions. oc the economy is producing on its PPC. Suppose near the end of one-day Betty still has 12 loaves of bread on hand. technological improvement can only improve the production of a single good. Operational efficiency is primarily a metric that measures the efficiency of profit earned as a function of operational costs. B-it is possible to produce more of both goods without increasing the quantities of inputs that are being used. An economy is producing two goods, ice cream and cookies, and is currently operating efficiently. When an economy is producing efficiently it is: A) Producing a combination of goods and services beyond the production-possibilities curve. This economy can produce more cookies if: A. It equals the highest level of production an economy can sustain for the long-run. possibilities data for Lebos and Slavia below to answer the question(s). The economy cannot produce more of one good without simultaneously reducing the output of another good. When an economy producing two goods is operating efficiently and at full employment, increasing the production of one good will result in a decrease in the amount of the other good that can be produced An economy that is operating inside its production possibilities curve could, by moving onto it, produce more of all the goods and services that people value, such as food, housing, education, medical care, and music. d. at the x- or y-axis intercepts of the production possibility curve. Last year, its economy was operating efficiently at point A. the rock garden increases the value of Xavier's house, and also increases the value of Xavier's neighbor Zelda's house. C)Idle factories represent unemployed Productive efficiency, on the other hand, is when an economy is using all of its resources efficiently, producing the greatest output for the smallest input. It increases the price of cookies. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. Learn vocabulary, terms, and more with flashcards, games, and other study tools. d. it is producing the maximum output with … 125. The following question(s) relate(s) to the material in the addendum to Chapter 2. It is important to maximize resources because goods are being produced most efficiently. An economy is producing efficiently only if it is operating a. outside the production possibility curve. •If the economy is operating on a point ON the curve, it is operating efficiently because it is a producing a mix of computers and bread that is the maximum possible from the available resources. Some land is better suited for apples, while other land is best for oranges. Increasing Society does best when it directs the production of each resource toward its specialty. Refer to Table 2-4. C. More of the economy's resources become idle. Which of the following is the best description of an economy? d. its is not possible to increase production of any good. 0. 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. Step-by-step solution: Chapter: Problem: FS show all show all steps. Campus Labs is pleased to present an approach to achieving the balance between educating effectively and operating efficiently. The reason is that every resource is better suited to producing one good than another. c. it is possible to produce more of one good without producing less of another good. This preview shows page 2 - 5 out of 6 pages. When a firm or economy is operating efficiently, it is operating 48. Productive efficiency (or production efficiency) is a situation in which the economy or an economic system (e.g., a firm, a bank, a hospital, an industry, a country, etc.) (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. Reference: Ref 7-4 (Table) The table provides short run total Asked Feb 09, 2015. Which of the following about unemployment is true? The economy is producing on the production-possibilities curve. 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. E. It opts to produce more sugar. A)An economy with many unemployed workers and idle factories is not operating efficiently. With Academic Economics we can provide you with the data necessary to have more informed conversations on campus about the economics associated with educating students and operating programs. b. there is always a positive opportunity cost to increasing output. An economy is producing effiecntly if it is producing on its PPF False As long as the marginal benefit from a good is greater than its marginal cost , an economy is operating efficiently. An economy’s full employment output is the production level (RGDP) when all available resources are used efficiently. In an efficient market, the expected returns from any investment will be consistent with the risk of that investment over the long term, though there may be deviations from these expected returns in the short term.. C) an economy that is operating efficiently can have more of one good without giving up some of another good. Answer to If an economy is operating efficiently, to produce more of one good it must produce less of another.. 13 When an economy is operating efficiently the production of more of one good, 1 out of 1 people found this document helpful, When an economy is operating efficiently, the production of more of one good will result in the production of. Goods and services are being produced using the most resources. 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. The more specialized the resources, the more bowed out the production possibility curve. Penny is piano teacher and Dan is a tile layer. Which of the following is correct. 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