Under what conditions is it possible to increase production of one good without decreasing production of another good?
5. (Production Possibilities) Under what conditions is it possible to increase production of one good without decreasing production of another good? An economy can produce more of one good without sacrificing production of another good if it is operating inside its PPF.
What conditions must be satisfied if resources are used efficiently?
5. What conditions must be satisfied if resources are used efficiently? Resources are used efficiently when more of one good or service cannot be produced without producing less of some of another good or service that is valued more highly.
What is the fundamental fact of life from which all economic problems arise?
What is the fundamental fact of life from which all economic problems arise? The condition that results from limited resources combined with unlimited wants.
What is Harry’s marginal cost of tennis if he plays for 5 hours a week?
Harry’s marginal cost of tennis for 5 hours a week is 2.5 percentage points per hour.
When firms use new and better ways of producing all goods and services?
This preview shows page 4 – 5 out of 5 pages. Economic Growth When firms use new and better ways of producing all goods and services our standard of living increases , but we still face scarcity and opportunity cost. Economic Growth comes from technological change & capital accumulation.
What is production possibility curve explain with diagram?
The production possibility curve represents graphically alternative production possibilities open to an economy. The productive resources of the community can be used for the production of various alternative goods. But since they are scarce, a choice has to be made between the alternative goods that can be produced.
Why is a PPF curved?
The first is the fact that the budget constraint is a straight line. This is because its slope is given by the relative prices of the two goods. In contrast, the PPF has a curved shape because of the law of the diminishing returns. The second is the absence of specific numbers on the axes of the PPF.
When resources are allocated in such a way that it is possible to increase the production?
The allocation of the resources are distributed in the form of input and output by changing the economy. According to the given scenario, when the production of the one product are get increased by decreasing the another production of the goods and the services then, the resources are known as the efficient.
Which of the following is a reason why economic growth is important?
The reason why it’s so important is that it indicates the growth in economic output, whether measured by GDP (gross domestic product), GVA (gross value added), or any other measure. Assessing economic output also helps investors understand what drives an economy.
What two factors contribute to scarcity in the production of goods and services?
Limited natural resources and concentration of resources in a few hands are two main factors that define scarcity.
What are the 3 questions every society must answer and why?
In order to meet the needs of its people, every society must answer three basic economic questions: What should we produce? How should we produce it? For whom should we produce it?
What is one example of a traditional economy?
Societies with traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of them. They use barter instead of money. Most traditional economies operate in emerging markets and developing countries. They are often in Africa, Asia, Latin America, and the Middle East.
What are the 7 economic and social goals?
They are: economic freedom, efficiency, equity, security, full employment, price stability, and growth.
What are the 4 government objectives?
the principal objectives of government policies (maintaining full employment, ensuring price stability, achieving economic growth and having a balance of payments)
What are the goals of microeconomics?
The major goals of microeconomic policy are efficiency, equity and growth. Economic growth is often treated as a macroeconomic issue, but it is closely related to the micro-behaviour of the economy and the functioning of markets.
What are the social objectives?
A social objective is a statement that details a specific desired outcome of a project that is related to the interaction of the individuals, groups, and institutions within a society. Often our social objective is related to improving human wellbeing.