Which of the following describes the relationship between price and quantity supplied?

Which of the following describes the relationship between price and quantity supplied?

Price and quantity supplied are directly related. As price goes down, the quantity supplied decreases; as the price goes up, quantity supplied increases. Price changes cause changes in quantity supplied represented by movements along the supply curve.

Which of the following is not a scarce resource?

Which of the following is NOT a scarce economic resource? Money. Money may be scarce, but it is not an economic resource because it is not directly used to produce.

Which of the following is not a scarce resource quizlet?

Stocks- Stocks are not a factor of production and therefore are not a scarce resource.

What concept allows us to consume beyond our ability to produce goods and services for ourselves?

Trade allows specialization based on comparative advantage and thus undoes this constraint, enabling each person to consume more than each person can produce. We all have a good intuitive understanding of the power of trade.

Does the economy above demonstrate the law?

b. Does the economy above demonstrate the law of increasing opportunity cost? This production possibilities curve is a straight line, which indicates that the opportunity cost along the line does not change. This economy does not demonstrate the law of increasing opportunity cost.

What are the 3 shifters of PPC?

Shifters of the Production Possibilities Curve (PPC)

• Change in the quantity or quality of resources.
• Change in technology.
• Trade.

What causes the PPC to shift inward?

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. 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.

What can shift a PPC curve?

Shifts in the production possibilities curve are caused by things that change the output of an economy, including advances in technology, changes in resources, more education or training (that’s what we call human capital) and changes in the labor force.

What causes PPC to shift outward?

Therefore to achieve any point beyond PPC, there is need for increase in the present supply of resources and technology which leads to an outward shift in PPC as overall production increases which results in economic growth. IV. An outward shift of a PPF means that an economy has increased its capacity to produce.

What developments caused the PPC for the United States to shift outward?

Resources of a country are likely to change over time. What developments caused the PPC for the United States to shift outward? Additional land brought an abundance of natural resources, immigration added huge numbers of workers, and new technology made land, labor, and capital more efficient.

What does the rightward shift in a PPC indicate?

The rightward shift of PPC indicates growth of resources or technological progress.

How does technology affect the production possibilities curve?

For the economy as a whole, an improvement in technology shifts the production possibilities frontier outward. Producers respond to the cheaper production process by increasing output, shifting the supply curve outwards.

Why is technology such an important factor of production?

However, as technology helps to increase the efficiency of the factors of production, it can also replace labor to reduce costs. For example, artificial intelligence and robotic machines are used in manufacturing boosting productivity, reducing costly errors from human beings, and ultimately reducing labor costs.

What does a country’s production possibilities curves depend on?

What does a country’s production possibilities curve depend on? It depends on available resources and technology. The maximum amount of the combination of goods that a country can produce given its available resources and technology. It represents the different choices or trade-offs that society faces.

How does technological progress affect the economy?

In economics, it is widely accepted that technology is the key driver of economic growth of countries, regions and cities. Technological progress allows for the more efficient production of more and better goods and services, which is what prosperity depends on.

What is technological progress affected by?

Technological progress refers to the discovery of new and improved methods of producing goods. Changes in technology lead to an increase in productivity of labor, capital. It can be used to increase value across a wide range of categories, such as financial, social, physical, intellectual, etc.

What are the five factors that influence technological progress?

There are most likely more than five factors that influence technological progress, but they might include funding for scientific and technological projects, the availability of scientists and engineers to lead technological studies, growing economic development, a business or science culture that supports …

Is technological progress a good thing?

Technological progress has eradicated diseases, helped double life expectancy, reduced starvation and extreme poverty, enabled flight and global communications, and made this generation the richest one in history. It has also made it easier than ever to cause destruction on a massive scale.

What are the main causes of technological progress?

The two main elements of technological progress are usually:

• Embodied technical progress: Improved technology which is attributed to investments in new equipment.
• Disembodied technical progress: Improved technology which results in output increases without investing in new equipment.

What are the signs of technological change?

Some ways technological change has impacted society include:

• Creates new products and processes.
• Increases efficiency and lowers cost.
• Helps economies evolve.
• Decreases self-reliance.
• Negatively affects the value of workers.

How is technology helping the economy?

Technology can save the time it takes to produce a good or deliver a service, contributing to the overall profits of a business. Technology can contribute to the efficiency of a business’s output rate, allowing for larger quantities of products to be moved or of services to be rendered.

What does higher productivity lead to?

An increase in physical productivity causes a corresponding increase in the value of labor, which raises wages. That is why employers look for education and on-the-job training. Knowledge and experience increase the human capital of the workers and make them more productive.

What are five factors that can hinder business productivity?

25 Factors That Affect Workers Productivity

• Temperature At Your Workplace.
• The Importance Of Great Lighting Sources.
• The Importance Of Hydration.
• Air Quality At Your Workplace.
• Proper Tools And Equipment.
• Managerial Communication.
• Office Layout And Design.
• Training And Education Of Your Employees.

What are the disadvantages of increasing productivity?

Here are some of the downsides to super productivity.

• Continued expectations. So, you put in 80 hours a week for 6 months and your nerves are shot and your children don’t recognize you any more.
• Family life suffers.
• No time for creativity.
• Death.
• Stop demanding extreme productivity of your employees.