Question

35.Which of the following factors causes the Production Possibilities Frontier to con-tract?(A) An improvement in technology.(B)...

35.Which of the following factors causes the Production Possibilities Frontier to con-tract?(A) An improvement in technology.(B) A transition from a democracy to a socialist dictatorship.(C) An increase in the labour force.(D) Capital accumulation.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

Option B is correct

Any kind of dictatorship will not maximize the efficiency with which the resources are used. Improvement in technology and increase in the amount of capital and labour are required for outward shift of the production possibilities frontier. This is because a PPF is drawn for fixed resources and fixed technology. Contraction means inward shift of the production possibilities frontier which happens when there is a reduction in resources or degradation of technology.

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is the fundamental concept behind a production possibilities frontier (PPF)?
Which of the following is the fundamental concept behind a production possibilities frontier (PPF)?A. opportunity costB. the law of demandC. the law of supplyD. productive efficiencyE. technology
2.Which of the following would not shift the Production Possibilities Frontier outward? a Discovering new resources...
2.Which of the following would not shift the Production Possibilities Frontier outward? a Discovering new resources b Improving education and training of workers c Improving technology d Increasing the capital stock e Reducing unemployment and other resource misallocations 3.Productive efficiency tells us a that we should always produce outside our Production Possibilities Frontier. b the production choices available that fully use our resources. c which combinations of products are preferred by households. d the exact combination of products that a...
1. Consider the following Production Possibilities Frontier. (Chapter 1) Goods Possibilities _______________________________________________    A B C...
1. Consider the following Production Possibilities Frontier. (Chapter 1) Goods Possibilities _______________________________________________    A B C D E Capital Goods 5 4 3 2 0 Consumer Goods 0 5 9 12 14 _______________________________________________ e. List 4 ways the society might be able to expand (shift) its current PPF out into the unattainable areas? f. True/False: (1) There is zero unemployment when we are on the PPF? (2) Unemployment only exist when we operate under the PPF? Explain your answers!
If a country is operating on the production possibilities frontier curve, it must mean that which...
If a country is operating on the production possibilities frontier curve, it must mean that which of the following is true? A The country is allocatively and technically efficient B The country is technically efficient. C The country is economically efficient D The country is allocatively efficient by not necessarily technically efficient
Which two of the following essential principles does the production possibilities curve illustrate? a.) Factors of...
Which two of the following essential principles does the production possibilities curve illustrate? a.) Factors of production and price signals b.) Scarce resources and opportunity costs. c.) Market mechanisms and laissez faire d.) Economic growth and market failure.
The best definition for economic growth is a sustained expansion of production possibilities measured as the...
The best definition for economic growth is a sustained expansion of production possibilities measured as the increase in real GDP over a given period. a sustained expansion of production possibilities measured as the increase in nominal GDP over a given period. a sustained expansion of consumption goods over a given period. a sustained expansion of production goods over a given period. If a nation's population grows, then growth in real GDP per person will be less than the growth of...
1) which of the following would an economist classify as capital? A) a $100 traveler’s check...
1) which of the following would an economist classify as capital? A) a $100 traveler’s check B) a new deposit of natural gas C) a government savings bond D) a police car 2) the discovery of new natural resources will cause A) the production possibilities curve to shift up and to the right B) the curve to shift back and to the left C) an upward movement along the curve D) the economy to move closer to the production possibilities...
Factors which enhance calcium absorption from the GI tract include: a. vitamin D b. lactose c....
Factors which enhance calcium absorption from the GI tract include: a. vitamin D b. lactose c. protein d. a and b e. b and c
Countries A and B have two factors of​ production, capital and​ labor, with which they produce...
Countries A and B have two factors of​ production, capital and​ labor, with which they produce two​ goods, X and Y. Technology is the same in the two countries. X is​ capital-intensive; A is​ capital-abundant. Analyze the effects on the terms of trade and the welfare of the two countries of the​ following: Event Terms of trade effect ​A's welfare ​B's welfare a. An increase in​ A's capital stock. ▼ A's improve A's worsen ▼ Increases Decreases Ambiguous ▼ Increases...
There is a production possibilities frontier that shows the combinations of goods x and y that...
There is a production possibilities frontier that shows the combinations of goods x and y that can be produced in the economy. the point where the ppf touches the good x-axis is at 40 units of good x and the point where the ppf touches the good y-axis is at 60 units As a result of an increase in resources that can be used for the production of both goods, the ppf: a. shifts leftward, in the point at which...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT