part 1 (1 point) which of the following statements is true based on the production possibilities frontier…

part 1 (1 point) which of the following statements is true based on the production possibilities frontier (ppf) below? choose one: a. point a represents an inefficient level of production. b. the movement along the curve from point a to point b shows the opportunity cost of producing more cars. c. if an improved process for manufacturing cars is introduced, the entire ppf will shift outward. d. if society experiences a substantial increase in unemployment, the ppf shifts inward. part 2 (1 point) which of the following statements regarding the ppf shown is correct? choose one: a. the opportunity cost for an additional car remains constant from point a to point b. b. the opportunity cost for an additional car decreases from point a to point b. c. the opportunity cost for an additional car increases from point a to point b.

part 1 (1 point) which of the following statements is true based on the production possibilities frontier (ppf) below? choose one: a. point a represents an inefficient level of production. b. the movement along the curve from point a to point b shows the opportunity cost of producing more cars. c. if an improved process for manufacturing cars is introduced, the entire ppf will shift outward. d. if society experiences a substantial increase in unemployment, the ppf shifts inward. part 2 (1 point) which of the following statements regarding the ppf shown is correct? choose one: a. the opportunity cost for an additional car remains constant from point a to point b. b. the opportunity cost for an additional car decreases from point a to point b. c. the opportunity cost for an additional car increases from point a to point b.

Answer

Brief Explanations:

Part 1:

  • Points on the PPF represent efficient production. Movement along the curve shows opportunity - cost. An improvement in car - manufacturing process affects only car - production and not the entire PPF. Unemployment is an inefficiency and points inside the PPF represent inefficiency, not a shift of the PPF. The movement from point A to point B along the PPF shows the opportunity cost of producing more cars.

Part 2:

The PPF is concave to the origin, which implies increasing opportunity cost. As we move from point A to point B to produce more cars, the opportunity cost of an additional car increases.

Answer:

Part 1: B. The movement along the curve from point A to point B shows the opportunity cost of producing more cars.

Part 2: C. The opportunity cost for an additional car increases from point A to point B.