--%>
Assignment Help - homework help

Production at a point outside the production possibilities

For consumer goods (automobiles) and capital goods (forklifts), production possibilities table is depicted here:

 

1232_Production possibilities curve.png

What would production at a point outside the production possibilities curve denote? What should occur before the economy can achieve such a level of production?

E

Expert

Verified

Production outside the curve cannot take place (consumption outside the curve could take place through foreign trade). To generate beyond the current production possibilities curve this economy has to realize rise in its obtainable resources and/or technology.

   Related Questions in Finance Basics

  • Q : Explain Administration Program Costs

    Administration Program Costs: It is the indirect cost of a program, usually a share of the costs of the administrative units serving the whole department (example, the Director's Office, Personnel, Legal, Accounting, and Business Serv

    		•
  • Q : Durable goods industries and

    Normal 0 false false

    		•
  • Q : Why do financial managers compute the

    Why do financial managers compute the marginal tax rate?Financial managers utilize marginal tax rates to estimate the future after tax cash flows from investments.  Because they are interested in how much of the next dollar earned through n

    		•
  • Q : Explain working of accounts receivable

    Explain working of accounts receivable factoring? And describe benefits to the two parties involved and risks? Factoring is while one firm sells accounts receivable (AR) to another. The purchasing firm is termed as a factor. The factor earns

    		•
  • Q : Explain Appropriation Appropriation :

    Appropriation: The authorization for a particular agency to make expenditures or make obligations from a particular fund for a particular purpose. It is generally limited in amount and period of time during which the expenses is to be

    		•
  • Q : Influence of a quota Normal 0 false

    Normal 0 false false

  • Q : Question based on imposesing tax Given

    Given equations describe market for widgets                         Demand: P = 10 - Q Supply: P = Q - 4

    Q : Resolving ranking conflict Describe how

    Describe how to resolve a "ranking conflict" among the net present value and the internal rate of return. Why should the conflict be resolved as you described? Whenever there is a ranking conflict among net present value and internal rate of re

    		•
  • Q : What is Debt Financing Debt Financing :

    Debt Financing: Whenever a firm raises money for the working capital or capital expenses by selling bonds, bills, or notes to individual and or institutional investors. In return for lending money, the individuals or institutions become creditors and

    		•
  • Q : Describe relationship among a bonds

    Describe relationship among a bond's market price and its promised yield to maturity? Describe.A bond's market price based on its yield to maturity (YTM). While a bond has YTM greater than its coupon rate, it sells at discount from its face va

    		•