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Are points outside the PPF attainable?
Because the PPF shows the limits to production, it separates attainable combinations from unattainable ones. The PPF separates attainable combinations from unattainable ones. Points outside the PPF such as point G are unattainable.
What does it mean when a point is unattainable?
Points that lie to the right of the production possibilities curve are said to be unattainable because they cannot be produced using currently available resources.
Is an unattainable point efficient?
Points on the interior of the PPC are inefficient, points on the PPC are efficient, and points beyond the PPC are unattainable.
Which point on the graph is not attainable?
A point on the curve is efficient and easily attainable by implementing all resources. A point that lies above or on the right side of the PPF is not attainable because the economy falls short of resources or technology to produce that level of output. The maximum capacity of the economy has already been exhausted.
What is attainable and unattainable combinations?
An attainable combination is the set or combination of two goods which is feasible by the economy to manufacture with the available resource allocation and technology. Unattainable combination is the combination of two goods which is not possible to be produced with allocated resource and available technology.
Why are certain combinations of resources unattainable?
C) A combination of goods is Unattainable if it cannot possibly be produced with the currently available resources and technology. When one person/country has a comparative advantage over another in the production of a good if the opportunity cost of producing a good is “lower” for one person or country over another.
Which point on the PPC is unattainable?
The PPC can demonstrate the fact that because of scarcity, we must make choices. A point outside the PPC (like point A) is unattainable. Given our assumptions, this economy cannot produce at point A. As we learned in our lesson on graphing, any point on a graph represents two numbers.
How can I get unattainable points in PPF account?
At point U, if technology or resources are used at full capacity, the economy could be at point B or C, meaning more would be produced. All points outside PPF are unattainable (e.g., point Z). Point Z could be attained only if technology or/and resources increase and the economy shifts its PPF to the right.
What are attainable and unattainable combinations?
Can non attainable combinations ever be converted into attainable?
Answer: The point inside the curve means that the resources and technology is not used fully thus giving lessmoutput and point on curve gives us maximum output. Therefore the output level of both attainable combination is different.
Is the PPF always bowed outward?
Opportunity Cost to every decision! The curve bows outwards because of the Law of Increasing Opportunity Cost, which states that the amount of a good which has to be sacrificed for each additional unit of another good is more than was sacrificed for the previous unit.