But, economy cannot operate outside PPF, known as ‘Unattainable Combina­tions’. attainable but inefficient. Production levels to the left of the PPF are: A. attainable but efficient. Economy can either operate on PPF or inside PPF, known as ‘Attainable Combinations’. attainable and efficient. The points that lie inside the PPC means that the actual production is falling short of its capabilities and there is a wastage or inefficient utilization of resources. Answers: unattainable. Points outside the PPF such as point G are unattainable. Figure 3.2 shows attainable and unattainable combinations. Points outside the PPF (i.e. C. unattainable and efficient. One of the central principles of economics is that everyone faces tradeoffs because resources are limited. Trade between countries allows nations to consume beyond their own PPF. Attainable and Unattainable Combinations • Because the PPF shows the limits to production, it separates attainable combinations from unattainable ones. ii. Question 11 Productive efficiency implies that Selected Answer: gains are impossible in one area without losses in another. We could increase total output by moving towards the PPF. A country would require an increase in factor resources, an increase in the productivity or an improvement in technology to reach this combination. The Production Possibilities Frontier . Economy cannot operate at any point outside PPF as it is unattainable with the available productive capacity. This article will describe how to derive and draw a PPF given information from a table. Using our analysis of Marginal Opportunity Cost (MC) from before, we see that the Slope (absolute value) of the PPF is the Marginal Cost of the good on the horizontal axis. These tradeoffs are present both in individual choice and in the production decisions of entire economies.. Production points inside the curve show an economy is not producing at its comparative advantage. Question 10 The point where the PPF intersects the horizontal axis is Selected Answer: attainable and efficient. The PPF separates attainable combinations from unattainable ones. Point C), while preferable, are unattainable given constraints in resources and time. The point of PPF that are attainable are called the attainable combinations. B. attainable but inefficient. B. jobless recoveries. Macroeconomics was developed to explain: A. the Great Depression. All choices along the curve shows production efficiency of both goods. C. the Industrial Revolution. D. unattainable and inefficient. A PPF would show this relationship between work and sleep (with the constraint of time in a day). The points inside and on the PPF are attainable for the firm. D. the Internet boom. 3. Attainable and Unattainable Combinations: Practice: Interpreting graphs of the production possibilities curve (PPC) Now, we can plot this table on a graph to obtain production possibility curve, which is shown in Figure-1: In Figure-1, the production possibility point’s g and h are attainable combinations, whereas c and e are unattainable combinations. PPCs for increasing, decreasing and constant opportunity cost. attainable and neither efficient nor inefficient. Combinations that lie beyond the PPF are unattainable at the moment. somheder For each point on the PPF, use the table below to indicate whether the point is attainable and efficient, attainable and intento n Production possibilities frontier a Good Y Good X Point Analysis Attainable and efficient : Attainable and inefficient : Attainable and efficient Attainable and inefficient Unattainable mo It means: i. This is the currently selected item. 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