ew lab LJ none of the above 4. Which of the following statements is true? Produc
ID: 1149244 • Letter: E
Question
ew lab LJ none of the above 4. Which of the following statements is true? Productive inefficency implies that it is possible to produce more of one good and no less of another, but only if additional resources are made available Productive effciency implies that itis possible to produce more of one good and no less of another, even without additional resources. less of another of another, even without additional resources. Productive ineficiency implies that t is impossible to produce more of one good and no O Productive inefficiency implies that it is possible to produce more of one good and no less O none of the above 5. An advance in technology causes a rightward shift in the Production Possibilities Frontier (PPF) O a leftward shift in the PPF O the PPF to go from downward sloping to vertical. O the PPF to be a constant slope O a, b, and c 6. In the production possibilities framework, economic growth is depicted by the PPF a shift outward in the PPF O a shift inward in the PPF O the slope of the PPF becoming steeper O a movement from one point along the PPF to another point along the same PPF O none of the above 7. Jose has one evening in which to prepare for two exams and can employ two possible strategies: Score in Economics Score in Statistics StrateeyExplanation / Answer
Question 4
Productive efficiency implies that economy is producing such combination of goods and services that it is impossible to produce more of one good without reducing the quantity of other goods.
So, in contrast, when it is possible to produce more of one good and no less of another good, even without additional resources, production is said to be inefficient or there is production inefficiency.
The correct answer is the option (4).
Question 5
An advance in technology, in general, increases the production potential of an economy. This enables economy to produce more of all goods and services. This shifts the PPF of the economy to the right.
The correct answer is the option (1).
Question 6
Economic growth implies that economy is able to produce more goods and services relative to the previous year.
Production of more goods and services relative to previous time period implies rightward or outward shift of the PPF.
So, economic growth is depicted by PPF shifting outward.
The correct answer is the option (1).
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