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gogolik [260]
3 years ago
12

The production possibilities curve represents: a) The maximum amount of labor and capital available for production. b) Combinati

ons of goods and services among which consumers are indifferent. c) Maximum combinations of products available with fixed resources and technology. d) The maximum rate of growth of capital and labor in an economy.
Business
1 answer:
CaHeK987 [17]3 years ago
4 0

Answer:

c) Maximum combinations of products available with fixed resources and technology.

Explanation:

The production possibilities curve (PPC) is also known as the production possibilities frontier (PPF) and its a curve which illustrates the maximum (best) combinations of two products that can be produce in an economy if they both depend on these factors;

1. Technology is fixed.

2. Resources are fixed.

Hence, the production possibilities curve represents maximum combinations of products available with fixed resources and technology. This ultimately implies that the manufacturing or production of one item (product) is likely to rise or increase provided the production of the other item (product) falls or decreases.

<em>Additionally, the production possibilities curve influences the choice of production used by companies and as such it helps to make the best decision regarding the optimum product mix for a company. This simply means that, all points in a production possibilities curve is efficient and resources should be used efficiently or to the fullest. </em>

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Explanation:

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4 years ago
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Assume that a country has a closed economy that has only three goods/services. That is, there is no trade with other countries,
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<u>Explanation:</u>

Given

Consumption = (10 x 30) = 300

Investment = (100 x 2) = 200

Government Spending = (500 x 1) =500

13. Total GDP for this economy = Consumption + Investment+ Government spending

=(10 x 30) + (100 x 2) + (500 x 1)

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14. Consumption % on GDP

= Consumption/ Total GDP x 100

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5 0
3 years ago
The short-run aggregate supply curve implies that real output exceeds its long-run level when the price level is:
Annette [7]

Answer:

greater than the expected price level

Explanation:

The short run aggregate supply curve shows graphically that the real output is more than its long run level when the price level is more than expected price level. When there is great expectation about inflation it shifts the short run Aggregate Supply curve outwards or to the right. Price level would then rise in the long run but real output would stay the same or unchanged.

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