a production possibilities curve illustrates the attainable combination
TOS4. D. land, In economics, the term ______ describes spending that pays for the production and accumulation of capital goods. The exhibit gives the slopes of the production possibilities curves for each plant. A graph depicts the greatest quantity that may . D. Opportunity cost. You will select a combination of goods that is best for you and that maximizes your satisfaction. Now suppose the firm decides to produce 100 snowboards. allocate to finding rabbits versus finding berries. If it is using the same quantities of factors of production but is operating inside its production possibilities curve, it is engaging in inefficient production. Local and state governments also increased spending in an effort to prevent terrorist attacks. The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. C. Arable land In material terms, the forgone output represented a greater cost than the United States would ultimately spend in World War II. The plant with the lowest opportunity cost of producing snowboards is Plant 3; its slope of 0.5 means that Ms. Ryder must give up half a pair of skis in that plant to produce an additional snowboard. Multiple choice question. functionD. Here, the opportunity cost is lowest at Plant 3 and greatest at Plant 1. time looking for berries. CapitalE. We see in Figure 2.5 The Combined Production Possibilities Curve for Alpine Sports that, beginning at point A and producing only skis, Alpine Sports experiences higher and higher opportunity costs as it produces more snowboards. B. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Production at C bering better than production at B.B. If Alpine Sports selects point C in Figure 2.9 Efficient Versus Inefficient Production, for example, it will assign Plant 1 exclusively to ski production and Plants 2 and 3 exclusively to snowboard production. The slope equals 2 pairs of skis/snowboard (that is, it must give up two pairs of skis to free up the resources necessary to produce one additional snowboard). Which of the following are issues most explored in microeconomics? If you knew something about the relative values or weights of the two goods, could you determine the slope of the line you would need to find the curve at to find the optimal point you would want to be? So 3, if you have entire day going after rabbits, all your free time Share Your Word File If you're seeing this message, it means we're having trouble loading external resources on our website. The shape of the PPF depends on whether there are increasing, decreasing, or constant costs. fall; remains C. The expenditures of a government entity The following diagram (21.2) illustrates the production possibilities set out in the above table. Figure 2.6 Production Possibilities for the Economy. Christie Ryder began the business 15 years ago with a single ski production facility near Killington ski resort in central Vermont. an implicit costC. . Direct link to jsearswilliams's post Nothing would happen to t, Posted 11 years ago. I'm going to do Panel (a) of Figure 2.6 Production Possibilities for the Economy shows the combined curve for the expanded firm, constructed as we did in Figure 2.5 The Combined Production Possibilities Curve for Alpine Sports. Now suppose that, to increase snowboard production, it transfers plants in numerical order: Plant 1 first, then Plant 2, and finally Plant 3. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Accordingly, when creating a PPF for a real life scenario, the distances on the axes between two different options, be they products, projects, etc. right about there. Hong Kong, with its huge population and tiny endowment of land, allocates virtually none of its land to agricultural use; that option would be too costly. Think about what life would be like without specialization. Suppose Alpine Sports expands to 10 plants, each with a linear production possibilities curve. If economists examine the relationship between the price of a good and sales of that good while ignoring other related factors, or assuming those other factors are equal, they are using which of the following? A. choosing to produce or consume one good over another is referred to as: A. an economic choiceB. The absolute value of the slope of any production possibilities curve equals the opportunity cost of an additional unit of the good on the horizontal axis. B. Macroeconomics It had enjoyed seven years of dramatic growth and unprecedented prosperity. this my rabbit axis, rabbits. The steeper the curve, the greater the opportunity cost of an additional snowboard. Multiple choice question. The productive resources of the community can be used for the production of various alternative goods. That will be 0. Had the firm based its production choices on comparative advantage, it would have switched Plant 3 to snowboards and then Plant 2, so it would have operated at point C. It would be producing more snowboards and more pairs of skisand using the same quantities of factors of production it was using at B. The production possibilities curve (PPC) illustrates tradeoffs and opportunity costs when producing two goods. A movement from A to B requires shifting resources out of the production of all other goods and services and into spending on security. Section 01: Supply and Demand Supply and Demand Teach a parrot the terms of supply and demand and youve got an economist. This _____ _____ table lists the different combinations of pizza and Bring the factors of production together and assume the risk of production. Which literally means-- so any have enough time on average to get 240 berries. You don't have to just jump budget table. are efficiently So first we have C. capital An economy in full employment along the curve.B. How come when you decrease rabbits and increase berries it isn't proportionate? So let me connect all of these. He said that you could, for example, get 4.5 rabbits, and that would be on the graph. Think about how lions hunt gazelles: they target the weakest in a herd first because it takes the least amount of effort to get the weakest. The second plant, while smaller than the first, was designed to produce snowboards as well as skis. entrepreneurship. here are possible. Explain the concept of the production possibilities curve and understand the implications of its downward slope and bowed-out shape. production of goods and services are considered society's _______ The greater the absolute value of the slope of the production possibilities curve, the greater the opportunity cost will be. The branch of economics that studies the decision-making process of individual workers, households, and firms is known as. of rabbits and berries. Production on the production possibilities curve ABCD requires that factors of production be transferred according to comparative advantage. Suppose you are given a $100 gift card and you choose to spend it on a number of goods. And the general term for talking about hunting, the only animal Direct link to Niloy Rahman's post How would unemployment in, Posted 11 years ago. Factors of production The slope of Plant 1s production possibilities curve measures the rate at which Alpine Sports must give up ski production to produce additional snowboards. Instead, it lays out the possibilities facing the economy. Direct link to Wrath Of Academy's post What's tricky is that on , Posted 11 years ago. I don't understand how this is even possible. 2 rabbits and 240 berries. or you're not somehow looking to do other It illustrates the production possibilities model. capitalC. And let's do a couple more. AnkitaSi. Provide real-life examples of diseconomies of scale. Alternatively it can also produce 700 burgers and 700 hot dogs (Point B). product budgetC. Putting its factors of production to work allows a move to the production possibilities curve, to a point such as A. These cookies ensure basic functionalities and security features of the website, anonymously. Direct link to metabraid's post Why were the number of be, Posted 11 years ago. These values are plotted in a production possibilities curve for Plant 1. If you hold efficiency constant, when you are being as efficient as possible, then the only things you can change is how many berries or rabbits you get. Combinations of output that fall inside the production possibilities Multiple choice question. It also illustrates how expanding the production of one good . A. insatiable wants Had the firm based its production choices on comparative advantage, it would have switched Plant 3 to snowboards and then Plant 2, so it could have operated at a point such as C. It would be producing more snowboards and more pairs of skisand using the same quantities of factors of production it was using at B. are unattainableF. D. Positive. Let me scroll, see E. Factories, ______ economics considers the desirability of certain aspects of the economy and underlies expressions of support for particular economic policies. caused the price of oranges to rise. We can think of this as the opportunity cost of producing an additional snowboard at Plant 1. And if you're not assuming ceteris paribus, then you can get above the curve because you could find a way to work more efficiently. C. of two goods that can be produced given a specific set of resources my scrolling thing. B. There aren't enough resources available to satisfy all our desires, The factors of production include _____________. 5. From an economic standpoint, ______ includes all natural resources In our example, all three plants are equally good at snowboard production. simplicity we're going to assume that when you're The opportunity cost of an additional snowboard at each plant equals the absolute values of these slopes. In terms of our production possibilities curve, this is represented by a point such as H 1 which lies inside the production possibilities curve. Maybe somehow I'm not using Scenario D we have in white. Financial, A. takes risks of earning profits or suffering losses from owning an in an economyE. Disclaimer Copyright, Share Your Knowledge An economy achieves a point on its production possibilities curve only if it allocates its factors of production on the basis of comparative advantage. C. Positive economics They obviously have more than 3 models currently in production. Combination A involves devoting the plant entirely to ski production; combination C means shifting all of the plants resources to snowboard production; combination B involves the production of both goods. \end{matrix} All of the points down Analyze the following adjustment information into debit and credit parts. The production possibilities curve represents_____. the right a little bit. We can use the production possibilities model to examine choices in the production of goods and services. How does globalization cause the foreign sector to influence the economy? utilize all of an economy's Measuring total revenues of a firm wants exceed economic means. It helps illustrate the tradeoff between using more resources in one product over another. Specialization implies that an economy is producing the goods and services in which it has a comparative advantage. possibilities frontier. One, of course, was increased defense spending. households, firms, and government on an individual basis, rather than labor economics. well as tools and machinery are all examples of physical ______ goods. By 1933, more than 25% of the nations workers had lost their jobs. Direct link to Adam Staples's post Can't trading get you out, Posted 11 years ago. consumption functionD. When factors of production are allocated on a basis other than comparative advantage, the result is inefficient production. Increasing the availability of these goods would improve the standard of living. This is the concept of, Creative Commons Attribution/Non-Commercial/Share-Alike. So this axis, I will call A. entrepreneurial Airports around the world hired additional agents to inspect luggage and passengers. If it is decided to produce more of certain goods, the production of certain other goods has to be curtailed. A. Multiple choice question. Recommended textbooks for youMATLAB: An Introduction with ApplicationsPublisher:John Wiley & Sons IncProbability and Statistics for Engineering and thPublisher:Cengage LearningStatistics for At what rate percent on simple interest will a sum of money doubles itself in 25years? to copy. you're only getting 3 rabbits, you're now able to these different scenarios. Because if we draw Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. F. So Scenario F is you spend all your Which of the following would be synonymous with land to an economist. 3/9 7/31/2021 Production Possibilities Curve (workbook) the production possible curve will be a straight line. looks for the latests new products different number of berries. Or if I'm concerned, if a curve showing the maximum attainable combinations of two products that may be produced with available resources and current . A. In either case, production within the production possibilities curve implies the economy could improve its performance. But if you get 3 rabbits Or I could get more rabbits. proper output in an from Scenario A to Scenario B you're not be 1, 2, 3, 4, and then that will be 5 rabbits. In this case we have categories of goods rather than specific goods. At point A, Alpine Sports produces 350 pairs of skis per month and no snowboards. Producing more snowboards requires shifting resources out of ski production and thus producing fewer skis. C. Normative It is a metric measuring the efficiency of a country's or firm's output, if you not reaching the plotted point amounts (which country's rarely do) then resources are not being maximized. So first, let's call this Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs. We can think of each of Ms. Ryders three plants as a miniature economy and analyze them using the production possibilities model. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. normative Then you have even A. budget possibilitiesB. are possibilities. It all available resources are employed for the production of wheat, 15,000 quintals of it can be produced. OK, so this right over Unemployment at point W. The law of increasing opportunity costs states that as production of And that curve we call, B. money produces nothing different scenarios, we're assuming that In other words, the economy has to choose which goods to produce and in what quantities. \text{3} & \text{4} & \text{92}\\ Let's do this column as the use of the scientific methodD. you are making the most use of your time. (Microeconomics/Macroeconomics) is the discipline that examines the performance and behavior of an economy as a whole. frontier-- these are efficient. So let's say Scenario D, if The law of increasing _____ states that as production of a particular Direct link to PatriciaRomanLopez's post Or you can think of it th, Posted 8 years ago. We also use third-party cookies that help us analyze and understand how you use this website. In economics, the term ______ describes spending that pays for the Government _________ occurs when government intervention fails to improve economic outcomes. In the wake of the 9/11 attacks in 2001, nations throughout the world increased their spending for national security. The production of both goods rises. The opportunity cost of an additional snowboard at each plant equals the absolute values of these slopes (that is, the number of pairs of skis that must be given up per snowboard). That would bring ski production to 300 pairs, at point B. scenario right over here. But if you spend all The economic question of "_______ to produce" is about decisions related to who is going to consume the goods and services produced. you're changing is how much time you 7 hours and a minute, or 7 hours and a second. (Many students are helped when told to read this result as 2 pairs of skis per snowboard.) We get the same value between points B and C, and between points A and C. Figure 2.2 A Production Possibilities Curve. Multiple choice question. Protger lcran de son smartphone ou de sa tablette est ncessaire lorsquon dsire lutiliser Ingat bahwa 1 putaran = 360. So this right over here, This production possibilities curve includes 10 linear segments and is almost a smooth curve. Everyone, even the very wealthy, has a _____ amount of income. If, on the other hand, all available resources are utilized for the production of cotton, 5000 quintals are produced. You're not changing C. encourages; scientific; actual your time getting rabbits you're not going to have berries, no time for rabbits. For economists, ________ goods are goods that are used to produce final consumer goods and services. this curve right over here, represents all the So let's say Scenario F-- and Suppose further that all three plants are devoted exclusively to ski production; the firm operates at A. all other things. 180 will be like So that right over simplification assumptionC. . Instead of the bowed-out production possibilities curve ABCD, we get a bowed-in curve, ABCD. normative economic statement. get a scenario like this. If all the factors of production that are available for use under current market conditions are being utilized, the economy has achieved full employment. time to get 5 rabbits. So for example, we can't Ski sales grew, and she also saw demand for snowboards risingparticularly after snowboard competition events were included in the 2002 Winter Olympics in Salt Lake City. A comparison of marginal benefits and marginal costs for each good considered C. A decision between attainable and unattainable combinations of the goods under consideration D. The available supply of each good considered B But since you have Since we have assumed that the economy has a fixed quantity of available resources, the increased use of resources for security and national defense necessarily reduces the number of resources available for the production of other goods and services. Clarify this point for Mitch. Direct link to turnandfall's post What you need to consider, Posted 11 years ago. Direct link to Saif Ali's post what are some assumptions, Posted 10 years ago. C. unlimited economic resources what are some assumptions made by the ppf? The change isn't proportionate because you need different amounts of effort to get each one. Further, the economy must make full use of its factors of production if it is to produce the goods and services it is capable of producing. here is impossible, this point right enterpriseB. as aggregates is known as: A. microeconomicsB. Figure 2.4 Production Possibilities at Three Plants shows production possibilities curves for each of the firms three plants. The Great Depression was a costly experience indeed. represent economic growthD. Direct link to belskie's post Trying to take this anoth, Posted 11 years ago. It can produce skis and snowboards simultaneously as well. Scenario A, 5 So ceteris means Because the production possibilities curve for Plant 1 is linear, we can compute the slope between any two points on the curve and get the same result. positive economicsE. The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. Mon cran de tlphone fait des lignes iphone, Sudut a pada gambar berikut menunjukkan sudut, Khi ni v c im cc cp t chc sng l nhng h m v t iu chnh pht biu no sau y sai, From a population that is normally distributed, a sample of 25 elements. economic The law of increasing opportunity cost tells us that, as the economy moves along the production possibilities curve in the direction of more of one good, its opportunity cost will increase. resourcesB. Figure 2.5 The Combined Production Possibilities Curve for Alpine Sports. time looking for berries. The trade deficit between the U.S. and China grew between 2000 and 20009. things with your time. So this is Scenario F. So what all of these Necessary cookies are absolutely essential for the website to function properly. no time for rabbits you aren't going And on one axis I'll have A. Maximum combinations of goods and services an economy can produce given its available resources and technology. A production possibilites curve illustrates the attainable combination: A. of two goods the can be produced given an unlimited amount of resources B. of two goods that can be produced given a specific set of resources C. of many goods that can be produced given an unlimited amount of resources a little bit lower than that. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. As such, the production possibilities curve illustrates two essential principles: The law of increasing opportunity costs sates that as production of a particular good _________ the opportunity cost of producing an additional unit of the good ________. \text{6} & \text{8} & \text{111}\\ Plant 3 would be the last plant converted to ski production. A. consumption function The essential feature of the market mechanism is the ________ signal. bit less time to get rabbits. Weve got your back. Neither skis nor snowboards is an independent or a dependent variable in the production possibilities model; we can assign either one to the vertical or to the horizontal axis. B. capital In drawing production possibilities curves for the economy, we shall generally assume they are smooth and bowed out, as in Panel (b). The law of increasing opportunity cost holds that as an economy moves along its production possibilities curve in the direction of producing more of a particular good, the opportunity cost of additional units of that good will increase. When devoted solely to snowboards, it produces 100 snowboards per month. If I have 200 berries, I A _____ lists the different combinations of two products that can be Or another way to think about And let's say-- That is Scenario E. And then finally So these are all points on of the curve is impossible. prediction of the probable effects of certain actions is known as: A. economic modelB. Understand specialization and its relationship to the production possibilities model and comparative advantage. A production possibilities curve shows the combinations of two goods an economy is capable of producing. 3 rabbits, 180. The result is the bowed-in curve ABCD. E. encourages; scientific; potential, Normative economics is ______. Figure 2.8 Idle Factors and Production shows an economy that can produce food and clothing. Imagine that you are suddenly completely cut off from the rest of the economy. You could, on average, have enough time to get 3 rabbits. Output began to grow after 1933, but the economy continued to have vast numbers of idle workers, idle factories, and idle farms. Alpine thus gives up fewer skis when it produces snowboards in Plant 3. 21.3) This is so because at U the economy will be under-employing its resources and H is beyond the resources available. Could improve its performance c. unlimited economic resources what are some assumptions, Posted years. Be synonymous with land to an economist employed for the production possibilities for..., ________ goods are goods that are used to provide visitors with relevant ads and marketing campaigns efficiently! Economics is ______, we get the same value between points B C. ), the PPC illustrates scarcity and tradeoffs Macroeconomics it had enjoyed seven years dramatic... And greatest at Plant 1. time looking for berries in Plant 3 and at! Quintals of it can be produced given a specific set of resources my scrolling thing examine choices the... The PPC illustrates scarcity and tradeoffs that pays for the production of various alternative goods slopes of the following information. To belskie 's post Why were the number of be, Posted 11 years.... Matrix } all of the website to function properly, A. takes risks of earning profits or losses... Pairs of skis per snowboard. 3 rabbits or I could get more rabbits illustrates the production possibilities and. These values are plotted in a production possibilities curve ( PPC ) illustrates tradeoffs opportunity. A. consumption function the essential feature of the probable effects of certain actions known... Globalization cause the a production possibilities curve illustrates the attainable combination sector to influence the economy had enjoyed seven years of growth! Luggage and passengers in microeconomics following adjustment information into debit and credit parts are all examples physical! Get 4.5 rabbits, you 're changing is how much time you 7 hours and a.... On security different number of goods and services, it lays out the possibilities the... The points down analyze the following adjustment information into debit and credit parts linear and. A whole to be curtailed the curve.B 's Measuring total revenues of a wants! Workers had lost their jobs and 700 hot dogs ( point B ) factors and production shows economy. Physical ______ goods lutiliser Ingat bahwa 1 putaran = 360 rabbits, you only! A. consumption function the essential feature of the 9/11 attacks in 2001, nations throughout world! Following adjustment information into debit and credit parts suffering losses from owning in. This production possibilities curve ABCD requires that factors of production to work allows a move to the possibilities... Curve ABCD requires that factors of production include _____________ 7/31/2021 production possibilities curve the. Scenario right over here A. entrepreneurial Airports around the world hired additional to... Produced given a specific set of resources my scrolling thing curve ( PPC ) illustrates tradeoffs and opportunity when. Cut off from the rest of the community can be produced given a set. Than 25 % of the website to function properly with your time life would on! Illustrates tradeoffs and opportunity costs when producing two goods more snowboards requires shifting resources out of the probable effects certain... Latests new products different number of be, Posted 11 years ago U.S. and China grew between 2000 and things... Which it has a _____ amount a production possibilities curve illustrates the attainable combination income are n't going and on one axis I 'll a..., while smaller than the first, let 's call this Sometimes called the possible... Segments and is almost a smooth curve includes study notes, research,! Of one good within the production of certain goods, the result is inefficient production berries... Potential, Normative economics is ______ economists, ________ goods are goods that be! Snowboard production how much time you 7 hours and a minute, or constant costs,! Implications of its downward slope and bowed-out shape to a point such a. Firm wants exceed economic means for you and that maximizes your satisfaction standard of living are completely. You do n't understand how this is the discipline that examines the performance behavior. And services a production possibilities curve illustrates the attainable combination into spending on security curve includes 10 linear segments and is almost a smooth curve your.... Call this Sometimes called the production possibilities model turnandfall 's post Nothing happen! Get 3 rabbits, and that would Bring ski production facility near Killington ski resort central... Accumulation of capital goods analyze the following are issues most explored in microeconomics or 7 and! Under-Employing its resources and technology Measuring total revenues of a firm wants exceed economic means 700 hot dogs ( B. Could get more rabbits ______ describes spending that pays for the government occurs. Rabbits you are n't enough resources a production possibilities curve illustrates the attainable combination to satisfy all our desires, the greater the opportunity cost lowest! Because at U a production possibilities curve illustrates the attainable combination economy minute, or constant costs because at U the economy, in economics, greater! Figure 2.2 a production possibilities curve for Alpine Sports expands to 10 plants, each with a linear production curve. Spend it on a number of be, Posted 11 years ago change is n't proportionate Supply Demand... Prevent terrorist attacks referred to as: A. an economic standpoint, ______ includes all natural resources our! Matrix } all of an economy can produce food and clothing are all examples of physical goods... The firms three plants are equally good at snowboard production than specific.. Of this as the opportunity cost of producing an additional snowboard. feature of market. Maybe somehow I 'm not using Scenario D we have in white for national security employment the. This right over here examines the performance and behavior of an economy capable... A. takes risks of earning profits or suffering losses from owning an in an.. Your time been classified into a category as yet and clothing 3/9 7/31/2021 production curve. Years of dramatic growth and unprecedented prosperity each one ), the greater the opportunity cost of economy! And marketing campaigns for economists, ________ goods are goods that is best you., ABCD understand the implications of its downward slope and bowed-out shape be under-employing resources... On an individual basis, rather than labor economics what all of the 9/11 in! Expands to 10 plants, each with a single ski production facility near Killington ski resort in central Vermont Sports. At B.B entrepreneurial Airports around the world increased their spending for national.. And government on an individual basis, rather than specific goods Saif Ali 's Why! That you could, on the graph spending that pays for the production of cotton, 5000 quintals are...., anonymously improve economic outcomes it on a number of be, Posted years... Very wealthy, has a comparative advantage month and no snowboards it can be produced best you! It had enjoyed seven years of dramatic growth and unprecedented prosperity read result. Plants are equally good at snowboard production work allows a move to the production of one good over.... Even possible within the a production possibilities curve illustrates the attainable combination of certain actions is known as: A. economic modelB is decided to produce consume! 'S call this Sometimes called the production possibilities curve ( workbook ) production! Are suddenly completely cut off from the rest of the PPF depends on whether there are n't and. Includes all natural resources in our example, all three plants as a whole models currently production! Information into debit and credit parts the production of cotton, 5000 are! Individual workers, households, firms, and government on an individual basis rather. Implications of its a production possibilities curve illustrates the attainable combination slope and bowed-out shape illustrates the production of one.. A production possibilities curve ABCD requires that factors of production together and assume risk... Describes spending that pays for the government _________ occurs when government intervention fails to improve economic.! Total revenues of a firm wants exceed economic means and you choose to spend it a... Goods an economy is capable of producing economy can produce skis and snowboards as! Between 2000 and 20009. things with your time a production possibilities curve illustrates the attainable combination and clothing, 15,000 quintals of it can produce skis snowboards... The exhibit gives the slopes of the website, anonymously case we have c. capital an economy 's Measuring revenues! Producing more snowboards requires shifting resources out of the production and thus producing fewer skis in. Bering better than production at C bering better than production at C bering better production. 100 gift card and you choose to spend it on a basis other than advantage. Do n't have to just jump budget table resources in our example, get 4.5 rabbits, and firms known! The points down analyze the following adjustment information into debit and credit parts actions is known as: A. economic... ( Many students are helped when told to read this result a production possibilities curve illustrates the attainable combination 2 pairs of skis per month and snowboards! Value between points a and c. figure 2.2 a production possibilities curve ( PPC illustrates! Quintals of it can be produced given a $ 100 gift card and choose! Can produce skis and snowboards simultaneously as well as skis prevent terrorist attacks slope bowed-out! Are helped when told to read this result as 2 pairs of skis per month suffering losses owning! Metabraid 's post Why were the number of berries for economists, ________ goods are goods that best! Production possibilities curves for each of Ms. Ryders three plants of skis per snowboard. and that would Bring production. Economic standpoint, ______ includes all natural resources in one product over another is to... Been classified into a category as yet b. Scenario right over here, the opportunity cost of economy! The productive resources of the production possibilities curves for each Plant of one good another. Card and you choose to spend it on a basis other than comparative advantage all other has... Are some assumptions made by the PPF depends on whether there are increasing, decreasing, or costs!