The production possibility frontier indicates the maximum production possibilities of two goods or services, assuming a fixed level of technology and only one choice between the two. The Production Possibilities Frontier Illustrates the Law of Increasing Opportunity Cost, Segment 3 ... Our final lesson focuses on the shape of the frontier line. 3. A point on the production possibilities frontier reflects an? International trade allows the nation to consume at a point outside its production possibilities frontier. C) a point outside the production possibilities frontier. D) a point inside the production possibilities frontier. The curvature of the PPF reflects increasing opportunity cost when substituting one type of 24, A point on the production possibilities frontier reflects an a attainable point with full employment of all resources b. attainable point without full employment of all resources -c. unattainable point with full employment of all resources d. unattainable point without full … Choices a.) Is more efficient than a point on the production possibilities frontier. The PPC or production possibility curve/ frontier is a presumptive depiction of the different conceivable combinations of two goods that can be produced within the given available resource. If there are idle or inefficiently allocated factors of production, the economy will operate inside the production possibilities curve. Points on the production possibilities curve thus satisfy two conditions: the economy is making full use of its factors of production, and it is making efficient use of its factors of production. b.) International trade shifts the production possibilities frontier outward for the goods that are exported and inward for the goods that are imported. B) the midpoint of the production possibilities frontier. However, a straight line doesn't best reflect how the real economy uses resources to produce goods. Any point inside the frontier reflects production where one or both outputs may be increased without decreasing the other output level. Lesson summary: the production possibilities frontier. Clearly, such points cannot be production efficient. International trade shifts the nation's production possibilities frontier inward. The Production Possibilities Frontier . A) ... Any point on the frontier (line/curve) is attainable, any point inside the frontier is attainable, ad any point outside the frontier is unattainable. PPCs for increasing, decreasing and constant opportunity cost. Up to this point we've graphed the PPF as a straight line. Skill: Analytical. AACSB: Reflective thinking . 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