Econ Pre Test 3

The production possibilities frontier illustrates the maximum combinations of goods and services that can be produced.

The production possibilities frontier is the boundary between the attainable and unattainable combinations of goods and services.

When drawing a production possibilities frontier, the available factors of production and the state of technology, is held constant?

The table above gives four production possibilities for airplanes and cruise ships. In possibility All of the resources are devoted to the production of airplanes.

The table above gives four production possibilities for airplanes and cruise ships. In possibility O (zero) resources are devoted to the production of cruise ships?

Assume that an association of young workers has lobbied Congress to require that all workers retire once they reach the age of fifty. The impact this law would have on the nation's production possibilities frontier, would be a "shift inward."

In a production possibilities frontier diagram, the attainable production points are shown as the points inside and the points on the production possibilities frontier.

Production efficiency is represented by _all points on_ a production possibilities frontier.

If there is unemployment in an economy, then the economy is producing at a point inside the production possibilities frontier.

When drawing a production possibilities frontier, the available factors of production and the state of technology are held constant?