when an economy is operating efficiently

QUESTION 58 Which of the following is true when an economy is producing efficiently? The economy is producing on the production-possibilities curve. It equals the highest level of production an economy can sustain for the long-run. A production possibilities curve illustrates how efficient an economy is by indicating the possibly opportunities in the economy. An economy’s full employment output is the production level (RGDP) when all available resources are used efficiently. Plants have to be regularly maintained, commissioned, optimized or quickly converted to the production of alternative products, even though technicians cannot be personally on site. Productive efficiency (or production efficiency) is a situation in which the economy or an economic system (e.g., a firm, a bank, a hospital, an industry, a country, etc.) 0. c. an economy that is operating efficiently can have more of one good without giving up some of another good d. scarcity can be eliminated. It is important to maximize resources because goods are being produced most efficiently. C) Experiencing The opportunity cost is zero, because the economy is operating at full capacity b. Increasing In this video, Sal explains how the production possibilities curve model can be used to illustrate changes in a country's actual and potential level of output. d. it is not possible to produce more of any good at any cost. *Any point on a country’s PPF represents a combination of two goods that an economy can produce using all available resources and technology. C) The curve needs to shift inward. If an economy is producing a level of output that is on its production possibilities curve, the economy has no idle resources and is using resources efficiently. Operating efficiently, it is producing the highest possible amounts of goods that it can produce. ____ When an economy is operating efficiently: a. domestic production exceeds the value of foreign output. If Kenneth is willing to sell his old table saw for $50 and manages to get $80 for it, he receives producer's surplus of: Xavier hires Yolanda to construct a rock garden in front of Xavier's house. Report abuse. Definition FALSE. Operational efficiency is primarily a metric that measures the efficiency of profit earned as a function of operational costs. when an economy is operating efficiently: a. it's operating inside its PPF b. it is producing the maximum output with the available resources and technology c. it can produce more of a good without producing less of another d. all of C-it is possible to produce more of one good without producing less of the other. Productive efficiency, on the other hand, is when an economy is using all of its resources efficiently, producing the greatest output for the smallest input. when it is producing less than the maximum output with the available resource and technology. Identifies the amount of consumer goods produced per year if all the economy's resources are used efficiently to produce consumer goods. It increases the price of cookies. D) scarcity can be eliminated. Get step-by-step explanations, verified by experts. To capitalize on its favorable climate for growing these fruits, the country decides to build some islands near … c. on the production possibility curve. C)Idle factories represent unemployed There Are Unused Resources Or Inefficiencies In The Economy. When an economy is in a recession, it is operating inside the PPC. If an economy is operating at a point that is inside of its production possibilities frontier, then it can be assumed that its resources are: A) efficiently allocated. Economic efficiency occurs when the cost of producing a given output is as low as possible.Technological efficiency is an engineering matter. When an economy is operating efficiently the production of more of one good from ECO ECO2013 at Florida State University When a firm or economy is operating efficiently, it is operating on its production possibilities frontier If an economy is producing inefficiently a) it is possible to increase production of all goods simultaneously b) it is possible to increase production of one good at the expense of another If an economy is operating on its production possibilities curve, it is: efficient and fully employed. When an economy is operating efficiently the production of more of one good from ECO ECO2013 at Florida State University If an economy is operating inefficiently, then a. the economy can increase production of consumption goods without reducing capital goods. Economic efficiency depends on the prices of the factors of production. QUESTIONS The economy is operating efficiently when O a technological change is occurring rapidly. If the economy is operating at full employment and using resources efficiently, then an increase in spending for homeland security this year will: October 7, 2018 / in Brainy Term Papers / by Brainy. b. there is no way to produce more of one good without producing less of the other. Question: 14. Which of the following about unemployment is true? If an economy is producing efficiently, then it is possible for that economy to produce more of one good without producing less of the other. When a dynamic labor market is operating efficiently, mostly cyclical unemployment will be present. Your Answer: TIP: If it's not your answer to this question, please click "Leave a Comment" button under the question to communicate with the question owner. QUESTION 58 Which of the following is true when an economy is producing efficiently? An economy is producing efficiently only if it is operating a. outside the production possibility curve. resources are limited (scarce) and efficiency implies that all are already in use. Goods and services are being produced using the most resources. Use the production. National Welfare Fund (Russia): One of two parts of the Russian sovereign wealth fund, the other being the Reserve Fund. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. When an economy producing two goods is operating efficiently and at full employment, increasing the production of one good will result in a decrease in the amount of the other good that can be produced A. B) Getting the most goods and services from the available resources. practicing self-sufficiency has the advantage that: producing according to comparative advantage: when two parties voluntarily engage in trade: Millhouse is willing to pay $100 for the first issue of "Radioactive Man." Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. When improving operational efficiency, the output to input ratio improves. Answer to If an economy is operating efficiently, to produce more of one good it must produce less of another.. When An Economy Is Operating Inside Its Production Possibilities Frontier, We Know That A. d. at the x- or y-axis intercepts of the production possibility curve. The economy is getting the fewest goods and … A)An economy with many unemployed workers and idle factories is not operating efficiently. technological improvement can only improve the production of a single good. •If the economy is operating on a point ON the curve, it is operating efficiently because it is a producing a mix of computers and bread that is the maximum possible from the available resources. When it is at full employment, it operates on the PPC. b. scarcity has been eliminated. the rock garden increases the value of Xavier's house, and also increases the value of Xavier's neighbor Zelda's house. d. its is not possible to increase production of any good. True/False: Inefficiency occurs when an economy is operating outside its production possibilities curve. But … Penny is piano teacher and Dan is a tile layer. QUESTION 6 When an economy is operating efficiently, which is true? Available resources are efficiently and fully employed b. resources are limited (scarce) and efficiency implies that all are already in use. A Learn vocabulary, terms, and more with flashcards, games, and other study tools. E. counts illegal activities in the underground economy. Society does best when it directs the production of each resource toward its specialty. When a firm or economy is operating efficiently, it is operating on its production possibilities frontier. An economy is producing efficiently only if it is operating a. outside the production possibility curve. If an economy is operating inside its production possibilities frontier: A) it is producing efficiently. When an economy is operating at a point on its production possibilities frontier, then a. consumers are content with the mix of goods and services that is being produced. d. it is producing the maximum output with … C) an economy that is operating efficiently can have more of one good without giving up some of another good. This economy can produce more cookies if: That when resources are currently being used inefficiently, it is possible to b. there is always a positive opportunity cost to increasing output. The production possibilities curve illustrates: A. d. the economy is producing inside of its PPC. Which of the following would allow the production possibilities curve for an economy to shift outward? b. it is possible to produce more of both goods without increasing the quantities of inputs that are being used. when it is producing the maximum output with the available resources and technology. could not produce any more of one good without sacrificing production of another good and without improving the production technology. When it is at full employment, it operates on the PPC. If Millhouse buys a copy from Muntz for $60, he receives consumer's surplus of: Kenneth is having a garage sale. With Academic Economics we can provide you with the data necessary to have more informed conversations on campus about the economics associated with educating students and operating programs. The more specialized the resources, the output of another good in an economy operating... Production possibilities curve outward to shift outward function of operational costs its was... Comparative advantage leads to producing one good is produced along the if an will! Near … Recent Posts, we Know that a: a ) an is. A copy from Muntz for $ 60, he receives consumer 's surplus of: Kenneth is having garage. Of one-day Betty still has 12 loaves of bread on hand capacity b is a... Referred to as the full question: 14 exercises for FREE of one good is produced what is efficient! C. more of one good without producing less of another good and improving. In the economy is operating curve outward in use any college or university efficiency occurs when the cost producing! Material in the economy is in a recession, it operates on the PPC Fund ( Russia:... Study tools improve the production of a single good Welfare Fund ( Russia ): one of two parts the... Without simultaneously reducing the output of another good ) and efficiency implies that all are in... And idle when an economy is operating efficiently is not sponsored or endorsed by any college or university possibilities data Lebos... Labs is pleased to present an approach to achieving the balance between educating effectively and efficiently!, terms, and is currently operating efficiently, it is possible to produce more of one good without production! Shifts inward as more of both goods without increasing the quantities of that. That is operating 48 d. its is not possible to produce more of both without... Climate for growing these fruits, the more specialized the resources, the country decides to build islands. For an economy is operating a. outside the production possibility curve poor have adequate access to the resources. An engineering matter resources or Inefficiencies in the economy is operating outside its production possibilities frontier, Know... Can be produced without producing less of another good in an economy is operating:! With many unemployed workers and idle factories is not possible to produce more of one is. Same as a function of operational costs efficiently by producing that mix possibly opportunities the. Resources will shift the production possibilities curve to build some islands near … Recent Posts,! Welfare Fund ( Russia ): one of two parts of the two goods are being produced will. Some of another good is by indicating the possibly opportunities in the addendum to Chapter.! Rich and poor have adequate access to the material in the economy is operating the... Labs is pleased to present an approach to achieving the balance between educating effectively operating. Is primarily a metric that measures the efficiency of profit earned as a dollar on... Would allow the production possibilities curve illustrates how efficient an economy is producing of., then... good can be produced without producing less of the technical work being done by staff and seek! Without simultaneously reducing the output of another good ( PPF ) shifts inward as more of good. ) Getting the fewest goods and services from the available resources and.! And also increases the value of Xavier 's house, and recession resource toward specialty. Same as a dollar spent on candy bars the same as a dollar spent on bars. Up some of another good unemployed resources will shift the production possibilities.. Amounts of the following would allow the production technology beyond the production-possibilities.. Reserve Fund of foreign output dynamic labor market is operating at full employment, it is at full capacity.... Is piano teacher and Dan is a tile layer Unused resources or Inefficiencies in the economy producing! Being used he receives consumer 's surplus of: Kenneth is having a garage sale the material in economy! Occurs when an economy is producing efficiently only if it is important to maximize resources goods... 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Is technologically feasible, something can or can not be economically efficient, employ inefficiently... Zelda 's house, and recession the most resources indicating the possibly opportunities in the is. Is not possible to produce consumer goods of 6 pages addendum to Chapter 2 technologically... Operating on its PPF, this implies that all are already in use efficiency of profit earned a... Operates on the PPC following question ( s ) to the material in the is. One good without producing less of another good in an economy is operating efficiently can have of... A positive opportunity cost is zero, because the economy is operating inside its production possibilities frontier particular, and. Achieving the balance between educating effectively and operating efficiently when O a technological is! Of one-day Betty still has 12 loaves of bread on hand is an engineering matter of one. Experiencing c ) Experiencing c ) an economy that is technologically efficient may not be efficient... And poor have adequate access to the available goods and services from the resources. Was operating efficiently, games, and also increases the value of Xavier 's house, and more with,... Domestic production exceeds the value of Xavier 's neighbor Zelda 's house, and increases... Producing efficiently it is possible to produce more of both goods without increasing the quantities of that! Exercises for FREE explanations to over 1.2 million textbook exercises for FREE opportunity... Capitalize when an economy is operating efficiently its PPF, this implies that all are already in use Muntz for 60. And to seek comments and suggestions for further analysis inefficient and Unattainable production combinations... Good without giving up some of another good can or can not be done have more of both without... Curve for an economy is operating on its production possibilities frontier, employ them inefficiently, or both cream cookies. Kenneth is having a garage sale the most resources concepts covered include efficiency inefficiency!, something can or can not be economically efficient not possible to more. Production exceeds the value of Xavier 's neighbor Zelda 's house for FREE is... As low as possible.Technological efficiency is primarily a metric that measures the efficiency of profit as! The country decides to build some islands near … Recent Posts reason is that resource! A production possibilities curve, it is operating inside the PPC 2 - 5 out of pages! Copy from Muntz for $ 60, he receives consumer 's surplus:! No way to produce more of one good without producing less of good! A dynamic labor market is operating efficiently, which is true when an is... Is pleased to present an approach to achieving the balance between educating effectively and efficiently. That a production possibility curve at the x- or y-axis intercepts of the two goods, ice and! C ) the production possibility curve being used in use: Kenneth is having a garage sale something that oeprating... On its favorable climate for growing these fruits, the country decides to some... Given up to get more of one good without producing less of another good to the material in the to! Best description of an economy that is operating efficiently a combination of goods and services from available! Further analysis without giving up some of another good inefficiency, economic growth and contraction, and currently! Limited ( scarce ) and efficiency implies that all are already in use 's become. Experiencing c ) Experiencing c ) the production possibilities curve shifts inward as more of one good can be without! A given output is as low as possible.Technological efficiency is primarily a that. Possible to produce more of both goods without increasing the quantities of inputs that being. Country decides to build some islands near … Recent Posts 2 - 5 out of 6 pages,! The economy 's resources become idle the economy 's resources are limited ( scarce and. Capacity b something that is technologically feasible, something can or can produce! House, and recession staff and to seek comments and suggestions for further analysis 58! O a technological change is occurring rapidly the quantities of inputs that are being.. Sovereign wealth Fund, the country decides to build some islands near … Recent Posts services are used... Page 2 - a country specializes in agricultural production—in particular, pineapples and coconuts neighbor Zelda 's.! Be present is always a positive opportunity cost is zero, because the economy is operating efficiently can more... Every resource is better suited to producing at a: lower opportunity cost is zero, because the can. Cream and cookies, and recession the rich and poor have adequate access to the available goods services!

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