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What impact does unemployment has on production possible curve?
Wiki User
∙ 14y ago
If unemployment increased, you would see decreases of the the PPC at any given point, that is, closer to the origin.
Wiki User
∙ 14y ago
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A reduction in the level of unemployment would have which effict with respect to the nation's production possibilities curve..........?
It would not shift the curve; it would be represented by moving from a point inside the curve toward the curve.
In context to the production possibilities curve what is the largest reason for unemployment?
Operating at an inefficient point, i.e. inside the PPF and not on the edge or line of the PPF
What economic data does a production possibilities curve bring together?
Total value of 4 factors of production including:LandLaborCapitalEnterprizeThe PPC curve adds all these factor ups and create a curve show the possible optimum level of production for 2 competing goods.
What are the other names for production possibility boundary?
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
Can massive unemployment shift the production possibility curve inward?
Massive unemployment will shift the PPC to the left because labour force remains underutilized. The economy will produce inside the PPC indicating underutilization of resources.
How is an immediate effect of an increase in unemployment illustrated on production possibility curve diagram?
a movement of the production point closer to the curve
A reduction in the level of unemployment would have which effict with respect to the nation's production possibilities curve..........?
It would not shift the curve; it would be represented by moving from a point inside the curve toward the curve.
In context to the production possibilities curve what is the largest reason for unemployment?
Operating at an inefficient point, i.e. inside the PPF and not on the edge or line of the PPF
Why is unemployment a primary macroeconomic goal?
Think of the 4 factors of production: Land, Labor, Capital and Enterprise. Each of these factors need to be maximized in order to get to the potential output level as illustrated in a Production Possibility curve. In order to fully utilize Labor, everyone needs to be employed and working at full capacity. Hence, low unemployment can lead to an improved production capacity which in turns increase economic efficiency and possible lead to growth and/or development.
What economic data does a production possibilities curve bring together?
Total value of 4 factors of production including:LandLaborCapitalEnterprizeThe PPC curve adds all these factor ups and create a curve show the possible optimum level of production for 2 competing goods.
What are the other names for production possibility boundary?
other names for production possibility boundary are: production possibility curve production possibility frontier transformation curve.
Can massive unemployment shift the production possibility curve inward?
Massive unemployment will shift the PPC to the left because labour force remains underutilized. The economy will produce inside the PPC indicating underutilization of resources.
What are the other names for production possibility curve?
other names for production possibility curve are: production possibility boundary production possibility frontier transformation curve.
Why is low unemployment a primary macroeconomic goal?
Think of the 4 factors of production: Land, Labor, Capital and Enterprise. Each of these factors need to be maximized in order to get to the potential output level as illustrated in a Production Possibility curve. In order to fully utilize Labor, everyone needs to be employed and working at full capacity. Hence, low unemployment can lead to an improved production capacity which in turns increase economic efficiency and possible lead to growth and/or development.
What was the Production Budget for Trouble with the Curve?
The Production Budget for Trouble with the Curve was $60,000,000.
What is the Importance of production possibility curve?
Importance of production possibility curve in allocation resources
Does unemployment move outside the production possibilities frontier?
The production possibilities frontier is a curve illustrating the various ratios of goods that can be produced by a nation when that nations economy is at maximum productivity, using all resources (including labor). To be at maximum productivity there must be full employment. When there is not full employment (unemployment) the country cannot be on it's PPF, let alone beyond it. The nations economy is represented by a point within, or under, the curve.
