Nobody downloaded yet

Production Possibilities Curve - Essay Example

Comments (0) Cite this document
The combination of the products and service is made on a pro-rata basis so as to achieve the optimal levels of output from the production process. Conversely, the production…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.9% of users find it useful
Production Possibilities Curve
Read TextPreview

Extract of sample "Production Possibilities Curve"

Download file to see previous pages In coming up with the production possibility curve, a number of assumptions have to be made. The model assumes that the goods being combined are only two. In addition, the curve also implies that they two goods can be interchanged. Interchanging of the two products does not affect the production of products and services desired. Furthermore, an assumption is also made that the factors of production do not vary. Similarly, an assumption is made that the period is limited, there are no technological changes, and all resources are utilized (Tucker, 2011).
Most countries strive to manufacturer goods and services according to the production possibility curve. It is impossible for countries to produce goods and services beyond the production possibility curve. In addition, countries that produce in the curve are said to be inefficient. Precisely, it can be claimed that a country is not utilizing its resources adequately. The curve can shift outwards due to changes in a number of factors. Some of the factors may include advancement in technology and innovation of new methods of production (Russell, 2013).Furthermore, an outward shift can be brought about due to improved Gross Domestic Product and the economy in general. However, an inward shift of the curve is different. It is possible for the curve to shift inwards due to lack of sufficient factors of production. For instance, some countries entirely depend on oil as their primary factor of production. If such factors of production are, the production possibility curve will shift inwards. In addition, natural calamities can influence the curve to shift inwards (Tucker, 2011).
Natural disasters lead to loss of lives. Consequently, the nation’s labor force is significantly reduced. Hence, a nation’s factor of production is significantly reduced forcing the curve to shift inwards. In addition, the natural calamities affect industry from operating. Most of the available ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Production Possibilities Curve Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Production Possibilities Curve Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from
(Production Possibilities Curve Essay Example | Topics and Well Written Essays - 1000 Words)
Production Possibilities Curve Essay Example | Topics and Well Written Essays - 1000 Words.
“Production Possibilities Curve Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Production Possibilities Curve

Yield Curve

...? Yield Curve The paper aims to address the following to use data from the Bloomberg Web site ( (or from any other source that you prefer) to graph the shape of the yield curve today; and (2) to determine and explain what today's financial marketplace is expecting to happen to interest rates in the near future. Yield Curve The yield curve is defined as a “graph that plots the yields of similar-quality bonds against their maturities, ranging from shortest to longest” (Investing Answers, 2011, par. 1). From the Bloomberg website, the yield curve as of 8 April 2011 is depicted below: Source:...
2 Pages(500 words)Essay

Yield Curve

...-bond Rate on that Date 4.91 1. The yield curve is almost inverted on this date. This is because the trend that can be inferred from the graph is that the long-term debt instruments have a lower yield than the short-term instruments. Inverted yield curves have been an accurate forecasting tool for recessions. This type of a yield curve shows that the future interest rates will be lower because of which there is an increase in the demand for long-term bonds. And as a result the yields fall for the long-term bonds. 2. 10- Year Bond Purchased for $1000 5 Years Ago  Original Value $1000  Coupon Rate 4.79 Current 5-Year Yield to Maturity 0.98 Number of Semi-Annual Periods 10 Current 5-Year...
4 Pages(1000 words)Essay

Indifference Curve

...). There exists an indifference curve through any given point on an indifference map. Today's Economy is market driven where customer is the king. The market price is determined by forces of 'Demand and Supply'. To excel in the market, the firms must asses the demand of the customer. Consumer theory uses indifference curves and budget constraints to produce consumer demand curves. A budget constraint shows the consumer's purchase opportunities as every combination of two goods that can be bought at given prices using a given amount of income. Consumer's optimal combination of goods to consume is the amount that maximizes his utility subject to his/her budget constraint. In the...
2 Pages(500 words)Essay

Health Budget and the Production Possibilities

...Health Budget and the Production Possibilities Curve The analysis of how production changes with the change in inputs or budgets is a scope of Microeconomics. We use the term production possibilities curve to mean the "curve that shows the combinations of two goods that can be produced with fixed quantities of inputs" (Robert S. Pindyck). Supposing that the two health care goods that the government produces are hospital and medicine and the two inputs are labor (composed of the nurses, doctors and other medical practitioners) and the capital (the machines and equipments), the production...
1 Pages(250 words)Essay


...M & M’s Curve and Color Distribution Analysis M & M’s Curve and Color Distribution Analysis The analysis starts with purchase ofthe M & M package and categories the candies according to the color distribution. Subsequent counts to determine the number total number of candies with a particular color gave varying results (Ziemer, 2010). The 24 Packages of the candies had an average color distribution of Red (53), Orange (94) Yellow (51) Blue (88), Green (80), and brown (51). This was different as per the percentage distribution of colors posted in the company website. As such, it was critical to carry out an analysis. Results Red Orange Yellow Blue Green Brown Total M & M’s Percentage Expected (as per ...
1 Pages(250 words)Essay

Assignment Production Possibility Curve

...Production Possibility Curve Why might the Homo sapiens production possibilities curve have shifted outward to the right much more rapidly than those of Neanderthals? Neanderthals are a group of extinct sub-species closely linked to the genus Homo. This genus is also associated with the modern humans scientifically known as Homo sapiens. This species went extinct approximately 30,000 years ago and it was the closest relation to the modern man associated with. In this light, the humans developed at a slower rate compared to the Neanderthals whose development was exemplary and very fast. In this context, they lived fast lives that ended at...
1 Pages(250 words)Essay

Sudan Food Famine and the Production Possibilities Curve

...Lecturer’s and Number Submitted Question Demonstrate the effect of the war in the Sudan on Sudan’s productive capabilities in terms of the production possibility curve regarding Industrial Goods and Agricultural Goods. Answer Sudan is a state that has experienced restless over the years with the current instability being caused by attacks of Arabs nomads and herders on the African farmers in the Darfur region. The state lies in division where the northern and southern territories stand independent and in conflict. With the ongoing war, there have been a number of effects which have impacted on the lives of the citizens negatively. Farms have been destroyed in the war,...
1 Pages(250 words)Assignment

J curve

...International Finance Test 4 (10% WEIGHTING) Thursday 20th November Support your answers with examples and graphs where relevant. Question Explain the so-called “J-curve” theory. The J-curve theory is the description for the temporary design in the variation of the trade balance of the country in reaction to a significant or abrupt weakening or depreciation of the country’s currency. The temporary design usually resembles a J. Temporary variation of the trade balance of the country can be similar to the volatility experienced in the rates of exchange. If the volatility in the exchange rates and the variation in the trade balance of the country occur for a long time, then, serious implications do arise. However, the question... is, what...
3 Pages(750 words)Essay

Immense Possibilities

...aims to address this situation and help the teen parents on this account. Some of them brace up for the challenge prioritizing their past patterns and thinking of the children in first place. The higher rates of social disturbances are attributed to the absence of proper parenthood in American society. A platform such as this one provides guidelines and directives for such scenarios because this process is quite hard in terms of emotional stablity and handling pressure (I.P). Closing the Loop. Making soil from waste: The decomposition of living material and the plants recycle into a fossil fuels and bio fuels production from within. However the industrial needs and petroleum extraction has led to an imbalance which is...
2 Pages(500 words)Movie Review

Power Curve the medium scale motions, which transfer to the smaller scale motions. The smaller scale gradients become large enough and force the viscosity to dissipate turbulent kinetic energy. At the inertial subrange, turbulent kinetic energy passes through this range of scales without much dissipation. 8 – u_2 = (u_1 + u_4)/2 Bernoulli’s Eng. and conservation of mass, conservation of momentum, F=ma. 9 – 10 – 11 – The variability of wind the resource is equal to the variability of wind power. On the other hand, the variability of fuel costs is also equal to the variability in the power production costs. Traditionally, the cost of natural gas has been highly variable. 12 – Capacity factor refers to the actual power...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Production Possibilities Curve for FREE!

Contact Us