What does a country’s production possibilities curve depend on? It depends on available resources and technology. The maximum amount of the combination of goods that a country can produce given its available resources and technology. It represents the different choices or trade-offs that society faces.

The bowed-out shape of the production possibilities curve results from allocating resources based on comparative advantage. Such an allocation implies that the law of increasing opportunity cost will hold.

Shifts in the production possibilities curve are caused by things that change the output of an economy, including advances in technology, changes in resources, more education or training (that’s what we call human capital) and changes in the labor force.

What happens when a country’s resources are underutilized? When a country’s resources are underutilized, the GDP goes down and the economy is inefficiently using their resources. We see underutilization when a point is to the left of the production possibility frontier. Explain scarcity.

Production possibilities curves show efficiency by having inefficiency below the curve. Efficiency is the curve. Explain why a country’s production possibilities depend on its resources and technology. Resources and technology affect a country’s productivity at any given time because technology affects efficiency.

This curve helps a nation’s economists determine the alternative ways of using that nation’s resources. Economists often use graphs to analyze the choices and trade-offs that people make. A production possibilities curve is a graph that shows alternative ways to use an economy’s productive resources.

what four techniques do producers usually use to deal with limited capital goods? when faced with limited capital goods, producers often maintain their present capital goods, change inventory procedures, find alternative capital goods, and/or modify current technology.