ECS1501 assessment 2 semester 2022 (ECS1501)

Economics ʮ ECS1501 assessment 2, Suggestions answers by Xolile
(0719998611/0712362704)

, Question 1

A point inside a production possibilities curve

•could indicate that some resources are unemployed.

•implies that too much capital and not enough labour are being used.

•is unattainable.

•is more efficient than points on the production possibilities curve.

Question 2

The production possibilities curve illustrates

•all goods and services that are desired but cannot be produced due to scarce resources.

•the combination of goods and services that can be produced efficiently.

•all goods that can be produced by an economy.

•all possible production levels of capital goods.

Question 3

Using the production possibilities curve model, unemployment is described as producing at a
point

•on either end of the PPC curve.

•on the exact middle of the PPC curve.

•inside the PPC curve.

•outside the PPC curve.

Question 4

Technological progress makes the production possibilities curve

•shift inward toward the origin.

•shift outward from the origin.

•become less linear and more bowed.

•become more linezar and less bowed.

Question 5