- 1 What does it mean if a company is underutilizing its resources?
- 2 Which would a company do to increase its human capital?
- 3 What do you call an economy that is producing the maximum amount of goods and services is considered?
- 4 What is the opportunity cost of a decision?
- 5 Why does every decision involve trade offs?
- 6 What are the types of efficiency?
- 7 Which of the following is the best example of a public good?
- 8 What is the difference between a scarcity and a shortage?
- 9 What are 3 examples of human capital?
- 10 Why is human capital not recorded on balance sheet?
- 11 How does unemployment affect PPC?
- 12 What is an example of a shortage?
- 13 What happens as production of one item switches?
What does it mean if a company is underutilizing its resources?
the maximum amount that an economy can produces. A company that makes baseball caps is underutilizing its resources. What does this mean? The company is producing fewer caps than it could be.
Which would a company do to increase its human capital?
A firm can improve its employees’ human capital through continuing education and on-site education. The firm can increase its human capital by investing in a graduate business degree for the engineer. A company can use on-site education such as workshops to increase its employees’ human capital.
What do you call an economy that is producing the maximum amount of goods and services is considered?
Understanding the PPF. In macroeconomics, the PPF is the point at which a country’s economy is most efficiently producing its various goods and services and, therefore, allocating its resources in the best way possible.
What is the opportunity cost of a decision?
Opportunity cost is the value of what you lose when you choose from two or more alternatives. It’s a core concept for both investing and life in general. When you invest, opportunity cost can be defined as the amount of money you might not earn by purchasing one asset instead of another.
Why does every decision involve trade offs?
Every decision involves trade-offs because every choice you want results in picking it over something else. Opportunity cost means choosing the better one of two ideas. There will always be an alternative; what could have happened instead.
What are the types of efficiency?
Economists usually distinguish between three types of efficiency: allocative efficiency; productive efficiency; and dynamic efficiency.
Which of the following is the best example of a public good?
Examples of public goods include fresh air, knowledge, lighthouses, national defense, flood control systems, and street lighting. Streetlight: A streetlight is an example of a public good. It is non-excludable and non-rival in consumption.
What is the difference between a scarcity and a shortage?
Scarcity and shortage are not synonyms. Scarcity is the simple concept that, while some resources may be limited, supply equals demand. Shortage, on the other hand, occurs when markets are out of equilibrium and demand exceeds supply. Just because a product is scarce, does not mean that there is unfilled demand.
What are 3 examples of human capital?
Human capital can include qualities like:
- Technical or on-the-job training.
- Mental and emotional well-being.
- People management.
- Communication skills.
Why is human capital not recorded on balance sheet?
The value of human capital is not recorded anywhere in the financial statements of an organization, nor can it be created as an intangible asset as a result of a business combination. This is why investments in human capital are charged to expense in the period incurred – no quantifiable owned asset is created.
How does unemployment affect PPC?
UNEMPLOYMENT, PRODUCTION POSSIBILITIES: Unemployment means resources that could be used for production are not being used. And when some resources are not being used for production, the economy does not reach the production possibilities curve–the curve that corresponds to full employment.
What is an example of a shortage?
For example, demand for a new automobile that a manufacturer cannot fulfill. – Decrease in supply — occurs when the supply of a good drops. For example, a virus among pigs means many of them must be euthanized, creating a shortage of pork products.
What happens as production of one item switches?
The production possibilities frontier shows the maximum combination of two types of goods that can be produced using all resources. What happens as production of one item switches to the production of another item? a. The cost of production decreases.