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TOTAL-MARGINAL RULE: A mathematical connection between a marginal value is the slope of a curve of the corresponding total value stating that the marginal IS the slope of the total curve. If the total curve has a positive slope (that is, is upward sloping), then marginal is positive. If the total product has a negative slope (downward sloping), then marginal is negative. If the total curve has a zero slope (horizontal), then marginal is zero. Moreover, if the total curve has an increasing slope (becoming steeper), then the marginal is rising. If the total curve has a decreasing slope (becoming flatter), then the marginal is falling.
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FULL EMPLOYMENT, PRODUCTION POSSIBILITIES: Full employment is the condition that exists when all available resources are engaged in the production of goods and services. In other words, all resources that could be used for production are being used. This is indicated in production possibilities analysis by producing a combination of goods that places the economy on the production possibilities curve. Production possibilities, which analyzes the alternative combinations of two goods that an economy can produce with given resources and technology, indicates full employment when production is on the production possibilities curve. The construction of the production possibilities curve embodies this concept of full employment. Full employment is the condition that exists when all available resources are engaged in the production of goods and services. In particular, each point on the production possibilities curve is based on the presumption that all existing resources are used to produce the two goods. In other words, all resources are engaged in production. This means that full employment exists at every point ON the production possibilities curve. To illustrate this, use the mouse arrow to point out full employment as all points, including D and J, that lie ON the curve. However, also note that point L does not fully employ all resources and point M is not attainable with existing resources and technology.
Recommended Citation:FULL EMPLOYMENT, PRODUCTION POSSIBILITIES, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: April 30, 2024]. Check Out These Related Terms... | | | | | | | | | Or For A Little Background... | | | | | | | And For Further Study... | | | | | | | | | | Related Websites (Will Open in New Window)... | | | | | | | | | | | | | | |
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The earliest known use of paper currency was about 1270 in China during the rule of Kubla Khan.
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"If you wouldn't write it and sign it, don't say it." -- Earl Wilson, Columnist
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ACCR Annual Cost of Capital Recovery
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