Click on the title link to find an excellent article on the Production Possibilities Curve and Frontier. The way this weeks blog will work is that I will post a question from the article. The first person to post will answer my question, and then leave a question of their own from the article. The next person to post will answer that question then write one of their own and so on and so on. Question #1 Why do most world religions teach their adherents to have an attitude of gratefulness?
Link to Article
(6th Period)
ReplyDeleteAnswer to Question #1:
Most world religions teach their adherents to have an attitude of gratefulness because contemporary human society as a whole has a rich resource base on which to build (even if these resources are not necessarily equally distributed across the planet).
Question #2 for the next person to answer:
What concepts do economists use a societal production possibilities frontier to illustrate?
Hannah Abie Period 2
ReplyDeleteA concept that economists illustrate is when its resources are completly used, a country can produce anywhere along its production frontier. When resources are not fully used, the country cannot reach its full potential.
Question #3
What are some ways that countries can reach a successful production frontier?
Amanda Nieto Period 4
ReplyDelete1) Finding the best social organization of work will depend on the nature and extent of the available resources, as well as on the overall culture of the society inside the country
2)Since the country mainly depends on the available capital resources,the technique of production and trade of the resource results in a successful frontier.
Question #4:
What are some examples of productive activities that lead to resource depletion or degradation?
(period 6)
ReplyDeleteProductive activities that causes resources to be depleted involve the use of fossil fuels, activities that damage animal habitats and dangerous working conditions that leave humans mentally and physically drained.
Question #5:
What are some examples of output pairs used in the article?
Chandler Jacobs period 2
ReplyDeleteSome examples of output pairs used are guns and butter, health and highways, and soda and pizza.
This comment has been removed by the author.
DeleteQuestion #6: What is the PPF model?
DeletePeriod 2
ReplyDeleteThe PPF model is short for the production possibility frontier model and it's a collection of points which three socially required things meet and they are: (1)No involuntary unemployment or undesired idle productive capacity. (2)Application of optimal technology and social organization. (3)Efficient resource allocation
Points inside the PPF represent inefficiency. Points along the PPF represent the idea that scarcity creates a need for trade offs.
My question: what is an opportunity cost and how does it relate to the PPF?
(Period 6)
ReplyDeleteResponse: The opportunity cost is opportunity cost is the value of what one loses by not choosing the best alternative to the choice one actually makes. Looking at the PPF, we see that the cost of increasing gun production is less butter, and the cost of increasing butter production is fewer guns.Of course, we could put on the axis many other pairs of outputs, besides guns and butter, and still illustrate these concepts. We could look at soda and pizza, cars and bicycles, or health and highways. In the real world, such guns/butter, or militarization/peacetime tradeoffs can be crucially important.
Question #8: From a business standpoint, what needs to be currently produced to guarantee maximum profit? (use guns vs. butter analogy)
From a business standpoint, Profit maximization is an important concern because businesses are run in order to earn the highest profits possible. I would produce more guns than butter because in PPF the movement from point B can be explain by if we were to put people who work to take care of the cows in the production lines for guns, then we can see a little increase in the production of guns since we have machinery to produce guns but we need people to take care of the cows.
ReplyDeleteQuestion #9
What elements influence the techniques of production?
Arij Moiz (period 2nd)
DeleteCarina Hung, Period 6
ReplyDeleteThe elements that influence the techniques of production are what the available capital resources are and how much of the resources there are. Different countries benefit the most from producing from different available resources. What is best for a country that specializes in manufacturing, for example, would differ from what is best for a country that focuses on farming. In order to gain the most it can, a country would focus on what it is good at producing.
Question #10: When is the goal of the efficient process achieved and how does it affect production?
Zoe Leibowitz, Period 2
ReplyDeleteEfficiency is achieved when the maximum value of outputs is produced from a given set of inputs. This affects production by taking the resources used in societies' production processes and allocating them within enterprises in such a way in which each resource is distributed so that it can contribute most to desired production.
Question #11: According to the article, what does the best technique of production depend on?
Heather Bennett, 6th Period
ReplyDeleteThe best technique that production depends on is the type and quantity of the available capital resources.
Question #12: How does the article define opportunity cost and what are some examples of it?
The article defines opportunity cost as "the value of what one loses by not choosing the best alternative to the choice one actually makes". Looking at the PPF, it shows that the cost of increasing gun production is less butter, and the cost of increasing butter production is fewer guns.
ReplyDeleteQuestion #13: What productive activities have the potential to cause the depletion of resources?
The intensive use of fossil fuels is causing degrading air quality, and contributing to global climate change. Production processes that destroy important watersheds and wildlife habitats also deplete resource. Mind-numbing drudgery, or work in dangerous circumstances, can degrade human resources as well.
ReplyDeleteQuestion #14: What is really expected when economists say "full employment"?
Devin Laird
ReplyDeletePeriod 2
Full employment is actually when unemployment is 4.5%. because full unemployment is impossible to reach.
Question #15: What is the purpose of Economic Security in the United States?
Tracy Colbert
ReplyDeleteperiod 2
Economic security or financial security is the condition of having stable income or other resources to support a standard of living now and in the foreseeable future. In the United States, children's economic security is indicated by the income level and employment security of their families or organizations. Economic security of people over 50 years old is based on Social Security benefits, pensions and savings, earnings and employment, and health insurance coverage.
Question #16: According to this article what would enable society to produce increased quantities of desirable outputs?
Kylee Brouwer
ReplyDelete2nd period
Efficient resource allocation would enable society to produce increased quantities of desirable outputs. This would mean resources are assigned to certain enterprises that will achieve a desired result using the minimum value of resources.
Question #17: Why could advances in technology cause a change on the production possibilities frontier and how would the PPF be affected?
(Period 6)
ReplyDeletetechnological progress can lead to very long-run improvements in productive capacity. New technologies can create new, more efficient methods for converting resources. Which would expand PPF over time.
#17 What kinds of productive activities lead to resource depletion ?
Sarah Rassam
ReplyDelete6th Period
Response: The kinds of productive activities which lead to resource depletion or degradation include a variety of productive activities. One of these productive activities include the intensive use of fossil fuels. This activity functions to deplete petroleum reserves as well contributing to the cause of climate change and degrading the quality of air. Another productive activity which may lead to resource depletion, due to it causing people to experience bad mental and physical health problems, includes working within dangerous circumstances. When wildlife habitats are destroyed, that can lead to major resource depletion in the world.
Question #18: How is the intensive use of fossil fuels significant?
Sean Liu
ReplyDeletePer. 6
Answer to #18: The intensive use of fossil fuels creates a higher need of limited natural resources. This leads and forces us human to efficiently distribute our resources within "the nation of scarcity".
Question #19: What does a Production Possibilities Frontier model tell us and how is it used?
Saniza Sunesara- period 6
ReplyDeleteThe production possibility frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The PPF model measures the efficiency in which two commodities can be produced together, helping managers and leaders decide what mix of commodities are most beneficial. The PPF assumes that technology is constant, resources are used efficiently, and that there is normally only a choice between two commodities.
Question 20- Economists use the notion of a societal production possibilities frontier to illustrate what concepts? Also give an example.
Neethu Thampy
ReplyDeletePeriod: 6
Response: Economists use the notion of societal production possibilities to illustrate concepts of scarcity, trade offs, choice, full employment, and efficiency. These concepts are also modeled in an economy where only the distribution of resources is necessary in two possible outputs. An example would be the guns-and-butter tradeoff which can refer a society as being either militarized (guns) or be a consumer oriented society (butter).
Question #21: Describe each of the three requirements the production possibility frontier (PPF) has to meet?
Brayan Reyes, Period 2
ReplyDeleteResponse: The PPF must reflect full employment, in the sense that everyone who wants to work is working to their full potential. Different societies must organize their technological use and social organization to the point where it works best for their particular region. Resources must be used in the most efficient way possible, minimizing opportunity cost by taking into account what the sacrifices are made.
Question #22: Points can sometimes exist below or above the PPF curve. What does this signify?
Isabella Gallegos
ReplyDeletePeriod 4
The three requirements that the PPF has to meet are no involuntary unemployment, using technology and social organization to its maximum potential and using resources efficiently. No involuntary unemployment means that anyone who is not looking for a job, or currently in between one, does not count towards the unemployment percentage. The second requirement means that technology and social organization should be used to encourage people to work, not discourage. The third requirement simply states that resources should be allocated so that maximum efficiency and profit can be produced.
Question #22: Explain the curve on Figure 1.
maverick thigpen
ReplyDelete(6th period)
response: the curve on figure one represents the PPF curve but take into account a technological or production breakthrough that significantly increases productivity of x resource.
question 23: explain the curve in figure 3
Neelam Patel
ReplyDeletePeriod 2
The curve in Figure 3 shows a production/maintenance frontier which shows the trade-off between resource-depleting kinds of production and resource maintenance activities. There are two outputs with two lines that show future PPT with high maintenance now and future PPT with high resource depletion now. Also, it shows how to choose not only what to produce, but how to produce it. Some production methods are more resource-depleting than others.
Question 24th: Give a summary of the "Abundance and Scarcity" section.
Meyer Wilson
ReplyDeleteperiod 2
In the Abundance and Scarcity section, it is said that although we have accumulated abundant amount of resources others are very scarce. Scarcity is emphasized in economics. This really means that w have to make choices on what is more important to us. In a lot of situations there is going to be some sort of trade off. There will have to be a choice between resources like time which is going to make a situation better or worse.
Question 25: Give a summary on the "Society's Production Possibilities Frontier" section.
Roxanna Shahraki
ReplyDeletePeriod 6
The PPF illustrates society's trade offs between production of 2 goods. On the vertical axis is one good, and another on the horizontal. The shape of the line on the graph is curved because there is never a perfect trade off between 2 goods, because the societies resources are better for the production of one food than the other. The PPF has 3 important conditions: 1. No unemployment 2. Use of the society's best technology and 3. Efficient use of resources.
Question 26: Why do most economists emphasize the concept of scarcity?
Economists emphasize scarcity because resources in the world are limited. They do not want to waste anything that is limited.
ReplyDeleteQuestion 27: What are patents and copy rights?
period 5th
ReplyDelete@ bryan p: patents are a government authority or license conferring a right or title for a set period and copy rights are exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same.
question 28: The bowed-out shape of the PPC curve comes from what?
Period 4
ReplyDeleteThe bowed-out shape of the curve comes from the observation that some resources are likely to be more suited for production of one good than for the other.
Question 29: Given that points inside the PPF illustrate waste or inefficiency, points along the PPF itself illustrate what respectively?
Christopher Yee
ReplyDeletePeriod 6
Points along the PPF itself illustrate the important notion that scarcity creates a need for tradeoffs
Question 30: What is shown in figure 2?
Nathan Schaper
ReplyDeletePeriod 2
Entrepreneurs and inventors can make new technologies to alleviate the tradeoffs shown in Figure 2. So in figure 2, these trade offs are shown in a PPF.
Question 31: Which type of activities contribute an ongoing flow of outputs without drawing down the stock of capital resources?
Janelle Rodriguez
ReplyDeletePeriod 2
sustainable production activities like farming and forestry processes when they are suitable do not add to the resource base however, they do not draw down the stock of capital resources nor do they deplete it.
Question 32: Why do we generally want to conserve resources?
This comment has been removed by the author.
ReplyDeleteJoel George
ReplyDeletePeriod 2
We generally want to conserve resources because we live in a world where our economic reserves our constantly being used, this is why we understand the concept of scarcity. We have to conserve resources so that we don't have to declare bankruptcy or be drained of our capital and natural resources.
Question 33: Why do we never see big business go to the extreme ends on PPF charts? Why would it be illogical to make such a move in business?
Prasun Dhawan - Per 2
ReplyDeleteAnswer to Question 33: Moving to one of the extreme ends of a PPF chart would be a bad move for businesses because an important factor for business success is it's versatility and adaptability. Markets are constantly changing and people always want more. Thus, the more versatile a business, the more markets it can tap into in order to thrive.
Question 34: If the only thing that's constant in our world is change, how can we utilize economic models to predict and deal with this constant change?
Athul Johnson
ReplyDeletePeriod 2
To deal with in our world, we can use economic models to predict and deal with this constant change. For example using a PPF chart can help us decide which good be most beneficial to us. Another way to use economic models is through trial and error because then we can learn from our experiences. Also, we can use older economic models as well to predict and deal with this constant change.
Question 35: What are some countries that are saving their raw materials to benefit them later on? And what is that raw material?
Aqil Ali
ReplyDeletePeriod 2
One of the countries that is trying to save their resources and is widely relying on outside imports is the United States of America. They are relying on outside imports for gasoline even though they have some reserved areas where they can be using it from. The gasoline they save can be used at later times when it is more needed for the people, but the imports are not hurting United States as of right now.
Question 36 : What are some tradeoffs or products that need to be more focused on and would be more beneficial at this time on the PPF chart? Which countries are using resources to produce products that will help them long term vs countries building only for the present? (Hint : China)
Joel Sibi
ReplyDeletePeriod 6
I think products that would be beneficial to focus on if one were concerned with benefits that were advantageous in the present would be to focus on consumer goods. America is a country who does this and is one of the greatest world economic power. India and China are both countries who are building goods for the future and they focus on capital goods.
Question 37: Do you think America should keep a consumerist economy or should we adjust and change to something else? Why or Why not?
Aubriana McDermott
ReplyDeletePeriod:6
I think america should change to something else. The consumerist economy is not satisfying the consumer. We shouldn't try to change having a capitalist economy. People will continue to think they don't have enough, thought they have more than the average person in another country no matter the amount of money they make and receive. A limited consumption would benefit the American economy more than deteriorate it.
Question 38: what type of productive activities are at odds with resource maintenance? Why do you think so?
One of the points that the article makes is that a primary of productive activity being at odds with resource maintenance is due to the productive activity actually beiing counter-productive in the long run. I compare this to taking one step forward now, only to take 10 steps backwards later. This is an issue in the world today most likely because often times people look at immediate gain without regard to consequences
ReplyDeletethat are possible in the future.
Question 39:
What do you think can be done to reduce the tension that is put upon resource maintenance by productive activity?
This comment has been removed by the author.
ReplyDeleteTruth Thomas
ReplyDeletePeriod 4
I believe that by finding a steady balance between productive activity and resource maintenance would help relieve tension, such as if productive activity increased, more actions should be taken to preserve resources, or find other resources to prevent an overuse of certain resources.
Question 40: According to Figure 3, would it be better to increase resource-deprecating production in the present or to increase resource-depleating production in the future?
This comment has been removed by the author.
ReplyDeleteRushil Mistry
ReplyDeletePeriod 6th
I think that we should increase resource-deprecating production in the present since over in the upcoming years resources are going to become rare and thus it important to consume all the resources.
Question 41: Will advances in technology always push out the PPF more than resource depletion will pull it in?
This is merely a belief, therefore no. It will not always push out the PPF more than resource depletion may put in, that is not to say that it is impossible however. Simply put, when a country does not use all of its resources, the country cannot reach its complete potential.
DeleteQuestion 42: What are some examples of efficient resource allocation from the article or one by yourself?
This comment has been removed by the author.
ReplyDeletePeriod 2
ReplyDeleteFrom the example in the article, the use of efficient resource allocation is described by the scenario in which an economy that considers the output of only "butter' and "guns" has built gun factories on their best pasturelands. This is seen as not an efficient resource allocation because this would not contribute most to desired production. Instead, they should use the best pasturelands for "butter" instead of "guns" as it would maximize the value of their output more.
Question 43: What kinds of goods and services lead to an improved resource base and how do they improve it?
Taylor Mott
ReplyDeletePeriod 6
Production of goods and services that protect the environment, or that encourage the formation of new forms of knowledge and social organization, also lead to an improved resource base. This occurs because as technology improves so does a society's ability to convert resources into outputs more efficiently.
Question 44: What kind of productive activities lead to resource depletion or degradation?
Tolu Ojo
ReplyDeletePeriod 6
The intensive use of fossil fuels, as well as production processes like drilling for oil or chopping down trees harm the air quality and contribute to climate change. As long as humans continue to live the way we live, resources will continue to become scarce and the climate will continue to worsen.
Question 45: How do you think that society can reduce the amount of harm they do to the earth while increasing the amount of good? (Ex. Reducing carbon footprint)
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteHunter Bergfeld
ReplyDeletePeriod 2
Question 45 answer: Efficient resource allocation- using minimum resources for Maximus product. This could be done by using more efficient resources to create products.
Question 46: Economist use the notion of a society possibilities production frontier to illustrante what concepts?(5 answers)
Priyanka RAnchod
ReplyDeletePeriod 6
Scarcity, tradeoffs, choice, full employment, and efficient
Question 47: Explain what points inside and along the PPF represent?
This comment has been removed by the author.
ReplyDeleteFigure 3 shows a production/maintenance frontier, which illustrates the tradeoff between resource-depleting kinds of production and resource maintenance activities (the latter including both conservation and investment). Point A illustrates a societal decision to engage in considerable resource-depleting production in the present year, while putting little emphasis on maintenance for this year and in a lower level of resource-depleting production. Point C is, again, truly unobtainable (for now), and Point D illustrates a case of inefficiency or wasteful unemployment.
ReplyDeleteQuestion 48 : why aren't there involuntary unemployment or undesired idle productive capacity?
ReplyDeleteJoseph peters 2nd period
ReplyDeletePeriod 6
ReplyDeleteThey represent pairs of quantities.
What does the guns-and-butter tradeoff represent in todays society?
Vinay Abraham p.4
ReplyDeleteIf the only people unemployed are those who are just very temporarily between employment situations, we would still say the economy enjoys “full employment.” People may choose not to work, or to work less than full-time. However, if people involuntarily stay unemployed for a significant period of time, or involuntarily work less than full-time or work at jobs that fail to make good use of their skills, we would say that there is unemployment or underemployment. Analogously, in a fully efficient economy the available stock of manufactured capital resources (such as machinery) and natural capital resources (such as land and mineral deposits) will be used at optimal rates, so there is no unanticipated and undesired idle productive capacity. The existence of involuntarily idle labor and/or capital resources, which could be used to produce additional output, usually implies that an economy is operating at less than its potential.
Question 49
How would we determine which point on the PPF would be best?
Jane Hua
ReplyDeletePeriod 6
There is no objective way to determine which point on the PPF would be best since each society varies in resource maintenance, distribution, and consumption. Although the PPF provides a mental image for thinking about tradeoffs, it tells us little about how to choose among the possibilities it illustrates.
What external variables are required to shift the Production Possibility Frontier of a society?
This comment has been removed by the author.
ReplyDeleteEdwin Cabrera
ReplyDelete6th Period
Variables that could shift the production possibility frontier is the scarcity of resources required. Also, the amount of workers needed, so if there is unemployment then the curve will shift inwards because there is a loss in production ability.
Question: What is a way that the PPF curve could shift outwards instead of inwards?
Period 6
ReplyDeleteA way the PPF curve could shift outward is through the employment of more workers which then will increase the total number of products that could be made on the x and y axis. With these increase in the total maximum of each product, the curve shifts outward causing a bigger curve. Other factors besides increased employment could be improved technology or production methods which also increases the total maximums on the two products.
Question: Which is smarter for the economy and which one do we actually do: maintenance or resource depletion? Why do we do what we do?
Maintenance is smarter for the economy; unfortunately, resource depletion is what we actually do. We participate in resource depletion because our economies are focused on the now. They want to produce mass amounts of products now and reap the benefits without thought of future consequence.
ReplyDeleteWhat type of situation would we call unemployment or underemployment?
While maintenance is smarter for the future of the economy, our society uses a system between maintenance and resource depletion. We do this to make sure we are maintaining resources for the future but also using the resources we have alotted to improve the quality of our economy.
ReplyDeleteQuestion: On the graph representing the different PPF options for producing guns and butter, why is point D associated with waste, unemployment and inefficiency?
Mervin Cherian
ReplyDeletePeriod 2
This is because point D is inside the curve. This means that the point is not working efficiently or it is not working up to its potential. Point D happens when there are people unemployed. This is when not everyone in the economy is being used to its full potential.
Question: What does point C mean, in the Maintenance and resource depleting production PPF graph?
Drew Garza Period 2
ReplyDeletePoint C means that this task is unobtainable and impossible to operate because it is not within the means of which can be produced.
Question: Which point on the graph illustrates obtainable, but wasteful employment?
This comment has been removed by the author.
ReplyDeletePoint d represents waste of resources and economic inefficiency
DeleteQuestion:What does point b represent in the PPF graph?
Point B illustrates a decision to engage in a higher level of maintenance this year and in a lower level of resource-depleting production.
ReplyDeleteWhat does point A mean in the PPF graph?
Point A illustrates production
ReplyDeleteWhat does PPF reflect?
Period 6
ReplyDeleteJacob Gassmann
ReplyDeletePeriod 2
The PPF reflects the trade off between two outputs if all resources in a society are being used.
Question #whatever: why are there generally only two products shown on a PPF?
This comment has been removed by the author.
ReplyDeleteSarah Johnson
ReplyDeletePeriod 2
A production possibilities frontier (PPF) is a diagram that illustrates the possible production points for an economy. A PPF is the boundary between combinations of output that are possible with current resources and technology and those output combinations that are not possible. A PPF can illustrate two types of output. The quantity of one output is graphed on the horizontal (X) axis and the quantity of the other output is graphed on the vertical (Y) axis. Production points on a PPF are possible and efficient. Production points on a PPF represent efficient use of all of the economy’s resources. It is impossible to produce more of one product, measured on one axis, without producing less of the other product,measured on the other axis. Therefore, due to the type of graph in which PPF is shown results in the comparison prediction of only two products one on each axis of the graph, X and Y.
How can technological progress lead to long-run improvements in productive capacity?
Humdaan Balagamwala
ReplyDeletePeriod 4
Productive capacity is the maximum possible output of an economy. Technological progress could lead to creating new products that could help preserve the environment, or finding ways to make certain processes more efficient. These new potential inventions could help save the environment and have positive implications for the future.
What factors are considered when determining what point on the PFF is best?
Doris Chien
ReplyDeletePeriod 2
Economists use the notion of a societal production possibilities frontier to illustrate concepts of scarcity, tradeoffs, choice, full employment, and efficiency.
What will push out the PPF more than resource depletion?
Alexus Guevarra
ReplyDeletePeriod 2
The most common push for a PPF shift occurs in a change in technology, or due to economic growth. Such as, if someone developed a faster computer, or a more efficient way of manufacturing cars, we might see a shift right in the PPF. The outward shift could also occur as a result of economic growth, which allows more production of both capital and consumer goods.
What does a inward shift of a PPF curve represent and how would it affect the economy?
(Period 6)
ReplyDeleteWhen determining what point on the PPF is best or highest, one can consider a variety of things that affect resources. Labor, technology, and capital. Labor would increase or decrease the amount of product produced which affects the amount of resources available. Technology speeds up production, leading to the more orders for materials. Scarcity is also a major factor that determines the point on the PPF, because that determines the opportunity cost for a company and faces them with the decision of which product they should make.
What do you think happens to the PPF when renewable resources are involved?
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ReplyDeleteperiod 2
ReplyDeleteAfter involving a renewable source, the production to cost ratio will change. if the source is scarce then the resource will cost more. The the PPF will change in correspondence to which side is the renewable source, if the x axis is dependent of the renewable source then y will increase in the potential. Less x will be able to be produced
Question: What factors prevent the PPF from being a straight line in the graph?
(Period 4)
DeleteWhether or not the PPF is represented by a line or an actual curve on the graph doesn't really matter and is just kind of semantics. This aesthetic does not change what the PPF represents and is thus rather irrelevent
Question: How do companies use the PPF to their benefit in accordance to the products their competitors produce?
P2
ReplyDeleteThe PPF is not a straight line because that would require it to follow a linear pattern, whereas normally it is quadratic.
The PPF shows the many different quantities of two goods that an economy produces. A straight line means, for every unit relinquished, an additional unit of products can be produced, and it implies that the slope is constant. If the PPF is a curve, production is under increasing costs, and the slope of a PPF gives the trade off compared to the opportunity cost.
ReplyDeleteQuestion: What is the minimum and maximum amount of money that can be invested into a PPF?
The minimum amount of money that can be invested into a PPF is by using the least amount of money to get the required results. The maximum amount of money that can be invested into a PPF is by using all possible resources to achieve a desired result.
ReplyDeleteQuestion: What effect does natural resources getting more scarce have on a PPF?
This comment has been removed by the author.
ReplyDeleteSome of society’s productive labor resources would be going to waste.Analogously, in a fully efficient economy the available stock of manufactured capital resources (such as machinery) and natural capital resources (such as land and mineral deposits) will be used at optimal rates, so there is no unanticipated and undesired idle productive capacity. The existence of involuntarily idle labor and/or capital resources, which could be used to produce additional output, usually implies that an economy is operating at less than its potential.
DeleteQuestion: what productive activities lead to resource depletion or degradation?