Use the production possibilities frontier (PPF) to demonstrate economic growth. 1. With consumption goods on one...
Use the production possibilities frontier (PPF) to demonstrate economic growth. 1. With consumption goods on one axis and capital goods on the other, show how the combination of goods selected this period affects the PPF in the next period. 2. Extend this comparison by choosing a different point on this period’s PPF and determining whether that combination leads to more or less growth over the next period.
Homework Answers
Ans) PPC shows possible combination of two goods produced in an economy. An economic growth is shown by an outward shift of PPC.
Consumption goods satisfy present need but do not add much value to the future. The country which choses more of consumption good than capital good, shows less economic growth.
Capital goods are not consumed instantly in the present, they help further future development. And the country which choose more of capital goods, show more economic growth.
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Use the production possibilities frontier (PPF) to demonstrate
economic growth. 1. With consumption goods on one...
Figure 1: PPF Production Possibilities Frontier 0 0 Pizza Multiple Choice 1. Refer to the Production...
Figure 1: PPF Production Possibilities Frontier 0 0 Pizza Multiple Choice 1. Refer to the Production Possibilities Frontier (PPF) in Figure 1 on the next page. What is true about point A? (A) It is unattainable (B) Resources are being unused or misallocated (C) Capital exceeds labour in production (D) It is preferable to point B 2. Still referring to Figure 1, what is true about point B? (A) It represents diminishing and increasing opportunity cost (B) It is a...
Suppose Puerto Rico and Hawaii currently have the same production possibilities frontier. The PPF is for...
Suppose Puerto Rico and Hawaii currently have the same production possibilities frontier. The PPF is for hotels and consumption goods in the two areas. Hotels are a capital good that, once built, will help produce still more consumption goods. If Puerto Rico produces more hotels than Hawaii, A) Hawaii's PPF will shift outward further than Puerto Rico's PPF. B) Hawaii's PPF will shift inward. C) Puerto Rico's PPF will not shift. D) Puerto Rico's and Hawaii's PPF will shift outward...
The figure above shows a production possibilities frontier (PPF) for a society that makes two goods-pizza...
The figure above shows a production possibilities frontier (PPF) for a society that makes two goods-pizza and wings. For each point in the figure, select the correct button below to show whether the point represents an efficient use of resources, an inefficient use of resources, or is unattainable. Point A: Point B: Point C: Point D: Point F:
Scarcity, Choice, and Economic Systems Attempts: Keep the Highest: /1 5. Economic growth and PPES Aa...
Scarcity, Choice, and Economic Systems Attempts: Keep the Highest: /1 5. Economic growth and PPES Aa Aa a The blue (inner) curve on the following graph shows the current production possibilities frontier (PPF) for the economy of Econoland, and the red (outer) curve shows the PPF for Econoland next year if the economy were to operate at point B today. That is, investment choices today impact the growth of the economy, and thus the PPF for next year. CONSUMER GOODS...
Suppose the economy whose PPF is shown on the right experiences economic growth. 1.) Use the...
Suppose the economy whose PPF is shown on the right experiences economic growth. 1.) Use the 3-point curved line drawing tool to show how growth affects the trade-offs the country faces between producing ships and food. 2.) Use the point drawing tool to draw and label a point on the new PPF that shows the economy producing more of both goods. Label this point 'B' Carefully follow the instructions above and only draw the required objects. Which of the following...
Two countries, Alpha and Beta, have identical production possibilities frontiers. Capital goods (per person) If Alpha...
Two countries, Alpha and Beta, have identical production possibilities frontiers. Capital goods (per person) If Alpha produces at point A and Beta produces at point B, then _ O A. Alpha's and Beta's economic growth rates will be the same O B. Beta's future consumption will be less than than Alpha's O C. Alpha consumes more than Beta today, but it will grow slower than Beta OD. Alpha's economic growth rate will exceed Beta's PPF Consumption goods (per person)
Table 2.1 Production Possibilities Frontier for the United States Combination A B C D E F...
Table 2.1 Production Possibilities Frontier for the United States Combination A B C D E F G Vaccine doses (millions) Guns 10,000 19,000 24,000 28,000 30,000 31,000 17. According to the information in Table 2.1, what is the opportunity cost of producing the first one million vaccines? (a) 1,000 guns (b) 30,000 guns (e) 31,000 guns (d) one million vaccines (e) five million vaccines 19. In Table 2.1, opportunity costs (a) Increase as more vaccines are produced (b) A reconstanta...
1.Say an economy is producing on its production possibilities frontier (PPF) with a combination of 0...
1.Say an economy is producing on its production possibilities frontier (PPF) with a combination of 0 units of clothing and 100 units of food. This combination is an example of Select one: Neither productive efficiency or allocative efficiency Productive efficiency but probably not allocative efficiency Allocative efficiency but probably not productive efficiency Both productive efficiency and allocative efficiency 2. Consider a perfectly competitive firm with an average total cost (ATC) of $26 and an average variable cost (AVC) of $18....
Question 1 10 points Save Exhibit 2.10 Production possibilities curve data co E Capital goods Consumption...
Question 1 10 points Save Exhibit 2.10 Production possibilities curve data co E Capital goods Consumption goods Suppose an economy is faced with the production possibilities table shown in Exhibit 2.10. If this economy chooses the combination of goods at point A only capital goods are being produced every resource in the economy is utilized in the production of capital goods no capital goods are being used as factors of production every resource in the economy is being used in...
A country's consumption possibilities frontier can be outside its production possibilities frontier if a
1. A country's consumption possibilities frontier can be outside its production possibilities frontier if a. the country engages in trade. b. the citizens of the country have a greater desire to consume goods and services than do the citizens of other countries. c. the country’s technology is superior to the technologies of other countries.d. All of the above are correct. 2. A production possibilities frontier will be a straight line if a. increasing the production of one good by x...
Figure 1: PPF Production Possibilities Frontier 0 0 Pizza Multiple Choice 1. Refer to the Production Possibilities Frontier (PPF) in Figure 1 on the next page. What is true about point A? (A) It is unattainable (B) Resources are being unused or misallocated (C) Capital exceeds labour in production (D) It is preferable to point B 2. Still referring to Figure 1, what is true about point B? (A) It represents diminishing and increasing opportunity cost (B) It is a...
The figure above shows a production possibilities frontier (PPF) for a society that makes two goods-pizza and wings. For each point in the figure, select the correct button below to show whether the point represents an efficient use of resources, an inefficient use of resources, or is unattainable. Point A: Point B: Point C: Point D: Point F:
Scarcity, Choice, and Economic Systems Attempts: Keep the Highest: /1 5. Economic growth and PPES Aa Aa a The blue (inner) curve on the following graph shows the current production possibilities frontier (PPF) for the economy of Econoland, and the red (outer) curve shows the PPF for Econoland next year if the economy were to operate at point B today. That is, investment choices today impact the growth of the economy, and thus the PPF for next year. CONSUMER GOODS...
Suppose the economy whose PPF is shown on the right experiences economic growth. 1.) Use the 3-point curved line drawing tool to show how growth affects the trade-offs the country faces between producing ships and food. 2.) Use the point drawing tool to draw and label a point on the new PPF that shows the economy producing more of both goods. Label this point 'B' Carefully follow the instructions above and only draw the required objects. Which of the following...
Two countries, Alpha and Beta, have identical production possibilities frontiers. Capital goods (per person) If Alpha produces at point A and Beta produces at point B, then _ O A. Alpha's and Beta's economic growth rates will be the same O B. Beta's future consumption will be less than than Alpha's O C. Alpha consumes more than Beta today, but it will grow slower than Beta OD. Alpha's economic growth rate will exceed Beta's PPF Consumption goods (per person)
Table 2.1 Production Possibilities Frontier for the United States Combination A B C D E F G Vaccine doses (millions) Guns 10,000 19,000 24,000 28,000 30,000 31,000 17. According to the information in Table 2.1, what is the opportunity cost of producing the first one million vaccines? (a) 1,000 guns (b) 30,000 guns (e) 31,000 guns (d) one million vaccines (e) five million vaccines 19. In Table 2.1, opportunity costs (a) Increase as more vaccines are produced (b) A reconstanta...
Question 1 10 points Save Exhibit 2.10 Production possibilities curve data co E Capital goods Consumption goods Suppose an economy is faced with the production possibilities table shown in Exhibit 2.10. If this economy chooses the combination of goods at point A only capital goods are being produced every resource in the economy is utilized in the production of capital goods no capital goods are being used as factors of production every resource in the economy is being used in...
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