Homework Answers
Ans-(d) the more resources the economy uses to produce one good , the fewer resources it has available to produce the other good.
PPF is bowed outward because of increasing marginal opportunity cost. Production of one more unit of good means less of other.
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In the case of a bowing outward Production Possibility Frontier an economy is interdependent and engaged...
The table above shows a production possibilities frontier for an economy. If the economy tried to...
The table above shows a production possibilities frontier for an
economy. If the economy tried to produce a combination of 250
loaves of bread and 800 books,
A.it is enjoying a free lunch.
B.there is some unemployment.
C.there is full employment.
D.the tradeoff between bread and books is inefficient.
E.it cannot produce this combination because it lacks enough
resources or technology.
Bread books Possibility (number) (number) 1,000 900 700 400 A. 100 200 300 400
A production possibility frontier is made up from all of the combinations of two goods or...
A production possibility frontier is made up from all of the combinations of two goods or services that can be efficiently produced with the currently available resources and technology. True or False The PPF is curved (bowed) outward from the origin because resources are limited. True or False The slope of the PPF (in absolute value) shows the opportunity cost as production is switched from one good or service to another. True or False One can calculate the opportunity cost...
9. Suppose that an economy is currently producing at a point inside its PPF. We know...
9. Suppose that an economy is currently producing at a point inside its PPF. We know that: a. The economy is producing beyond its capacity, so inflation will occur b. The economy is not using all of its available resources c. The economy is producing an efficient combination of goods d. There will be a large opportunity cost if the economy tries to increase production of any good _____ 10. Production possibility frontiers are usually shown as bowed outward. This...
An economy has a production possibility frontier given by X2 + 4Y2 = 100. (i) Graph...
An economy has a production possibility frontier given by X2 + 4Y2 = 100. (i) Graph this ppf. (ii) Calculate the opportunity cost of an extra unit of good X when a. X = 2 b. X = 8. [Hint: you need ΔY/ΔX; either use calculus; or calculate Y when X=2 and X=3 to get an approximation. Excel might be helpful for this.] (iii) If consumers want to consume equal amounts of X and Y, how much of each should...
Suppose an economy E has a production possibility frontier characterized by the following equation: Y = - X 2 + 400 a. D...
Suppose an economy E has a production possibility frontier characterized by the following equation: Y = - X 2 + 400 a. Draw the PPF b. Calculate 3 opportunity costs between 4 different points on the PPF, is it constant, or does it depend on the levels of output produced? c. Where does the point A = (10, 250) fall? Explain what it means. Where does the point B = (15, 200) fall? Explain what it means. Where should we...
46) A shift outwards of the nation's production possibilities frontier can occur due to: 46) A)...
46) A shift outwards of the nation's production possibilities frontier can occur due to: 46) A) a change in the amounts of one good desired. B) an increase in the labor force C) a natural disaster like a hurricane or bad earthquake D) a reduction in unemployment. 48) If a nation's production possibilities frontier moves outward, this represents: A) economic growth. B) an impossible situation. C) rising prices of the two goods on the production possibilities frontier model. D) a...
Scenario Bananas and Corn: The graphs below show separately, England's and Honduras' production possibility frontier when...
Scenario Bananas and Corn: The graphs below show separately, England's and Honduras' production possibility frontier when producing only two goods, bananas and corn, given the same available resources. England Honduras Com Com Bananas Bananas 3. The opportunity cost of a unit of bananas is al unit of corn for England and 2 units of corn for Honduras bl 4 units of corn for England and 1/2 unit of corn for Honduras al 4 units of corn in England and 12...
Juwe OP answers the question 1. Macroeconomists study a. the decisions of individual households and firms....
Juwe OP answers the question 1. Macroeconomists study a. the decisions of individual households and firms. b. the interaction between households and firms. c. economy-wide phenomena. d. regulations imposed on firms and unions. 2. Production possibilities frontiers are usually bowed outward. This is because a. the more resources a society uses to produce one good, the fewer resources it has available to produce another good. b. the opportunity cost of producing a good decreases as more and more of that...
QUESTION 1 A macroeconomist- as opposed to a microeconomist -might study O 1. the effect of...
QUESTION 1 A macroeconomist- as opposed to a microeconomist -might study O 1. the effect of an increasing inflation rate on national living standards O 2 the effect on U.S. steel producers of an import quota imposed on foreign steel O 3.the effect of an increase in the price of imported coffee beans on the U.S. coffee industry O 4. the effect of agricultural price support programs on the cotton industry QUESTION 2 If an economy is producing efficiently, then...
5. Assume that the economy of Fruitland can produce two goods, apples (A) and bananas (B)....
5. Assume that the economy of Fruitland can produce two goods, apples (A) and bananas (B). The production of one apple requires one unit of labor (L) and two units of capital (K). One banana requires two units of labor and one unit of capital. Fruitland is endowed with 600 units of labor and 600 units of capital. a. Draw the production possibilities frontier (curve) for Fruitland. Put apples (A) on the vertical axis. (HINT: For every 20 apples, determine...
The table above shows a production possibilities frontier for an
economy. If the economy tried to produce a combination of 250
loaves of bread and 800 books,
A.it is enjoying a free lunch.
B.there is some unemployment.
C.there is full employment.
D.the tradeoff between bread and books is inefficient.
E.it cannot produce this combination because it lacks enough
resources or technology.
Bread books Possibility (number) (number) 1,000 900 700 400 A. 100 200 300 400
46) A shift outwards of the nation's production possibilities frontier can occur due to: 46) A) a change in the amounts of one good desired. B) an increase in the labor force C) a natural disaster like a hurricane or bad earthquake D) a reduction in unemployment. 48) If a nation's production possibilities frontier moves outward, this represents: A) economic growth. B) an impossible situation. C) rising prices of the two goods on the production possibilities frontier model. D) a...
Scenario Bananas and Corn: The graphs below show separately, England's and Honduras' production possibility frontier when producing only two goods, bananas and corn, given the same available resources. England Honduras Com Com Bananas Bananas 3. The opportunity cost of a unit of bananas is al unit of corn for England and 2 units of corn for Honduras bl 4 units of corn for England and 1/2 unit of corn for Honduras al 4 units of corn in England and 12...
Juwe OP answers the question 1. Macroeconomists study a. the decisions of individual households and firms. b. the interaction between households and firms. c. economy-wide phenomena. d. regulations imposed on firms and unions. 2. Production possibilities frontiers are usually bowed outward. This is because a. the more resources a society uses to produce one good, the fewer resources it has available to produce another good. b. the opportunity cost of producing a good decreases as more and more of that...
QUESTION 1 A macroeconomist- as opposed to a microeconomist -might study O 1. the effect of an increasing inflation rate on national living standards O 2 the effect on U.S. steel producers of an import quota imposed on foreign steel O 3.the effect of an increase in the price of imported coffee beans on the U.S. coffee industry O 4. the effect of agricultural price support programs on the cotton industry QUESTION 2 If an economy is producing efficiently, then...
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