Provide for a production possibilities analysis, a numerical example as a model to capture, in an efficiently run economy, the concepts of scarcity and specialization
Provide for a production possibilities analysis, a numerical example as a model to capture, in an...
The production possibilities frontier A. is a model that assumes there is no scarcity and no opportunity cost. B. depicts the boundary between those combinations of goods and services that can be produced and those that cannot given resources and the current state of technology. C. shows how many goods and services are consumed by each person in a country. D. is a graph with price on the vertical axis and income on the horizontal axis.
If an economy is operating inside its production possibilities frontier: A) it is producing efficiently. The economy cannot produce more of one good without simultaneously reducing the output of another good. B) is producing inefficiently. If production was arranged more efficiently the economy can produce more on one good without sacrificing any production of another good. C) it is producing at an unattainable point. You cannot be inside the Production Possibilities Frontier. D) then opportunity cost approaches infinity. No economy...
Assignment (1) What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society. What economic concepts are represented in the production possibilities model? 1. 2.
Illustrate three of the following concepts using properly drawn and labeled production possibilities frontier graphs. Use a separate ppf graph for each concept you select. 1. scarcity and trade-offs 2. unemployment 3. opportunity cost 4. economic growth
Economic growth (shifting of the production possibilities frontier) can occur (pick all the correct answers) - by improving the level of technology and skills in th economy - by increasing prices in the economy - by using resources efficiently - increasing the amount of resources (ex labor) in the economy
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...
urgent please
Production Possibilities Analysis The table below is a set of hypothetical production possibilities for a nation. . Automobiles Beef Combination (thousands) (thousands of tons) 10 4 0 9-4 10 a. Plot these production possibilities data. What is. the opportunity cost of the first 2,000 automobiles produced? Between which points is the oppor- tunity cost per thousand automobiles highest? Between which points is the opportunity cost per thousand tons of beef highest? b. Label a point P inside the...
If the economy is currently producing at a point inside its Production Possibilities Frontier O alternate products must be sacrificed in order for production to increase. O technology must improve in order for production to increase. O human capital must improve in order to production to increase. O more resources must be discovered in order for production to increase. O production can increase if resources are used more efficiently.
#12. Suppose that, on the basis of a nations production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9000 pizzas. Relate this information to the following statement; Through international specialization and trade, a nation can reduce its opportunity cost of obtaining good and thus 'move outside its production possibility curve."
13. What assumption(s) in the production possibilities model may lead the model to overstate the gains from trade and cause the actual gains to be less than predicted by the model? The assumption that there is only a two good economy. In reality the economy is much more complex, so the gains from trade will in fact be larger than what the model predicts. The assumption that individuals will consume all that is produced. This leads the model to overstate...