Homework Answers
Country A will grow at a slower rate than country B. In short run economy must allocate its resources to produce capital goods rather than consumption goods. This leads to a reduction in standard of living in the short run due to diversion of resources from private consumption. But in the long run if there is an increase in the investment in capital goods then this will lead to more output of consumer goods to be produced. So there would be more increment in the standard of living than it would have been if the short term sacrifice was not made by the economy.
Therefore, the correct option is d.
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Exhibit 2-17 Production possibilities curve Consumption goods Capital goods In Exhibit 2-17, if countries A and...
Name: ID: A Exhibit 2-10 Production possibilities curve data Capital goods Consumption goods 23 19 13...
Name: ID: A Exhibit 2-10 Production possibilities curve data Capital goods Consumption goods 23 19 13 1 11. Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must because increase; the production possibility table shows only the maximum efficiency points increase; of the law of increasing costs decrease; of the law of increasing costs decrease; of the finite nature of...
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)
Exhibit 2-1 Production possibilities curv e data Consumption Goods Capital Goods 10 4 4 In Exhibit...
Exhibit 2-1 Production possibilities curv e data Consumption Goods Capital Goods 10 4 4 In Exhibit 2-1, why is the opportunity cost of producing the fourth unit of capital 4 units of consumption goods but ty cost of producing 4 units of capital is 10 units of consumption goods? Because the opportunity cost of capital goods is constant while the opportunity cost of consumption goods is g as this economy moves from more consumption goods to more capital goods. Because...
tion Completion Status: Jestion 2 Country A and Country B have the same production possibilities curve...
tion Completion Status: Jestion 2 Country A and Country B have the same production possibilities curve (PPC) as shown by the figure below and are both currently producing at point X 20 points х Capital Goods Consumption Goods a. Economists expect that the rate of economic growth of Country A will be higher than of Country B (holding other things constant. Do you agree? Explain why (8 marta) b. Now assume that Country A discovered new fields of natural gas...
Question 8 Exhibit 2-13 Production possibilities curve Consumption goods Capital goods In Exhibit 2-13, the combination...
Question 8 Exhibit 2-13 Production possibilities curve Consumption goods Capital goods In Exhibit 2-13, the combination of goods given by point H could: never be achieved by this economy be achieved today if the economy achieved full employment be achieved today if the economy achieved maximum efficiency. not be achieved today. be achieved today with the proper allocation of resources, A Moving to another question will save this response.
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...
Exhibit 2-16 Production possibilities curve Consumption goods 0 1 1TVO 2 3 4 5 6 7...
Exhibit 2-16 Production possibilities curve Consumption goods 0 1 1TVO 2 3 4 5 6 7 Capital goods 1. In Exhibit 2-16, which of the following points on the production possibilities curve are unattainable with the resources and technology currently available? a. B, C, D, U b. A, B, C, D, U c. E and W d. A, B, C, U e. A, B, C, D In Exhibit 2-16, which of the following points on the production possibilities curve are...
Suppose Country A produces few consumption goods and many investment goods, whereas Country B produces few...
Suppose Country A produces few consumption goods and many investment goods, whereas Country B produces few investment goods and many consumption goods. Other things being equal, what would you expect to happen? a. Per capita income will grow more rapidly in Country B. O b. Population will grow faster in Country B. O c. The production possibilities curve for Country A will shift out more rapidly than that of Country B. d. Assuming that both countries started with identical production...
1. When countries specialize in producing certain goods and then freely exchange those goods for other...
1. When countries specialize in producing certain goods and then freely exchange those goods for other goods with different countries, what is the advantage? a.) All people in each country will be better off than they would be if they did not trade. b.) Each country can consume at a point outside their production possibilities frontier. c.) Each country can produce and consume at a point outside their production possibilities frontier. d.) Each country can produce at a point outside...
Name: ID: A Exhibit 2-10 Production possibilities curve data Capital goods Consumption goods 23 19 13 1 11. Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must because increase; the production possibility table shows only the maximum efficiency points increase; of the law of increasing costs decrease; of the law of increasing costs decrease; of the finite nature of...
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)
Exhibit 2-1 Production possibilities curv e data Consumption Goods Capital Goods 10 4 4 In Exhibit 2-1, why is the opportunity cost of producing the fourth unit of capital 4 units of consumption goods but ty cost of producing 4 units of capital is 10 units of consumption goods? Because the opportunity cost of capital goods is constant while the opportunity cost of consumption goods is g as this economy moves from more consumption goods to more capital goods. Because...
tion Completion Status: Jestion 2 Country A and Country B have the same production possibilities curve (PPC) as shown by the figure below and are both currently producing at point X 20 points х Capital Goods Consumption Goods a. Economists expect that the rate of economic growth of Country A will be higher than of Country B (holding other things constant. Do you agree? Explain why (8 marta) b. Now assume that Country A discovered new fields of natural gas...
Question 8 Exhibit 2-13 Production possibilities curve Consumption goods Capital goods In Exhibit 2-13, the combination of goods given by point H could: never be achieved by this economy be achieved today if the economy achieved full employment be achieved today if the economy achieved maximum efficiency. not be achieved today. be achieved today with the proper allocation of resources, A Moving to another question will save this response.
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...
Exhibit 2-16 Production possibilities curve Consumption goods 0 1 1TVO 2 3 4 5 6 7 Capital goods 1. In Exhibit 2-16, which of the following points on the production possibilities curve are unattainable with the resources and technology currently available? a. B, C, D, U b. A, B, C, D, U c. E and W d. A, B, C, U e. A, B, C, D In Exhibit 2-16, which of the following points on the production possibilities curve are...
Suppose Country A produces few consumption goods and many investment goods, whereas Country B produces few investment goods and many consumption goods. Other things being equal, what would you expect to happen? a. Per capita income will grow more rapidly in Country B. O b. Population will grow faster in Country B. O c. The production possibilities curve for Country A will shift out more rapidly than that of Country B. d. Assuming that both countries started with identical production...
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