Question

Please answer the following in a few sentences each.

1. Why is a production possibilities frontier typically drawn as a curve, rather than a straight line? Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.

2. During the Second World War, Germany’s factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germany’s production possibilities curve? How is a similar effect seen during a recession?

3. Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert.

4. Suppose, as an economist, you are asked to analyze an issue unlike anything you have ever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situation?

Answer 1

Hi,

As Chegg policies, I have only answered the first question. Since all the four questions are lengthy and require detailed explanation, it is not possible for me to answer each one, given that we have a time constraint.

Please rate the answer with a thumbs-up if you that the answer is correct and well-explained.

Thanks and Regards :)