An economy uses only labor as input to produce two goods, A and B. If its...
An economy uses only labor as input to produce two goods, A and B. If its production possibilities frontier (PPF) of two goods is a negative-sloped straight line, what is the implication in opportunity costs? Will the law of increasing costs still hold? Please state briefly.
Homework Answers
A country has a straight line PPF means it's resources are completely adaptable to alternative uses, that is, cost of producing an additional unit of a good in terms of another, is always constant. So, this country has a constant opportunity cost. Law of increasing opportunity cost doesn't hold here, because the economy doesn't have to give up more and more of one product to produce additional unit of the other. The straight line PPF always means a constant opportunity cost.
Add Answer to:
An economy uses only labor as input to produce two goods, A and
B. If its...
1. What will be the impact of the trade war with China in 2019 (i.e. imposed...
1. What will be the impact of the trade war with China in 2019 (i.e. imposed a 25% tariff on imports each other) on the U.S. real GDP in your opinion? Please state both the short-run and long-run impacts briefly. Providing a reference link (URL) to an article that supports your opinion is a plus. 2. An economy uses only labor as input to produce two goods, A and B. If its production possibilities frontier (PPF) of two goods is...
HW.A:3.1: Chapter 3 - Aplia Homework 1. Specialization and production possibilities Suppose Spain produces only smartphones...
HW.A:3.1: Chapter 3 - Aplia Homework .1. Specialization and production possibilities Suppose Spain produces only smartphones and tablets. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally useful in producing both tablets and smartphones The shape of Spain's production possibilities frontier (PPF) should reflect the fact that as Spain produces more tablets and fewer smartphones, the opportunity cost of producing each additional tablet a- Decrease b- increase The following graphs...
23. Given the following Classical-type table showing the number of days of labor input required to...
23. Given the following Classical-type table showing the number of days of labor input required to obtain one unit of output of each of the two commodities in each of the two countries: computers 3 days 6 days bicycles 7 days 5 days absolute advantage in the production of United States United Kingdom The United States has an A) computers (only) B) bicycles (only) C) both bicycles and computers D) neither bicycles computers nor 24. The absence of trade is...
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...
Suppose (for simplicity) that the U.S. economy uses one resource – labor – to produce two...
Suppose (for simplicity) that the U.S. economy uses one resource
– labor – to produce two goods: soybeans and health
care. The U.S. has 100 million workers at
first. Each worker can produce either 10 bushels of
soybeans or 2 units of health care each day.
On the graph below, draw the nation’s production
possibilities frontier
Suppose the U.S. produces a total of 800 million bushels
of soybeans per day.
If the U.S. produces 800 million bushels of soybeans, how many
units...
1. Specialization and production possibilities Suppose Bulgaria produces only tablets and smartphones. The resources that are...
1. Specialization and production possibilities Suppose Bulgaria produces only tablets and smartphones. The resources that are used in the production of these two goods are not specialized--that is, the same set of resources is equally useful in producing both smartphones and tablets The shape of Bulgaria's production possibilities frontier (PPF) should reflect the fact that as Bulgaria produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone The following graphs show two possible PPFs for Bulgaria's...
5. Suppose an economy can produce two goods, A and B. It is now operating at...
5. Suppose an economy can produce two goods, A and B. It is now operating at point E on production possibilities curve RT. An improvement in the technology available to produce good A shifts the curve to ST, and the economy selects point E'. How does this change affect the opportunity cost of producing an additional unit of good B?
Suppose that the economy of El Paso creates only cowboy boots and pecans. The production possibilities...
Suppose that the economy of El Paso creates only cowboy boots and pecans. The production possibilities frontier (PPF) per year for El Paso is illustrated in the graph and is currently producing at the point labeled A. Move point B to show the economy efficiently producing one thousand more cowboy boots. Now, determine the opportunity cost of producing an additional 1000 cowboy boots (i.e., shifting from point A to point B). Enter your answer specified to one decimal place. 5,000...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only one factor of production, Labor. In England, one unit of labor can produce 2 units of wine or 1 unit of cheese. In Portugal, one unit of labor can produce 3 units of wine or 1/2 of cheese. There are 100 units of labor in Portugal, and 100 in England. Countries share the same tastes, and there is perfect competition. 1) Fill in the...
A small country produces only two goods, cars and computers. Given its limited resources, this country...
A small country produces only two goods, cars and computers. Given its limited resources, this country has the following production possibilities: Cars Computers 0 200 25 180 50 130 75 70 100 0 Draw the PPF. Suppose car production uses mainly machines (capital) and computer production uses mainly labor. Show what happens to the PPF when the amount of capital increases but labor remains unchanged.
HW.A:3.1: Chapter 3 - Aplia Homework .1. Specialization and production possibilities Suppose Spain produces only smartphones and tablets. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally useful in producing both tablets and smartphones The shape of Spain's production possibilities frontier (PPF) should reflect the fact that as Spain produces more tablets and fewer smartphones, the opportunity cost of producing each additional tablet a- Decrease b- increase The following graphs...
23. Given the following Classical-type table showing the number of days of labor input required to obtain one unit of output of each of the two commodities in each of the two countries: computers 3 days 6 days bicycles 7 days 5 days absolute advantage in the production of United States United Kingdom The United States has an A) computers (only) B) bicycles (only) C) both bicycles and computers D) neither bicycles computers nor 24. The absence of trade is...
Suppose (for simplicity) that the U.S. economy uses one resource
– labor – to produce two goods: soybeans and health
care. The U.S. has 100 million workers at
first. Each worker can produce either 10 bushels of
soybeans or 2 units of health care each day.
On the graph below, draw the nation’s production
possibilities frontier
Suppose the U.S. produces a total of 800 million bushels
of soybeans per day.
If the U.S. produces 800 million bushels of soybeans, how many
units...
1. Specialization and production possibilities Suppose Bulgaria produces only tablets and smartphones. The resources that are used in the production of these two goods are not specialized--that is, the same set of resources is equally useful in producing both smartphones and tablets The shape of Bulgaria's production possibilities frontier (PPF) should reflect the fact that as Bulgaria produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone The following graphs show two possible PPFs for Bulgaria's...
5. Suppose an economy can produce two goods, A and B. It is now operating at point E on production possibilities curve RT. An improvement in the technology available to produce good A shifts the curve to ST, and the economy selects point E'. How does this change affect the opportunity cost of producing an additional unit of good B?
Suppose that the economy of El Paso creates only cowboy boots and pecans. The production possibilities frontier (PPF) per year for El Paso is illustrated in the graph and is currently producing at the point labeled A. Move point B to show the economy efficiently producing one thousand more cowboy boots. Now, determine the opportunity cost of producing an additional 1000 cowboy boots (i.e., shifting from point A to point B). Enter your answer specified to one decimal place. 5,000...
Most questions answered within 3 hours.
-
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 26 minutes ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 1 hour ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 1 hour ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 1 hour ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 2 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 2 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 2 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 2 hours ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 2 hours ago -
Why are polymers not typically casted into products?
asked 3 hours ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 3 hours ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 3 hours ago