This is the equation for Mexico’s Production Possibility Frontier (PPF): 60=3F+2C 1. Plot the Production Possibility...
This is the equation for Mexico’s Production Possibility Frontier (PPF): 60=3F+2C
1. Plot the Production Possibility Frontier for Mexico
2. What is the opportunity cost of producing food in Mexico?
3. What is the opportunity cost of producing clothing in Mexico?
4. Now, use the information from USA’s Production Possibility Frontier as discussed in class. Relative to USA, what does Mexico have a comparative advantage in? In other words if Mexico were to trade with the USA, what should it specialize in? (USA’s PPF is as discussed in class is given by 50=F+2C)
5. Which products does Mexico have an absolute advantage in? How about USA?
Hints: For Q1: Solve for C when F=0, solve for F when C=0 For Q2: Use the slope method. Alternatively, solve for C when F=0 and then when F=1. How much does C drop by? This is opportunity cost for producing one unit of food. For Q3: Use the slope method. Alternatively, solve for F when C=0 and then when C=1. How much does F drop by? This is the opportunity cost for producing one unit of clothing.
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This is the equation for Mexico’s Production Possibility
Frontier (PPF): 60=3F+2C
1. Plot the Production Possibility...
(20 Marks) QUESTION With the aid of a fully labelled diagram, draw a Production Possibility Frontier (PPF) for an econo...
(20 Marks) QUESTION With the aid of a fully labelled diagram, draw a Production Possibility Frontier (PPF) for an economy producing computers and pizzas. Use the diagram to explain the concepts of choice, scarcity and opportunity costs. (10 marks) 4.1 2 With reference to the diagram in question 4.1, distinguish between 'efficiency' and 'inefficiency. (4 marks) With the aid of a separate diagram, illustrate and explain what would happen if there was a discovery of an improved technique for producing...
Ob 23 NE ww Marked out of 00 Gestion Production Possibility Related Question Use following Table...
Ob 23 NE ww Marked out of 00 Gestion Production Possibility Related Question Use following Table to answer to following questions. Table shows possible productions ot to goods: Food and Clothing, using all wailable resources Table 1 Different combinations of Productions of Food and Clothing item B e D E Food Milos) 0 5 9 12 14 Clothing (maten 40 30 20 10 0 What is the opportunity cost of producing 14 units of food in terms of clothing? b....
The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and...
The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and coal. The black points (cross symbols) represent three possible output levels in a given month. (Hint: You can click on the points to see their exact coordinates.) Refer to the following graph to answer the questions that follow. 32 28 24 PPF 20 + B CLOTHING (Millions of garments) 16 + 12 4 0 0 100 200 600 700 800 300 400 500 COAL...
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...
34 pounds of fruit. Question 12 1 pts Consider a production possibility frontier with jeans on...
34 pounds of fruit. Question 12 1 pts Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis. As a country moves along the frontier closer to the vertical axis, the opportunity cost of producing jeans increases. c) the opportunity cost of producing shoes increases. there are fewer tradeoffs. the opportunity cost of producing jeans decreases.
3. Suppose an economy has a production possibility frontier characterized by the equation x2+4Y2 100 a....
3. Suppose an economy has a production possibility frontier characterized by the equation x2+4Y2 100 a. In order to sketch this equation, first compute its intercepts. What is the value b. Calculate three additional points along this production possibility frontier. c. Is the opportunity cost of X in terms of Y constant in this economy, or does it d. How would you calculate the opportunity cost of X in terms of Y in this of Xif Y-0? What is the...
1. International trade... a. Shifts a country's production possibility frontier outwards b. Shifts a country's production...
1. International trade... a. Shifts a country's production possibility frontier outwards b. Shifts a country's production possibility frontier inwards c. Moves production within a country's production possibility frontier d. Enables a country to consume outside of its production possibility frontier 2. A customs union... a. Allows members to determine their own trade policies with each other b. Allows members to determine their own trade policies with non-member countries c. Has free trade among member countries but common trade policies with...
The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and...
The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and steel. The black points symbols) represent three possible output levels in a given month. You can click on the points to see their exact coordinates Graph 1 32 28 24 PF 16 100 200 300 400 500 600 700 800 STEEL (Millions of tons) Suppose the economy initially produces 12,000 garments of clothing and 500 million tons of steel, which is represented by point...
Please answer both questions, with an explanation Suppose the given production possibilities frontier (PPF) graph shows...
Please answer both questions, with an explanation
Suppose the given production possibilities frontier (PPF) graph shows the fictitious country of Ruritania currently producing at the point labeled Start. If a decision is reached to provide more public goods, to which point will Ruritania move? O D O c O B Start С What is the opportunity cost of that decision? O There is no opportunity cost since the economy is still producing on the PPF. Public goods The private goods...
a) Draw a production possibility frontier for blue jeans and computers that illustrates the law of...
a) Draw a production possibility frontier for blue jeans and computers that illustrates the law of increasing opportunity cost. b) Clearly explain how you know that your graph follows the law of increasing opportunity cost. c) Suppose a new technology for producing blue jeans is developed that allows more blue jeans to be produced with the same amount of resources as before. Show this change on your diagram. Explain what happens to the opportunity cost of producing computers and why
(20 Marks) QUESTION With the aid of a fully labelled diagram, draw a Production Possibility Frontier (PPF) for an economy producing computers and pizzas. Use the diagram to explain the concepts of choice, scarcity and opportunity costs. (10 marks) 4.1 2 With reference to the diagram in question 4.1, distinguish between 'efficiency' and 'inefficiency. (4 marks) With the aid of a separate diagram, illustrate and explain what would happen if there was a discovery of an improved technique for producing...
Ob 23 NE ww Marked out of 00 Gestion Production Possibility Related Question Use following Table to answer to following questions. Table shows possible productions ot to goods: Food and Clothing, using all wailable resources Table 1 Different combinations of Productions of Food and Clothing item B e D E Food Milos) 0 5 9 12 14 Clothing (maten 40 30 20 10 0 What is the opportunity cost of producing 14 units of food in terms of clothing? b....
The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and coal. The black points (cross symbols) represent three possible output levels in a given month. (Hint: You can click on the points to see their exact coordinates.) Refer to the following graph to answer the questions that follow. 32 28 24 PPF 20 + B CLOTHING (Millions of garments) 16 + 12 4 0 0 100 200 600 700 800 300 400 500 COAL...
34 pounds of fruit. Question 12 1 pts Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis. As a country moves along the frontier closer to the vertical axis, the opportunity cost of producing jeans increases. c) the opportunity cost of producing shoes increases. there are fewer tradeoffs. the opportunity cost of producing jeans decreases.
3. Suppose an economy has a production possibility frontier characterized by the equation x2+4Y2 100 a. In order to sketch this equation, first compute its intercepts. What is the value b. Calculate three additional points along this production possibility frontier. c. Is the opportunity cost of X in terms of Y constant in this economy, or does it d. How would you calculate the opportunity cost of X in terms of Y in this of Xif Y-0? What is the...
The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and steel. The black points symbols) represent three possible output levels in a given month. You can click on the points to see their exact coordinates Graph 1 32 28 24 PF 16 100 200 300 400 500 600 700 800 STEEL (Millions of tons) Suppose the economy initially produces 12,000 garments of clothing and 500 million tons of steel, which is represented by point...
Please answer both questions, with an explanation
Suppose the given production possibilities frontier (PPF) graph shows the fictitious country of Ruritania currently producing at the point labeled Start. If a decision is reached to provide more public goods, to which point will Ruritania move? O D O c O B Start С What is the opportunity cost of that decision? O There is no opportunity cost since the economy is still producing on the PPF. Public goods The private goods...
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