1. If a certain combination of goods or services lies outside the production possibilities curve of aneconomy, which of the following is true? ((A) Effective trade barriers have reduced foreign imports into the economy.(B) New technology is being used in production.(C)Resources are not available to achieve that combination of goods or services.(D)Resources are not being used efficiently to achieve that combination of goods orservices.(E) Resources are being used at a more rapid rate than they were in the past.2. According to the graph left, an increase in aggregate supplywill most likely cause income and employment to change inwhich of the following ways? (Aggregate SupplyAggregate DemandGROSS DOMESTIC PRODUCTIncomeEmployment(A) Decrease(B) Decrease(C) No change(D) Increase(E) IncreaseDecreaseIncreaseIncreaseDecreaseIncreasePRICE LEVEL

Production possibility curve shows the different combinations of two goods that can be produced with…

1. If a certain combination of goods or services lies outside the production possibilities c economy, which of the following is true? ( (A) Effective trade barriers have reduced foreign imports into the economy. (B) New technology is being used in production. (C)Resources are not available to achieve that combination of goods or services. (D)Resources are not being used efficiently to achieve that combination of goods

1. If a certain combination of goods or services lies outside the production possibilities c economy, which of the following is true? ( (A) Effective trade barriers have reduced foreign imports into the economy. (B) New technology is being used in production. (C)Resources are not available to achieve that combination of goods or services. (D)Resources are not being used efficiently to achieve that combination of goods

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Comparative advantage explains why people _____. Select one: a. work at the job they love and grow their own food . b. don't grow their own food anymore, but instead they specialize and trade. c. work at the job they love the most. (only) d. grow their own food and make their own clothes instead of shopping for these things. e. specialize in one thing and consumer it all.
Based on the previous description, is the trade-off Thailand faces between producing air fryers and pressure cookers best represented by Graph 1 or Graph 2? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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Figure 3: Two Production Possibilities Frontiers Britain United States 100 30 90 200 Assume the world consists hypothetically of only two countries that can produce only two products, in the same period, with the same fixed amount of resources, with the same highest technologies available worldwide, and with the simplified assumption of producing "along" a linear production possibility frontier (PPF). Figure 3 provides the production possibilities frontiers between Textiles (T) and Soybeans (S) in the United States (A) and Britain (B). Referring to Figure 3, which of the following is true according to David Ricardo's Comparative Advantage Theory? Only the United States can benefit from engaging in free international trade with Britain. Neither Britain nor the United States can benefit from engaging in free international trade. Both Britain and the United States can benefit from engaging in free international trade. None of the above.
1. Consider a market of two farmers which are also consumers. The following table contains the maximum production levels over a time period of 8 hours for both wheat and wine. As usual, we assume linear production possibility frontiers. Farmer Wheat Wine 10kg 15kg Albert 21 Berta 11 (a) Identify absolute advantages for each good. (b) Identify comparative advantage. (c) How does the comparative advantage change when calculated over 1 hour of production time? (d) How should Albert and Berta specialise? Who will trade what? (e) Given their production and consumption before trade, Production/Consumption WVheat Wine Albert 5kg 7.5kg 11 Berta 0.51 Assume production changes to the following . 1