1. Improvements in technology.2. Increases in the supply (stock) of capital goods3. Purchases of expanding output.4. Obtaining the optimal combination of goods, each at least-cost production.5. Increases in the quantity and quality of natural resources.6. Increases in the quantity and quality of human resources.Multiple ChoiceWhich set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on itsproduction possibilities curve?O12.5, and 6 onlyHelp3 and 4 onlySave & Exit 1.2.5, and 6 only3 and 4 only3 only1,3, and 4 only

A production possibility curve (PPC) shows the maximum possible output combinations of two goods or…

1. Improvements in technology. 2. Increases in the supply (stock) of capital goods. 3. Purchases of expanding output 4. Obtaining the optimal combination of goods, each at least-cost production 5. Increases in the quantity and quality of natural resources. 6. Increases in the quantity and quality of human resources. Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve? Multiple Choice 1.2.5, and 6 only 3 and 4 only

1. Improvements in technology. 2. Increases in the supply (stock) of capital goods. 3. Purchases of expanding output 4. Obtaining the optimal combination of goods, each at least-cost production 5. Increases in the quantity and quality of natural resources. 6. Increases in the quantity and quality of human resources. Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve? Multiple Choice 1.2.5, and 6 only 3 and 4 only

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.

Question

1. Improvements in technology.
2. Increases in the supply (stock) of capital goods
3. Purchases of expanding output.
4. Obtaining the optimal combination of goods, each at least-cost production.
5. Increases in the quantity and quality of natural resources.
6. Increases in the quantity and quality of human resources.
Multiple Choice
Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its
production possibilities curve?
O
12.5, and 6 only
Help
3 and 4 only
Save & Exit

1.2.5, and 6 only
3 and 4 only
3 only
1,3, and 4 only

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Any point on a country's production possibilities curve represents a combination of two goods that an economy will never be able to produce. can produce using all available resources and technology. can produce using some portion, but not all, of its resources and technology. may be able to produce in the future with more resources and/or technology.
M7
When economic growth occurs, the production possibilities frontier shifts outward but no longer limits the amount that can be produced. economy moves along its production possibilities frontier. production possibilities frontier shifts outward. production possibilities frontier becomes steeper.
FIGURE 2-10 Wheat (bushels) Apples (bushels) 0 Refer to Figure 2-10. What movement along the production possibilities curve best illustrates the notion "To get more apples, we have to give up wheat"? 4 a movement from Point A to Point E a movement from Point E to Point C a movement from Point A to Point D a movement from Point B to Point E
Amanda and Raj are both students working part-time at an insurance company. Amanda can work only 5 hours a day. Her manager informs her that she needs to review 250 documents and process 250 insurance claims in the next 10 days. Amanda can either review 30 documents in 1 hour or process 5 insurance claims. 1.) Using the line drawing tool, draw a production possibilities curve for Amanda that represents a day of work. Label your curve 'Amanda.' Carefully follow the instructions above and only draw the required object. The slope of the curve is. (Round your response to two decimal places.) Her opportunity cost of reviewing one document is claim(s). (Round your response to two decimal places.) Number of claims per day 30- 15- Production Possibilities Curve 0+ 0 15 30 45 60 75 90 105120135150165180195210225 Number of documents per day ANSELMECESSARAS
If society begins by producing 3 units of X and 4 units of Y and then alters production so that it is now producing 4 units of X and 4 units of Y, and we know that the quantity and quality of resources were unchanged and that technology did not change, then: A) 3 units of X and 4 units of Y are a combination best represented by a point outside the production possibilities curve. B) resources were being efficiently utilized at 3 units of X and 4 units of Y. C) society has moved along the production possibilities curve. D) resources were being fully utilized at 3 units of X and 4 units of Y. E) 3 units of X and 4 units of Y are a combination best represented by a point inside the production possibilities curve.
4. Shifts in production possibilities Suppose the United Kingdom produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for barley, an agricultural good, and cars, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of an immigration law that results in fewer workers entering the country. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. ? CARS (Thousands) 300 250 200 150 100 50 0 0 80 PPF 160 240 320 BARLEY (Millions of bushels) 400 480 6 PPF
Suppose that the US economy produces agricultural products (A) and manufactured products (M). Explain and graphically illustrate the impact of each of the following events on the economy’s production possibilities curve (draw a new PPF for each, placing M on the vertical axis). a. Scientists develop a new fertilizer that will increase the productivity of land on which agricultural products are grown. b. The price of manufactured goods increases. c. Russian attacks on Ukraine devastate the Ukrainian wheat crop, increasing their demand for American wheat. d. The government increases taxes on manufactured goods.
Use the following table to answer the question below. Alexandra’s Production Possibilities Schedule Natalia’s Production Possibilities Schedule Number of Scarves Knitted per Day Number of Sweaters Knitted per Day Number of Scarves Knitted per Day Number of Sweaters Knitted per Day 0 4 0 4 3 3 2 3 6 2 4 2 9 1 6 1 12 0 8 0 Which of the following is an acceptable term of trade? Multiple Choice 2 sweaters for 7 scarves 4 sweaters for 10 scarves 8 sweaters for 15 scarves 6 sweaters for 10 scarves
The production possibilities curve illustrates the basic principle that: Question 70 options: an economy automatically seeks that level of output that employs all of its resources any production point below the curve reflects high opportunity cost the production of more of any one item will in time require smaller and smaller sacrifices of other items if all the resources of an economy are fully used, more of one item could be produced only if less of another item is produced any production point above the curve reflects low opportunity cost
Evidence accumulates that the use of fertilizers, which increases agricultural production greatly, damages water quality. In what way would the production possibilities curve reflect scarcity, choice and opportunity cost?
Consider the graph. Suppose the economy is currently at a point E on the production possibilities curve producing a units of services and b units of goods. After technological development raises the maximum amount of goods that can be produced by the economy, the economy moves to point E', producing a' and b' units of services and goods respectively. Which of the following situation is possible? Select all that apply. a. At E', a' = a and b' > b b. At E', a' > a and b' = b c. At E', a' > a and b' > b d. At E', a' < a and b' > b e. At E', a' < a and b' < b