1. The production possibilities curve represents: (select only one option) A. The production constraints faced by a certain economy given its resource endowments. B. The amount of output resulting from a given combination of inputs. C. All of the above are correct (A & B). D. The budget constraints of the agents of a given economy. E. The preferences of a certain economy given its resource endowments.

1. The production possibilities curve represents: (select only one option) A. The production constraints faced by a certain economy given its resource endowments. B. The amount of output resulting from a given combination of inputs. C. All of the above are correct (A & B). D. The budget constraints of the agents of a given economy. E. The preferences of a certain economy given its resource endowments.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question 3 Person 1 can allocate her 8-hour day between the production of two goods A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units. (a) State whether 9 units of Good B and 12 units of Good A are attainable, unattainable, efficient or inefficient /State all that applies] Select one or more attainable unattainable efficient inefficient II
Mid- sem 1. Assume that the schedule below describes the production possibilities confronting an economy. Using the information from the table? (a) Draw the production possibilities curve .be sure to label each alternative output combination (A through B) (b) Calculate and illustrate on your graph the opportunity cost of producing one CD player per week? (c) What is the cost of producing a second CD player? What might account for the differences? (d) Which point on the curve is the most desired one? How will we find out? Potential weekly pianos CD players Output combinations A 10 9 1 C 7 2 4 3 E 4 Q2: if taxes on the rich were raise to provide housing for the poor, how would the willingness to work be affected? What would happened to total output? Q3: Ghana currently allocated four (4) percent of our resources to military output. Is this too much or too little, how can we decide? Q4: Utility companies routinely ask state commissions for permission to raise utility rates. What does this…
Mid- sem 1. Assume that the schedule below describes the production possibilities confronting an economy. Using the information from the table? (a) Draw the production possibilities curve .be sure to label each alternative output combination (A through B) (b) Calculate and illustrate on your graph the opportunity cost of producing one CD player per week? (c) What is the cost of producing a second CD player? What might account for the differences? (d) Which point on the curve is the most desired one? How will we find out? Potential weekly pianos CD players Output combinations A 10 9 1 C 7 2 4 3 E 4
1. Below is the production possibilities table for consumer goods (washing machine) and capital goods (tractor): Type of Production Production Possibilities A B C D E Washing Machine 0 4 8 12 16 Tractor 60 54 42 24 0 a) Show these data graphically. b) If the economy is at point B, what is the cost of one more washing machine? What is the cost of one more tractor? c)Explain how the production possibilities frontier reflects the law of increasing opportunity costs.
13. Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
Unit 4 Question 1 The production possibility frontier of an economy is as shown in Figure 1. (a) () If the economy produces 15 units of manufoctured goods, whot is the maximum number of non-manufactured goods it can produce? (in) How many manufoctured goods could it produce if production of non-manufoctured goods was 50 units? (b) The economy is currently operating at point C What is the opportunity cost of increasing production of non-manufactured goods by (1) 15 units; (1) 20 units? (c) The econory is at D. Whot is the marginal cost of increasing production of non-manufactured goods to the point () C; (i) B? Thanks in advance!
CLOI. Define economics and explain its importance to individuals' and firms' success. CLO2. Describe the production possibilities frontier and relate its importance to utilizing firms' economic resources efficiently. CLO3. Construct the supply and demand curves and interpret them to understand market forces. CLO4. Calculate the different types of demand and supply elasticities. Question 1 (CLO1) : 1.Explain the difference between positive economics and normative economics ( 2. Specify for each example if it is positive or normative statement ( • When there is a crisis, the unemployment rate increases. • You should practice more yoga and meditation.
Question 3 Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units. (a) State whether 9 units of Good B and 12 units of Good A are attainable, unattainable, efficient or inefficient. [State all that applies.] Select one or more: attainable unattainable efficient inefficient
Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units. (a) State whether 9 units of Good B and 12 units of Good A are attainable, unattainable, efficient or inefficient. [State all that applies.] Select one or more: O attainable unattainable O efficient O inefficient
4) The fact that wants cannot be fully satisfied with available resources reflects the definition of A) the what tradeoff. B) scarcity. C) the big tradeoff. D) for whom to produce. 5) Suppose the Gallo sisters, Ernestine and Julia, were not on speaking terms with one another. They each raised grapes and peanuts. Ernestine could increase her output of grapes by one bushel if she reduced her output of peanuts by two bushels and Julia could increase her output of grapes by one bushel if she reduced her output of peanuts by four bushels. According to this information, Ernestine has: A) a comparative advantage in the production of grapes. B) a comparative advantage in the production of both goods. C) a comparative advantage in the production of peanuts. D) an absolute advantage in the production of peanuts 6) Factors of production are grouped into four categories: A) land, labor, capital, entrepreneurship B) land, labor, capital, money C) land, capital, money, entrepreneurship D) labor,…
Potatoes 120- (a) 10 units of potatoes. (b) 20 units of potatoes. (c) 30 units of potatoes. (d) 40 units of potatoes. 100 90 70 40 20 D 10 20 30 40 Wine 7. From FIGURE 1, if the economy is operating at point C, the opportunity cost of producing an additional 10 units of oranges will be Oranges 8. From FIGURE 1, the production possibilities curve might shift outward to include G if (a) the economy put all unemployed resources to work. (b) the economy experienced more rapid price inflation. (e) improved training increased the productivity of workers such that there is economic growth. (d) the nation's population declined Bread FIGURE 1 D FIGURE 2 9. Refer to FIGURE 2. An economy is operating at full employment, and then workers in the bread industry are laid off. This change is portrayed in the movement from: (a) A to B (b) B to E (c) C to F (d) G to F
6. Scarcity, opportunity cost, and marginal analysis Kevin is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Kevin has only 20 hours this week that he can devote to training. Each hour he spends swimming is an hour that he can't spend biking or running. Which basic principle of individual choice do these statements best illustrate? O People usually exploit opportunities to make themselves better off. O People face trade-offs. O Kevin has an incentive to spend more time on swimming than on biking or running. O Kevin can use time most efficiently by spending the same amounts of time on swimming, biking, and running.