19. Which of the following statements is true? a Point A is inefficient. b. Point B is inefficient. C Point A is preferred to point B d. Point C cannot be attained with current technology. 20. Suppose there is a Production Possibilities Frontier (PPF) for garlic and cheese. Which of the following situations would shift the PPF inward (toward the origin)? @ A severe weather event that destroys much of the economy's productive capacity for garlic and cheese. b. Discovery of a new, cheaper source of milk for making cheese. C Increased popularity of garlic, as compared with cheese. d. A technological breakthrough. 21. Marginal cost is the change is cost that results from a one unit increase in OPrice b. Cost C Output d. Revenue

19. Which of the following statements is true? a Point A is inefficient. b. Point B is inefficient. C Point A is preferred to point B d. Point C cannot be attained with current technology. 20. Suppose there is a Production Possibilities Frontier (PPF) for garlic and cheese. Which of the following situations would shift the PPF inward (toward the origin)? @ A severe weather event that destroys much of the economy's productive capacity for garlic and cheese. b. Discovery of a new, cheaper source of milk for making cheese. C Increased popularity of garlic, as compared with cheese. d. A technological breakthrough. 21. Marginal cost is the change is cost that results from a one unit increase in OPrice b. Cost C Output d. Revenue

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a flood changes the production capacity in a country. How would you represent this situation with a production possibilities frontier?Choose one: A. The economy moves from a point on the PPF to a point beyond the PPF. B. The economy moves from a point below the PPF to a point on the PPF. C. The entire PPF shifts in. D. The entire PPF shifts out.
14. Efficiency in the production possibilities model Suppose the fictional country of Haleakala produces only two goods: sorghum and axles. The following graph plots Haleakala's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. AXLES (Millions) 100 80 20 0 0 PPF D 20 +w E Xc 40 + B F XA 60 SORGHUM (Millions of bushels) 80 100
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3. Country A and Country B are two countries that each produce t-shirts (T) and sneakers (S). From its available resources and technology Country A can produce 100 t-shirts and 0 sneakers or 0 tshirts and 200 sneakers or any combination of t-shirts and sneakers that sits on Country A’s linear PPF. From its available resources and technology Country B can produce 50 t-shirts and 0 sneaker or 0 t-shirt and 50 sneakers or any combination of t-shirts and sneakers that sits on Country B’s linear PPF. a. On two separate graphs draw the PPF for Country A and Country B. Measure t-shirts on the vertical axis and sneakers on the horizontal axis. b. Write an equation in slope-intercept form for the PPF for Country A. c. Write an equation in slope-intercept form for the PPF for Country B
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Problem 1: Production Possibilities Frontier Consider an economy that produces bicycles and autos. The production possibilities schedule shown below denotes the points on the production possibilities frontier. Points Amount Bicycles Amount Autos A 10 B 8 D E 5 8 12 14 15 a) Draw the production possibilities frontier in a clearly labelled graph. You can assume the points on the frontier are connected by straight lines. Please put bicycles on the x-axis and autos on the y-axis. b) Is point E more efficient in production than point C? Explain. c) Based on this production possibility frontier, can the economy currently produce 8 bicycles and 10 autos? If not, explain what would need to happen to allow the economy to produce 8 bicycles and 10 autos. d) True/False/Uncertain (and explain): Point B more efficient in allocation than point A. e) Does this production frontier have increasing opportunity costs? Explain, and also explain why it is common for production frontiers to have increasing…
A marketer wants to run pre-roll video ads on YouTube before videos for local music artists. What are the options? A sponsored ads, sponsored cards, and sponsored keyword ads. B bumper ads, non-skippable video ads, and skippable video ads. C display ads, non-skippable video ads, and sponsored cards. masthead ads, pay-by-impression ads, and bumper ads.
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Adjust the production possibilities frontier (PPF) to show the economy's new production possibilities after the deterioration of infrastructure. 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. QUANTITY OF CARS (Millions) 24 16 0 0 O 5 OO PPF 10 QUANTITY OF COMPUTERS (Millions) 15 Suppose society faces a broad tradeoff between allocating resources to the production of investment goods (computers) and consumption goods (cars) before the deterioration of infrastructure described above. PPF Which of the following events would be most likely to lead to the deterioration of infrastructure you just illustrated? Increasing production of investment goods and decreasing production of consumption goods Decreasing production of investment and consumption goods Increasing…
Use the PPF to answer the following questions: (a) At point F, how many sweaters are being produced? How many hard drives? (b) Label points A-H as either efficient, inefficient, or unattainable. (c) Can we determine if point F is productively efficient? If so, is it productively efficient? (d) Can we determine if point F is allocatively efficient? If so, is it allocatively efficient?