2. Suppose that society could produce the followingcombinations of pizzas and books:Alternative Quantity of pizzas Quantity of books50403020100ABCDEFa.b.C.d.e.f.01018242830Draw the production-possibilities frontier (PPF) for pizzaand books, being as exact and neat as possible. (Put books onthe horizontal axis. Assume that the dots define a completecurve.)Is it possible or efficient for this society to produce 25pizzas and 25 books?Is it possible or efficient for this society to produce 42pizzas and 1 book?If society is currently producing alternative B, then theopportunity cost of moving to alternative A (and getting 10more pizzas) isbooks.Is the opportunity cost of producing pizzas higher orlower moving from alternative F to E than moving fromalternative B to A? Why is this likely to be so?Suppose that the technologies used in producing bothpizzas and books improve. Draw one possible newproduction-possibilities frontier in the graph above thatrepresents the results of this change. Indicate the direction ofthe change that occurs with an arrow.

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2. Suppose that society could produce the following combinations of pizzas and books: Alternative Quantity of pizzas Quantity of books 50 40 30 20 10 0 A B C D E F a. b. C. 0 10 18 24 28 30 Draw the production-possibilities frontier (PPF) for pizza and books, being as exact and neat as possible. (Put books on the horizontal axis. Assume that the dots define a complete curve.) Is it possible or efficient for this society to produce 25 pizzas and 25 books? Is it possible or efficient for this society to produce 42 pizzas and 1 book? IS

2. Suppose that society could produce the following combinations of pizzas and books: Alternative Quantity of pizzas Quantity of books 50 40 30 20 10 0 A B C D E F a. b. C. 0 10 18 24 28 30 Draw the production-possibilities frontier (PPF) for pizza and books, being as exact and neat as possible. (Put books on the horizontal axis. Assume that the dots define a complete curve.) Is it possible or efficient for this society to produce 25 pizzas and 25 books? Is it possible or efficient for this society to produce 42 pizzas and 1 book? IS

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 1 shows the PPF for an economy that produces Food and Clothes. Which of the following production bundles is feasible and efficient? A) 50 Food and 360 Clothes B) 170 Food and 144 Clothes C) 320 Food and 48 Clothes D) 440 Food and 144 Clothes
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A production possibilities table for DVDS and computers is shown below. Production Alternatives Type of Production A B D E Computers 20 40 60 80 DVDS 80 70 55 35 a. Show these data graphically, and then identify a point that indicates an inefficient use of resources and a point that indicates an unattainable combination of goods. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total). 100 Tools 80 PPC 60 40 20 20 40 60 80 100 Computers Point (Click to select) ♥ is an example of an inefficient point, while point (Click to select) ▼ is an example of an unattainable point. b. Does the economy above demonstrate the law of increasing opportunity cost? |(Click to select) ♥ DVDS
Use the figure below to answer the following questions. Good Y 10- 8 a 4 2 0 2 4 a B 8 10 Good X Figure 2.1.1 Refer to the production possibilities frontier in Figure 2.1.1. Which one of the following is true about point C? Select one: A. It is attainable only if we consume more of good X. B. It is attainable only if we consume more of good X C. It is unattainable. D. It is attainable only if we consume less of good X. E. It is attainable only if we consume less of good Y
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Figure 2-4 C. d. e. Wheat (bushels) P Figure 3-9 15 A to E C to D D to C 6 Apples (bushels) 1. In Figure 2-4, for which of the following would this statement be true: "To get more apples we have to give up wheat." A movement from a. b. D to E B to C Q S A Q Moonshine (1) E S D D с B 6 15 D D D Q Moonshine (2) XX Q Moonshine (3) 6 O Moonshine (4) 2. "Moonshine" is illegal home brew made by adding sugar to accelerate corn fermentation. Ten pounds of sugar are necessary to make a gallon of moonshine. In the mid-1970s, the price of sugar tripled and the price of moonshine skyrocketed from $6 to $15 a gallon. Which graph in Figure 3-9 best illustrates this? a. 1 b. 2 C. 3 d. 4
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The following graph shows the production possibilities frontier for publicly provided goods and privately provided goods. Publicly provided goods 180 100 140 120 100 80 60 40 20 0 0 20 40 60 A B • E D U 80 100 120 140 160 180 200 220 Privately provided goods If the economy is currently producing at Point A, what would be the opportunity cost of producing an additional 30 units of privately produced goods?
A ng.cengage.com + Welcome to Johnston Community College Bb Support Materials and Text Chapters Two and Three - .. * MindTap - Cengage Learning >> CENGAGE MINDTAP Q Search this course Homework (Ch 02) 4. Shifts in production possibilities Suppose Japan produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for wheat, an agricultural good, and cars, a capital good. A-Z Drag the production possibilities frontier (PPF) on the graph to show the effects of a technological advance in medicine that allows workers to live longer and have extended careers. 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. (?) 360 300 PPF 240 180 At 120 60 PPF 10 20 30 40 50 60 WHEAT (Millions of bushels) O 9 2 9 O E…
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8. A small bakery makes baguettes and muffins. With the resources available (workers, flour, machines) this bakery can produce either 1500 baguettes or 2000 muffins per day. a. What is the opportunity cost of an extra muffin in terms of baguettes? b. Assume that production is currently 1200 muffins and 600 baguettes. If the bakery wanted to expand its muffin production to 1300 muffins per day, how many baguettes would be baked?
5. China is able to produce turnips and potatoes in combinations represented by the following table. (Each number represents 1,000s of bushes.) Potatoes Production Turnips point a. B C D E b. C. points. 100 and 0 90 and 10 and 20 and 30 and 40 70 40 0 Plot the data on a production possibilities graph, labeling Can China produce a combination of 30 turnips and 24 potatoes? Draw this production point on the graph (label it F) and verbally explain. Demonstrate that China experiences increasing opportunity costs by calculating the opportunity cost of producing another potato at each production point. Explain.