3. Efficiency in the production possibilities modelSuppose Germany produces only two goods: corn and tablets. The following graph shows Germany's current production possibilities frontier, alongwith six output combinations represented by black points (plus symbols) labeled A to F.ABсDETABLETS (Millions)LL100F80609200 +0PPF0+Point Inefficient Efficient Unattainable20Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check allthat apply.UEU*C*84060CORN (Millions of bushels)xxDOD80100

Production Possibility Frontier represents the different combination of goods that the firm can…

3. Efficiency in the production possibilities model Suppose Germany produces only two goods: corn and tablets. The following graph shows Germany's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. B с D TABLETS (Millions) E 100 LL 80 60 40 20 0 0 PPF 0+ 20 Point Inefficient Efficient Unattainable A 0 +w 0 Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. хс 40 m 60 CORN (Millions of bushels) 0 80 O 100 ?

3. Efficiency in the production possibilities model Suppose Germany produces only two goods: corn and tablets. The following graph shows Germany's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. B с D TABLETS (Millions) E 100 LL 80 60 40 20 0 0 PPF 0+ 20 Point Inefficient Efficient Unattainable A 0 +w 0 Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. хс 40 m 60 CORN (Millions of bushels) 0 80 O 100 ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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According to the article of Jan 18, 2016 "several Canadians are nominated for Oscars" answer the question that if we consider a production possibilities frontier that measures movies and other goods and services. How does the Production possibility frontier illustrate production efficiency? Use the economic concept.
Both Geppetto and Lewis are toy store owners. They decide that they would like to trade puzzles and puppets in order to better stock their toy store shelves. The table below compares their production possibilities schedules. Production Possibilities Schedules Geppetto Lewis Puzzles Puppets Puzzles Puppets 80 0 30 0 64 4 24 4 48 8 18 8 32 12 12 12 16 16 6 16 0 20 0 20 Instructions: Enter your answers as a whole number. a. Geppetto and Lewis agree to trade at a rate of 3 puzzles for each puppet. With those terms of trade, who is most likely to be the supplier of puzzles? Who is most likely to be the supplier of puppets? Puzzles: Geppetto Puppets: Lewis b. The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. The terms of trade are still 3 puzzles for each puppet. How many puzzles and puppets will each one have after they complete their trade? Lewis: puzzles and puppets Geppetto: puzzles and puppets Geppetto Lewis Puzzles Puppets Puzzles Puppets 80 64 48 32…
Ice cream (millions of gallons per year) 5 A 4 В 3 2 3 4 Milk (millions of gallons per year) The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and Bis A) 4 gallons of ice cream for a gallon of milk. B) 3 gallons of ice cream for a gallon of milk. C) 1 gallon of ice cream for a gallon of milk. D) 1/3 of a gallon of ice cream for a gallon of milk. E) zero because at point A, zero milk is being produced.
Use the following Production Possibilities Graph to explain the concepts of scarcity, choice, and opportunity cost and how they relate to decision making. Be sure to specify how the PPF graph inllustrates each concept and include numerical values. Butter | 3 25 == 05 15 10 == 1.5 0.0 1.6 Guns 0 2 3 4 Butter 20 12 ● 20 18 16 14 12 4 2 0 Guns (Protective Goods) vs Butter (Consumer Goods) (In billions of metric tons) 1 2 Guns 3
Suppose that Spain and Greece both produce wine and olive oil. The following table shows combinations of the goods that each country can produce in a week (in thousands of liters). Spain Greece Wine Olive Oil Wine Olive Oil 0 16 0 30 1 12 1 24 2 8 2 18 3 4 3 12 4 0 4 6 -- -- 5 0 a. Who has a comparative advantage in producing wine? Who has a comparative advantage in producing olive oil? Explain b. Suppose that Spain is currently producing 1000 liters of wine and 12000 liters of olive oil per week and Greece is currently producing 3000 liters of wine and 12000 liters of olive oil per week. Demonstrate that Spain and Greece can both be better off if they specialise in producing only one good and then engage in trade.
Draw the production possibilities frontier on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis Annual Production of Y Annual Production of X 0 20 45 60 70 75 1300 1200 900 6:00 350 0 b. If the economy is producing 45 units of X and 900 units of Y, what is the opportunity cost of producing an extra 15 units of X. Show on graph. C. If the economy is producing 20 units of X and 800 units of Y, what is the opportunity cost of producing an extra 10 units of X. Show on graph.
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5. Opportunity cost and production possibilities Van is a skilled toy maker who is able to produce both trucks and balls. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Hours Producing Produced Choice (Trucks) (Balls) (Trucks) (Balls) A 8 4 B 6 2 3 8 4 4 2 13 D 2 6 1 15 E 8 16 On the following graph, use the blue points (circle symbol) to plot Van's initial production possibilities frontier (PPF).
The table below list the different combinations of surfboards and tables that can be produced with a fixed quantity of resources 1. Production Possibilities Frontier Surfboards Tables 140 120 90 50 0 A. Plot the production possibilities frontier B. Show a point X that is both feasible and efficient IA JO B 50 C90 D 120 E 140 C. What is the opportunity cost of moving production from A to B? D. What is the opportunity cost of moving production from E to C? E. Does this PPF display the Law of Increasing Opportunity Cost? Explain
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PISTACHIOS (Millions of pounds) 16 14 12 10 0 0 PPF 2 Glacier 4 6 8 10 12 14 16 PEAS (Millions of pounds) PISTACHIOS (Millions of pounds) 16 14 12 10 0 0 PPF 2 4 6 Congaree 8 10 12 PEAS (Millions of pounds) A 14 16 Glacier has a comparative advantage in the production of while Congaree has a comparative advantage in the production of Suppose that Glacier and Congaree specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of pistachios. million pounds of peas and million pounds of Suppose that Glacier and Congaree agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 6 million pounds of peas for 6 million pounds of pistachios. This ratio of goods is known as the price of trade between Glacier and Congaree.
Point A B C D E Production of X Production of Y 0 40 36 28 16 0 3 6 9 12 The above table shows production combinations on a country's production possibilities frontier. Which of the following is an example of a production point that is inefficient? OA. 10 units of good X and 16 units of good Y B. 6 units of good X and 28 units of good Y OC. 3 units of good X and 35 units of good Y OD. 0 units of good X and 40 units of good Y CEED