4. Production Possibility Frontier An economy consists of three workers: Rajiv, Yakov, and Charles. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Rajiv can either mow 1 lawn or wash 2 cars; Yakov can either mow 1 lawn or wash 1 car; and Charles can either mow 2 lawns or wash 1 car. For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row. Scenario Lawns Mowed Cars Washed All three spend all their time mowing lawns. (A) All three spend all their time washing cars. (B) All three spend half their time on each activity. (C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns. (D) In the following table, identify the opportunity cost of washing cars for each worker. Worker Opportunity Cost of Washing Cars Rajiv Yakov Charles Assume that the resources best suited to producing a particular service are preferentially used in the production of that service and that as the economy moves down along the production possibilities frontier, one worker at a time is transferred from mowing lawns to washing cars. Using the blue points (circle symbol), graph the production possibilities frontier (PPF) for this economy on the following graph. Then use the black point (plus symbol) to identify point A, the green point (triangle symbol) to identify point B, the orange point (square symbol) to identify point C, and the purple point (diamond symbol) to identify point D on the graph.
4. Production Possibility Frontier An economy consists of three workers: Rajiv, Yakov, and Charles. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Rajiv can either mow 1 lawn or wash 2 cars; Yakov can either mow 1 lawn or wash 1 car; and Charles can either mow 2 lawns or wash 1 car. For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row. Scenario Lawns Mowed Cars Washed All three spend all their time mowing lawns. (A) All three spend all their time washing cars. (B) All three spend half their time on each activity. (C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns. (D) In the following table, identify the opportunity cost of washing cars for each worker. Worker Opportunity Cost of Washing Cars Rajiv Yakov Charles Assume that the resources best suited to producing a particular service are preferentially used in the production of that service and that as the economy moves down along the production possibilities frontier, one worker at a time is transferred from mowing lawns to washing cars. Using the blue points (circle symbol), graph the production possibilities frontier (PPF) for this economy on the following graph. Then use the black point (plus symbol) to identify point A, the green point (triangle symbol) to identify point B, the orange point (square symbol) to identify point C, and the purple point (diamond symbol) to identify point D on the graph.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:4. Production Possibility Frontier
An economy consists of three workers: Rajiv, Yakov, and Charles. Each works 10 hours a day and can produce two services: mowing lawns and
washing cars. In an hour, Rajiv can either mow 1 lawn or wash 2 cars; Yakov can either mow 1 lawn or wash 1 car; and Charles can either mow 2
lawns or wash 1 car.
For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter
these values into the corresponding row.
Scenario
Lawns Mowed
Cars Washed
All three spend all their time mowing lawns. (A)
All three spend all their time washing cars. (B)
All three spend half their time on each activity. (C)
Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only
mows lawns. (D)
In the following table, identify the opportunity cost of washing cars for each worker.
Worker
Opportunity Cost of Washing Cars
Rajiv
Yakov
Charles
Assume that the resources best suited to producing a particular service are preferentially used in the production of that service and that as the
economy moves down along the production possibilities frontier, one worker at a time is transferred from mowing lawns to washing cars. Using the
blue points (circle symbol), graph the production possibilities frontier (PPF) for this economy on the following graph. Then use the black poìnt (plus
symbol) to identify point A, the green point (triangle symbol) to identify point B, the orange point (square symbol) to identify point C, and the purple
point (diamond symbol) to identify point D on the graph.
Type here to search
Transcribed Image Text:50
45
PPF
40
35
A
30
25
A
20
15
10
C
15
20
25
30
35
40
50
Quantity of Cars Washed
True or False: The production possibilities frontier consists of straight-line segments, rather than being smoothly bowed outward throughout, because
each worker faces a constant trade-off between mowing lawns and washing cars.
O True
O False
Indicate whether each of the following allocations is efficient or inefficient.
Allocation
Efficient
Inefficient
C
5/15/2021
CENGAGE MINNTAD
Mind Tap-Ceng
45
10
Quantity of Lawns Mowed
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