4. Shifts in production possibilities Suppose the fictional country of Rainier produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for rice, an agricultural good, and electric generators, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a long drought that reduces the amount of water available for farmers to use for irrigation. 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. ? ELECTRIC GENERATORS (Thousands) 8 250 200 150 100 8 80 PPF 100 240 320 RICE (Millions of bushels) 400 400 60 PPF

4. Shifts in production possibilities Suppose the fictional country of Rainier produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for rice, an agricultural good, and electric generators, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a long drought that reduces the amount of water available for farmers to use for irrigation. 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. ? ELECTRIC GENERATORS (Thousands) 8 250 200 150 100 8 80 PPF 100 240 320 RICE (Millions of bushels) 400 400 60 PPF

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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