4. Suppose there are 2 goods, waffles and donuts (doughnuts, if you're fancy). Further suppose that it is possible to make 500 waffles if all resources are allocated to the production of waffles, OR, instead, it is possible to produce 1000 donuts if all resources are allocated to the production of donuts. Please draw a PPF for these 2 goods, assuming all resources are identical.

4. Suppose there are 2 goods, waffles and donuts (doughnuts, if you're fancy). Further suppose that it is possible to make 500 waffles if all resources are allocated to the production of waffles, OR, instead, it is possible to produce 1000 donuts if all resources are allocated to the production of donuts. Please draw a PPF for these 2 goods, assuming all resources are identical.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter2: Economic Tools And Economic Systems

Section: Chapter Questions

Problem 3.6P

See similar textbooks

Similar questions

1. Assume you are on an iceland, where you can produce different combinations of coconuts and fish that can be harvested in a given week. The table below shows these combinations. Notice that you can produce either all crabs, all pineapples, or a mix of the two. Coconuts Fish 25 3 15 4 12 5 a) Draw PPF using the information from this table; b) Calculate opportunity cost of coconuts if you decide to increase their harvest from 3 to 5; c) Calculate the slope of the PPF if you increase their harvest from 3 to 5; d) Will you harvest 5 coconuts and 12 fish on any day of the week? Why? e) Will you harvest 5 coconuts and 4 fish on any day of the week? Why?
Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have ten hoursof time available. The can use their time to do one of two things: make pancakes or make hamburgers.Bob can make two hamburgers in an hour or one pancake in an hour. Jake can make three pancakes in anhour or two hamburgers in an hour. Use this information to answer the following questions:a.) Draw Jake and Bob’s PPFs, with hamburgers on the x-axis.b.) Give equations for Jake and Bob’s PPFs in y = mx+b form, still treating hamburgers as the xvariable.c.) Who has absolute advantage in the production of hamburgers? Who has absolute advantage inthe production of pancakes?d.) Who has comparative advantage in the production of hamburgers? Who has comparativeadvantage in the production of pancakes?e.) Can Bob and Jake both benefit from trade if the terms of trade are one pancake per hambruger?Why
Questiono On the PPF below, point D is most likely: Production Possibilities Frontier (PPF) Production of Pizza B O neither productively or allocatively efficient O productively efficient, but not allocatively efficient O both productively and allocatively efficient O allocatively efficient, but not productively efficient E с Production of Sugar
Paul's PPF Sue's PPF Cheese Cheese 100 80 40 B 32 36 60 Ham 18 30 Ham In the graph above, suppose Paul is producing combination A and Sue is producing combination B when they decide to trade. You would expect Paul to specialize in producing [Select] *and Sue to specialize in producing (Select 1 so that the total production of Ham increases by Select and the total production of Cheese increases ISelect
Salads (per hour) 40 35 30 25 ur buy 20 salads from joe 20 Joe buys 10 smoothies 15 from Lie 10 Joe's PPF Li's PPF is 30 15 20 25 40 Smeothles (per hour) The figure above shows Liz's and Joe's production possibilities for Salads and Smoothies. Using the figure above, suppose with no trade Liz and Joe each produce at point A on their respective PPFS. Then, Joe suggests that they specialize and trade. He would produce only salads and Liz would produce only smoothies. Then, Joe says, he would buy 16 smoothies from Liz at a price of 1.5 salads per smoothie. Liz should A) accept Joe's offer since she will gain 4 salads, but no smoothies B) accept Joe's offer since she will gain 4 smoothies and 4 salads. OC) not accept Joe's offer since she would lose 2 smoothies and 2 salads. D) accept Joe's offer, as she will be as well off as with no trade.
Consider two individuals, Fred and Barney. In one hour, Fred can produceeither 15 gallons of beer, or 3 gallons of wine. In one hour, Barney can produce2 gallons of beer or 4 gallons of wine. Assume both goods can be produced incontinuous quantities. Assume that each person wants to consume 3 gallons of wine, then as muchbeer as they can. Determine what each person will end up consumingi) when they cannot trade.ii) when they can trade at a price of 1gallon wine = 2 gallons beer.Use this to explain why trade benefits both consumers.
Refer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): Production Alternatives Type of Production A B D E Automobiles 4 8 Forklifts 30 27 21 12 a. Show these data graphically. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total). 10 Tools 8 PPC 4 2 10 20 30 40 50 Forklifts Upon what specific assumptions is this production possibilities curve based? (Click to select) Automobiles
Rafael's PPF Naomi's PPF 30 30 25 25 20 20 A 15 15 10 10 A 5 10 15 20 25 30 10 15 20 25 Rackets Rackets Refer to the diagrams above. Suppose that before trading, Rafael and Naomi had been producing at point A on their respective PPF. Then suppose they choose to specialize and trade. After specializing they trade 8 Rackets for 8 Balls. After this trade, Rafael will consume and Select one: а. 20 Rackets; 8 Balls b. 8 Rackets; 8 Balls C. 8 Rackets; 12 Balls d. 12 Rackets; 8 Balls Balls Balls 30
Refer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): Production Alternatives Type of Production Automobiles A B D 2 4 8 Forklifts 30 27 21 12 a. Show these data graphically. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total). 10 Tools 8 PPC 6. 4 10 20 30 40 50 Forklifts Upon what specific assumptions is this production possibilities curve based? (Click to select) b. If the economy is at point C, what is the (opportunity) cost of 2 more automobiles? What is the (opportunity) cost of 6 more forklifts? Which characteristic of the production possibilities curve reflects the law of increasing opportunity costs: its shape or its length? (Click to select) Automobiles
Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have 10 hours of time available. They can use thier their time to do one of 2 things: make pancakes or make hamburgers. Bob can make 2 hamburgers in an hour or 1 pancake in an hour. Jake can make 3 pancakes in an hour and 2 hamburgers in an hour. Use this information to answer the following questions: a) Who has absolute advantage in the production of hamburgers? Who has absolute advantage in the production of pancakes? b) Who has comparative advantage in the production of hamburgers? Who has comparative advantage in the production of pancakes? c) Can Bob and Jake both benefit from trade if the terms of trade are one pancake per hamburger? Why or why not?
Macmillan Learn Suppose that Ned can produce either potato chips or computer chips. If he only produces potato chips he can produce 50 in a day. If he only produces computer chips, he can produce 25 in a day. Drag the endpoints of the line to plot his production possibilities frontier (PPF) on the graph. Potato Chips 50 45 40 35 30 25 20 15 10 Incorrect 5 O 0 5 10 15 20 25 30 Computer Chips 35 40 Ned's PPP 45 50 What is the opportunity cost of potato chip production in terms of computer chips? 4/3 0 0 0 1/2 50 25 2 3/4
Table 2.1.1 The following table gives points on the production possibilities frontier for goods X and Y. Point Production of X Production of Y A B C) 4 units of Y. OD) 8 units of Y. E) 4 units of X. C D E 0 4 8 12 16 40 36 28 16 0 Refer to Table 2.1.1. The opportunity cost of increasing the production of X from 8 to 12 units is OA) 12 units of Y. B) 16 units of Y.