### Production Possibilities Schedule AnalysisA nation can produce two products: steel and wheat. The table below illustrates the nation's production possibilities schedule, which depicts various combinations of the two goods that can be produced.#### Production Possibilities Schedule| Product | A | B | C | D | E | F ||----------|----|----|----|----|----|----|| **Steel** | 0 | 1 | 2 | 3 | 4 | 5 || **Wheat** | 100 | 90 | 75 | 55 | 30 | 0 |---### Opportunity Cost AnalysisWhen moving stepwise from possibility A to B to C to D to E to F, the opportunity cost of producing one additional unit of steel (measured in terms of the quantity of wheat foregone) changes. By examining the production possibilities schedule, it's clear that:- **From A to B**: Increasing steel from 0 to 1 requires sacrificing 10 units of wheat (100 - 90).- **From B to C**: Increasing steel from 1 to 2 requires sacrificing 15 units of wheat (90 - 75).- **From C to D**: Increasing steel from 2 to 3 requires sacrificing 20 units of wheat (75 - 55).- **From D to E**: Increasing steel from 3 to 4 requires sacrificing 25 units of wheat (55 - 30).- **From E to F**: Increasing steel from 4 to 5 requires sacrificing 30 units of wheat (30 - 0).This shows that the opportunity cost, in terms of wheat foregone, **increases** as we move from A to F.---### Multiple Choice QuestionIn moving stepwise from possibility A to B to C ... to F, the opportunity cost of a unit of steel in terms of wheat:- **Increases.** - Decreases.- Remains constant.- Increases at first, then decreases.The correct answer is: **Increases.**

The production possibility schedule depicts the combination of two goods that can be produced using…

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule. Product Steel Wheat Production Possibilities Schedule C A 0 100 B 1 90 2 75 D 3 55 E 4 30 F 5 0 In moving stepwise from possibility A to B to C... to F, the opportunity cost of a unit of steel in terms of wheat

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule. Product Steel Wheat Production Possibilities Schedule C A 0 100 B 1 90 2 75 D 3 55 E 4 30 F 5 0 In moving stepwise from possibility A to B to C... to F, the opportunity cost of a unit of steel in terms of wheat

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

2-2b Suppose that Canada produces only lumber and fish. It has 18 million workers, each of whom can cut 10 feet of lumber or catch 20 fish daily. 4. What is the opportunity cost of producing 1 foot of lumber? 5. Use your graph to determine how many fish can be caught if 60 million feet of lumber are cut.
Suppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables. The combination of ________ reflects ________. Question content area bottom Part 1 A. 1000 books and 1500 tables; a free lunch B. 1000 books and 500 tables; an efficient point C. 1000 books and 1000 tables; a free lunch D. 500 books and 1000 tables; an inefficient but attainable point
Q66 Katie and Hugh are producing pies and jars of pickles. Katie can produce either 200 jars of pickles or 100 pies per month. Hugh can produce either 800 jars of pickles or 200 pies per month. Which of the following statements is correct? a. Katie's opportunity cost of producing 1 jar of pickles is 0.5 pies. b. Katie's opportunity cost of producing 1 jar of pickles is 2 pies. c. Hugh's and Katie's opportunity costs of producing are the same. d. Hugh's opportunity cost of producing 1 pie is 0.25 jars of pickles. e. Hugh's opportunity cost of producing 1 jar of pickles is 4 pies. Clear my choice ◄ Midterm 2 Jump to...
Country 1 Country 2 Good A Good B Good A Good B 200 160 0 20 20 75 75 0 60 60 15 120 40 45 30 80 80 60 30 40 40 80 15 0 100 445 60 60 75 Refer to Exhibit 34-4. The opportunity cost of one unit of good A is country 2. for country 1 and for 20B; 15B 2B; 1B 40B; 15B 1/2B; 1B 1/20B; 1/15B
Q.1 Pounds of Beef per Year (millions) 2.25 2.00 1.75 0 G 5.0 7.0 10.0 Bushels of Wheat per Year (millions) 1. What is the opportunity cost between points F and G? Is point H feasible? Yes/No. Explain in one sentence. 2.
Table 2-5 Corn (in bushels) Wheat (in bushels) 2000 1600 700 1200 1300 800 1800 400 2200 0 2500 Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Based on the values in the table, t possibilities frontier is O a. bowed inward indicating increasing opportunity costs. Ob. a straight line indicating constant opportunity costs. Oc. bowed outward indicating increasing opportunity costs. Od. bowed outward indicating decreasing opportunity costs.
None
42000 25 10 Max's PPF Good x EVERERA NO 30 21 Milly's PPF 1. What is the opportunity cost of producing one unit of Good Y for Max in terms of Good X? You must enter a number. Fractions will not be accepted. Enter a decimal if necessary. 2 x 4 2. What is the opportunity cost of producing one unit of Good X for Max in terms of Good Y? You must enter a number. Fractions will not be accepted. Enter a decimal if necessary. 5 x
1. Production Possibilities Country X is faced with the following output combinations for capital goods and consumer goods. Capital Goods Option ABCDE 8000 16000 24000 32000 Consumer Goods 220000 200000 160000 100000 Complete parts a, b, c, and d. a. Graph the production possibilities curve for Country X with capital goods on the x-axis and consumer goods on the y-axis. b. Does the Law of Increasing Opportunity Costs hold for this example? Explain why or why not. c. As you move from point B to point C, what is the cost of one more consumer good? d. If Country X wanted to experience higher levels of economic growth over the next few years, would they be better off choosing option B (a combination of 8000 capital goods and 200,000 consumer goods) or option D (a combination of 24000 capital goods and 100,000 consumer goods)? Explain.
If the nation depicted in Table 2.2 is producing at combination E, the opportunity cost of producing the tenth unit of consumer good is: A 1 unit of capital good. B C D E zero unit of capital good. 6 units of capital goods. 4 units of capital goods. 10 units of capital goods. Given below is the production possibilities schedule for capital goods and consumer goods. Table 2.2 Production Possibilities Schedule Combination Capital Goods Consumer Goods
Refer to Figure 2-14. If this society is producing at point T, a. there is unemployment. b. production is efficient. c. growth can only be achieved through an advancement in technology. d. the opportunity cost of producing one more sweater is approximately 40 bushels of apples. ↑sweaters 200 180+ 160 140 120 100- 80 60 40+ 20 Figure 2-14 20 40 60 80 100 120 140 160 180 apples Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two
Productivity Table Soup per unit of labor Swords per unit of labor Wesley 30 25 Fezzik 10 30 What is the opportunity cost of swords if total sword production is 40?