A nation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms, as shown in the table below and the diagram on the right. Yards of carpet (Millions) 0 12 24 36 48 60 Carpet looms (Thousands) 45 42 36 27 15 0 These figures assume that a certain number of previously produced looms are available in the current period for producing carpet. If this country chooses to produce both carpet and looms, as shown by point C, the number of looms available to produce carpet will increase over time. 1.) Using the 3-point curved line drawing tool, show what will happen to the PPF over time. Label the curve 'PPF₂'. Carpet (millions of yards) 96- 84- 724 60- 48- 36 24- 12- 0- 0 Production Possibility Frontier 8.. 5 10 15 20 25 30 35 40 45 50 55 60 Looms (thousands)

A nation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms, as shown in the table below and the diagram on the right. Yards of carpet (Millions) 0 12 24 36 48 60 Carpet looms (Thousands) 45 42 36 27 15 0 These figures assume that a certain number of previously produced looms are available in the current period for producing carpet. If this country chooses to produce both carpet and looms, as shown by point C, the number of looms available to produce carpet will increase over time. 1.) Using the 3-point curved line drawing tool, show what will happen to the PPF over time. Label the curve 'PPF₂'. Carpet (millions of yards) 96- 84- 724 60- 48- 36 24- 12- 0- 0 Production Possibility Frontier 8.. 5 10 15 20 25 30 35 40 45 50 55 60 Looms (thousands)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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