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)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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