Use the figure below to answer the following questions. Assume the economy is currently at PPC1.Output of Trucks (per day)A..XBPPC₂PPC₁Output of Tanks (per day)PPC₂ a. At which point (s) is this societyproducing some of each type of outputbut producing inefficiently?? Y? A?B? CXb. At which point (s) is this societyproducing the most output possiblewith the available resources andtechnology?O PPC₁ to PPC2O PPC1 to PPC3? A? B? C? X? Yc. At which point (s) is the outputcombination unattainable withavailable resources and technology?d. Which curve best represents the change that would occur if the resources of this society increased?O PPC₁ to PPC3O PPC₁ to PPC2? X? A? B? C? Ye. Which curve best represents the change that would occur with a huge natural disaster that destroyed one-third of productioncapacity?

PPC or PPF are the curve which shows possible combinations of two goods that a country can produce…

a. At which point (s) is this society producing some of each type of output but producing inefficiently? ? Y ? A ? B ?C ? X b. At which point (s) is this society producing the most output possible with the available resources and technology? ? A O PPC₁ to PPC2 O PPC₁ to PPC3 ? B ? C ? X ? Y c. At which point (s) is the output combination unattainable with available resources and technology? d. Which curve best represents the change that would occur if the resources of this society increased? O PPC₁ to PPC3 O PPC₁ to PPC2 ? X ? A ?B ?C ? Y e. Which curve best represents the change that would occur with a huge natural disaster that destroyed one-third of production capacity?

a. At which point (s) is this society producing some of each type of output but producing inefficiently? ? Y ? A ? B ?C ? X b. At which point (s) is this society producing the most output possible with the available resources and technology? ? A O PPC₁ to PPC2 O PPC₁ to PPC3 ? B ? C ? X ? Y c. At which point (s) is the output combination unattainable with available resources and technology? d. Which curve best represents the change that would occur if the resources of this society increased? O PPC₁ to PPC3 O PPC₁ to PPC2 ? X ? A ?B ?C ? Y e. Which curve best represents the change that would occur with a huge natural disaster that destroyed one-third of production capacity?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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