As a general rule, technological progress shifts the production possibilities curve outward, away from the origin. O increases the slope of the production possibilities curve, making it steeper. shifts the production possibilities curve inward, toward the origin. O reduces the slope of the production possibilities curve, making it flatter.

As a general rule, technological progress shifts the production possibilities curve outward, away from the origin. O increases the slope of the production possibilities curve, making it steeper. shifts the production possibilities curve inward, toward the origin. O reduces the slope of the production possibilities curve, making it flatter.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the production possibilities frontier below. Assume that an economy is producing the mix of outputs represented by point A. What would have to happen in order for this economy to produce at point B? Output 2 Technological progress A recession Output 1 Giving up some output 1 to produce more output 2 A decrease in taxes
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An expansionary fiscal policy with crowding effect Select one: a) Reduce private spending b) Decrease interest rate c) increase private spending d) None of the answers are correct e) Do not effect spending and interest rate
When economic growth occurs, the production possibilities frontier shifts outward but no longer limits the amount that can be produced. economy moves along its production possibilities frontier. production possibilities frontier shifts outward. production possibilities frontier becomes steeper.
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c. Graphically illustrate a production possibilities curve for books and ice cream.
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If Sport Country currently produces 100 bats and 400 rackets, what is the opportunity cost of an additional 100 bats? rackets. (only provide numbers, no alphabets or special characters). If Sport Country currently produces 300 bats and 300 rackets, what is the opportunity cost of an additional 100 bats? rackets. (only provide numbers, no alphabets or special characters). Suppose Sport Country currently produces 200 bats and 200 rackets. How many additional rackets could they produce without giving up any bats? rackets. (only provide numbers, no alphabets or special characters).
Can the Production Possibilities Curve shift left? If not, explain why. If it can, explain what might cause this to happen.
Refer to the production possibility frontiers for two friends Frodo and Sam who can both produce Ice creams and Jelly beans. Frodo's maximum production of Ice creams is 500 with no Jelly beans, or 2,000 Jelly beans with no Ice creams. Sam's maximum production of Ice creams is 600 with no Jelly beans, or 1,200 Jelly beans with no Ice creams. ICE CREAMS ICE CREAMS 600 500 1200 JELLY BEANS 2000 JELLY BEANS Frodo' PPF Sam's PPF Answer briefly these TWO questions in the box space provided below. Part A: Assuming efficient production without trade, derive the maximum amount of Jelly beans that can be produced by Sam along with 300 Ice creams. Describe your steps in detail. Part B: Assume that Frodo and Sam agree to specialize in production and trade between themselves. Frodo offers 1,000 Jelly beans to Sam in exchange for 300 lce creams. Would Sam agree to this trade?
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