**Text Transcription and Graph Explanation for Educational Website**---**Text:**Assume the economy can produce either sports utility vehicles (SUVs) or minivans. The graph below depicts the current production possibilities frontier (PPF). Suppose several new factories are built. Move the end points of the PPF below to show how the PPF changes. Assume that the factory construction affects the economy's ability to produce both minivans and SUVs. This is an example of:- ○ economic stagnation.- ○ economic recession.- ○ economic contraction.- ○ economic growth.---**Graph Explanation:**The graph illustrates a Production Possibilities Frontier (PPF) curve, which is a concave downward sloping line. The horizontal axis represents the "Quantity of SUVs," and the vertical axis represents the "Quantity of minivans." The PPF line shows various combinations of SUVs and minivans that the economy can produce using all available resources efficiently.- The curve is labeled "PPF."- The endpoints of the PPF indicate the maximum possible output of either SUVs or minivans if all resources are dedicated to producing one type of vehicle.- Shifting the PPF outward, which can be visualized by moving the endpoints further from the origin, is indicative of an increase in the economy's production capacity, suggesting economic growth.The task involves considering the impact of constructing new factories, which would ostensibly shift the PPF outward, illustrating that the economy can now produce more of both goods, exemplifying economic growth.

The production possibility frontier refers to the many combinations of commodities and services that can be produced efficiently in a country with given resources. locations placed inside the PPF curve are inefficient, while locations placed outside the PPF curve are unattainable. The positions on the PPF curve are reachable and efficient in terms of production. The graph should be represented as follows:The advent of new enterprises producing both SUVs and Minivans will cause an outward shift in the PPF. The example demonstrates the nation's 'economic growth' as the manufacturing of both SUVs and minivans increases. The correct option is 4.

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Assume the economy can produce either sports utility vehicles (SUVS) or minivans. The graph below depicts the current production possibilities frontier (PPF). Suppose several new factories are built. Move the end points of the PPF below to show how the PPF changes. Assume that the factory construction affects the economy's ability to produce both minivans and SUVs. Quantity of minivans PPF This is an example of: economic stagnation. economic recession economic contraction. economic growth.

Assume the economy can produce either sports utility vehicles (SUVS) or minivans. The graph below depicts the current production possibilities frontier (PPF). Suppose several new factories are built. Move the end points of the PPF below to show how the PPF changes. Assume that the factory construction affects the economy's ability to produce both minivans and SUVs. Quantity of minivans PPF This is an example of: economic stagnation. economic recession economic contraction. economic growth.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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