Based on the table below answer the following:PointsABCCombinations of sweaters and phonessweaters161284phones0123D40E1. Draw a production possibilities frontiers (PPF) using the data from the table below (put sweaters in the vertical axis and phones in the horizontal axis) andshowing all the points in the PPF.2. What is the opportunity cost of an extra phone when you are on segment AB? What about when you are at segment CD? (i.e., how many sweaters you have togive up in order to get an extra phone? Show your work!)3. What is your PPF's shape? Explain why your PPF has that shape based on your answer on (2).4. Illustrate the effect of a new technology in the production of phones only in this economy.

1. graph added in explanation .2. from segment AB : 4 sweaters / 1 phone from segment CD : 4…

Answered: Based on the table below answer the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Rubric: Students can show how the PPF shift should all 10 resources be placed into the production of one good versus another. PPF accurately labelled. Can be shown on 1 or 2 graphs.
A production possibilities table for DVDS and computers is shown below. Production Alternatives Type of Production A B D E Computers 20 40 60 80 DVDS 80 70 55 35 a. Show these data graphically, and then identify a point that indicates an inefficient use of resources and a point that indicates an unattainable combination of goods. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total). 100 Tools 80 PPC 60 40 20 20 40 60 80 100 Computers Point (Click to select) ♥ is an example of an inefficient point, while point (Click to select) ▼ is an example of an unattainable point. b. Does the economy above demonstrate the law of increasing opportunity cost? |(Click to select) ♥ DVDS
Using the PPC in question A answer the following questions (c,d) C. If the economy is producing 3 automobiles and 20 forklifts, what would you conclude about this economies use of resources? D) What would production at a point outside the PPC indicate?
Suppose that an economy produces only 2 goods, beer and pizza. Show a typical production possibilities frontier for this country and use it to define and explain the opportunity cost concept and the concept of increasing opportunity costs. If a technology was invented that made the production of beer much more efficient but had no effect on the production of pizza how would the production possibilities frontier change (show it). While all points on the production possibilities curves maximize production, which point maximizes satisfaction?With reference to a diagram, show and explain how a market, left on its own, will tend toward an equilibrium in which there is neither a surplus nor a shortage of the product.What condition must be met in order to conclude that an economy is maximizing social well-being? Do the equilibriums given by individual markets necessarily lead to the maximization of social well-being (that is, if demand is equal to supply, can you conclude that well-being is…
Andrew and Beth are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of the land and alfalfa on the rest. Barley Alfalfa (Bushels per acre) (Bushels per acre) Andrew 18 6. Beth 28 7
OUTPUT OF TANKS Graph 2.1 B E OUTPUT OF AUTOMOBILES PPC2 PPC1 Bulgaria's production possibilities curve is displayed above. A movement of the production mix from point D to point F could be caused by: Select one: a. An decrease in the quantity of raw materials available. b. A shift of factors of production from one industry to another. c. A change in consumer preferences d. More labor
Suppose that an economy produces only 2 goods, beer and pizza. Show a typical production possibilities frontier for this country and use it to define and explain the opportunity cost concept and the concept of increasing opportunity costs. If a technology was invented that made the production of beer much more efficient but had no effect on the production of pizza how would the production possibilities frontier change (show it). While all points on the production possibilities curves maximize production, which point maximizes satisfaction?With reference to a diagram, show and explain how a market, left on its own, will tend toward an equilibrium in which there is neither a surplus nor a shortage of the product.What condition must be met in order to conclude that an economy is maximizing social well-being? Do the equilibriums given by individual markets necessarily lead to the maximization of social well-being (that is, if demand is equal to supply, can you conclude that well-being is…
Lawns Mowed Gardens Cultivated George 10 B 5 (D Jack 6 Table 2-5 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. 4 Refer to Table 2-5. Which of the following statements istrue? A) Jack has a comparative advantage in both tasks. George has a comparative advantage in both tasks. Jack has a comparative advantage in lawn mowing and George in garden cultivating. Jack has a comparative advantage in garden cultivating and George in lawn mowing. Ⓡ
Suppose that an economy produces only 2 goods, beer and pizza. Show a typical production possibilities frontier for this country and use it to define and explain the opportunity cost concept and the concept of increasing opportunity costs. If a technology was invented that made the production of beer much more efficient but had no effect on the production of pizza how would the production possibilities frontier change (show it). While all points on the production possibilities curves maximize production, which point maximizes satisfaction?With reference to a diagram, show and explain how a market, left on its own, will tend toward an equilibrium in which there is neither a surplus nor a shortage of the product.What condition must be met in order to conclude that an economy is maximizing social well-being? Do the equilibriums given by individual markets necessarily lead to the maximization of social well-being (that is, if demand is equal to supply, can you conclude that well-being is…
Opportunity Cost and the Gains from Specializ PPF Review Problems What is the opportunity cost of an extra calculator for Smith? What is the opportunity cost of an extra calculator for Jones? Who has the absolute advantage in computer production? Who has the absolute advantage in calculator production? Who has the comparative advantage in calculator production? Who has the comparative advantage in computer production? Jones 6 120
Level 2: Opportunity Cost, Comparative Advantage, and Specialization The opportunity cost of gathering firewood is then the calories of fish given up per log of firewood gained. (Fill in the blanks in the formula and perform the calculation). Opportunity Cost of Gathering = cals fish logs woo = calories per log

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