Suppose South Africa produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for com, an agricultural good, and construction vehicles, a capital good.CONSTRUCTION VEHICLES (www.COSelect the correct effect upon the PPF it there is a breakout of avian fu that sickens milions of workersOPPP vits outward increasing the potential for Com and Construction Vehicle Production.ObDecrease in possible Com Production, no change in Construction Vehicles ProductionOCPPF shifts inward, decreasing the potential Corn and Construction Vehicle ProductionO Decrease in posible Construction Vehide Production, no change in Com Production.✓

Production possibility frontier or PPF shows the different combinations of two goods that can be…

COMETRUCTION VEHICLES 1 .. Africa produces two types of The following dagram shows is current production Select the corect effect upon the PPF there is a treakout of evan u that sickers mons of workers OPPF vts outward increasing the potential for Corn and Construction Vehicle Production Os Decen possible Come Production, no change in Construction Vehicles Production OCP shits inard decreasing the potential Com and Construction Vehicle Production O Decrease in possible Construction Vehicle Production, no change in Com Production 4

COMETRUCTION VEHICLES 1 .. Africa produces two types of The following dagram shows is current production Select the corect effect upon the PPF there is a treakout of evan u that sickers mons of workers OPPF vts outward increasing the potential for Corn and Construction Vehicle Production Os Decen possible Come Production, no change in Construction Vehicles Production OCP shits inard decreasing the potential Com and Construction Vehicle Production O Decrease in possible Construction Vehicle Production, no change in Com Production 4

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter7: Economic Growth: Theory And Policy

Section: Chapter Questions

Problem 4TY

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Concept explainers

Production Possibility Analysis

The production possibility analysis comprises the production possibility frontier (PPF), or the production possibility curve (PPC) to evaluate a society or even an economy. The production possibility curve represents the cost that the society has to incur for choosing between two different commodities. It is assumed that an economy that operates at the highest production possibility curve is known to have a better standard of living which the society can achieve for producing the optimum level of output which it can produce given a specified number of factors of production or inputs or resources.

Question

Suppose South Africa produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for com, an agricultural good, and construction vehicles, a capital good.
CONSTRUCTION VEHICLES (
www.
CO
Select the correct effect upon the PPF it there is a breakout of avian fu that sickens milions of workers
OPPP vits outward increasing the potential for Com and Construction Vehicle Production.
ObDecrease in possible Com Production, no change in Construction Vehicles Production
OCPPF shifts inward, decreasing the potential Corn and Construction Vehicle Production
O Decrease in posible Construction Vehide Production, no change in Com Production.
✓

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