Consider a society consisting only of Helen, who allocates her time between sewing dresses and baking bread. Each hour she devotes to sewing dresses yields 4 dresses and each hour she devotes to baking bread yields 8 loaves of bread. Suppose that a new sewing machine is introduced that enables Helen to sew 8 dresses per hour rather than only 4. If Helen works a total of 8 hours per day, show how this development shifts her production possibilities curve on the graph below. draw Helen's new PPC. Using the graph above, indicate if the following points are attainable and/or efficient before and after the introduction of the sewing machine. 16 dresses per day, 48 loaves per day: before the sewing machine and after its introduction. 24 dresses per day, 16 loaves per day: before the sewing machine and after its introduction. An increase in productivity with respect to any one good increases our options for producing and consuming all other goods.” Which of the following best explains the meaning of that statement? Production possibilities curves are always downward sloping. Technical improvements that increase the production of one good can almost always be used to increase the production of the other good (shown as a parallel outward shift). An increase in output per hour for any one good increases the output per hour of all other goods. An increase in output per hour for any one good frees up resources that can be devoted to the production of other goods.

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 a society consisting only of Helen, who allocates her time between sewing dresses and baking bread. Each hour she devotes to sewing dresses yields 4 dresses and each hour she devotes to baking bread yields 8 loaves of bread.

Suppose that a new sewing machine is introduced that enables Helen to sew 8 dresses per hour rather than only 4.

If Helen works a total of 8 hours per day, show how this development shifts her production possibilities curve on the graph below.

draw Helen's new PPC.

Using the graph above, indicate if the following points are attainable and/or efficient before and after the introduction of the sewing machine.

16 dresses per day, 48 loaves per day:

before the sewing machine and after its introduction.

24 dresses per day, 16 loaves per day:

before the sewing machine and after its introduction.

An increase in productivity with respect to any one good increases our options for producing and consuming all other goods.” Which of the following best explains the meaning of that statement?

Production possibilities curves are always downward sloping.
Technical improvements that increase the production of one good can almost always be used to increase the production of the other good (shown as a parallel outward shift).
An increase in output per hour for any one good increases the output per hour of all other goods.
An increase in output per hour for any one good frees up resources that can be devoted to the production of other goods.

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