Answered: Consider a society facing the…

Consider a society facing the Production Possibilities Frontier illustrated below. If this society wanted to move its productivity from point B to point D, what is its opportunity cost?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Discuss the impact of each of the following on the production possibilities frontier and illustrate…

A: a) Unemployment refers to when all the available resources in the economy are not utilized…

Q: Explain why the slope of the production possibilities curve becomes steeper as we move along the…

A: The production possibility curve (PPC) refers to a graphical representation of various combinations…

Q: Consider the following production possibilities table that shows different combinations of two goods…

Q: Which of the following are examples of opportunity cost? (please choose all the answers that are…

A: Opportunity cost refers to the best given up values among the alternate in the process of gaining…

Q: Is this a good example of opportunity cost? “In 2019, I started my small business by selling prints…

A: Opportunity cost is the cost or the value of the next best alternative that is given up.

Q: Explain what is illustrated by the production possibilities frontier. Also, why is a production…

A: Production possibility frontier shows the combination of production of two different goods at a…

Q: If Yucatan produces 200 pounds of food per month, it must produce 5050 gallons of sunscreen to…

A: Opportunity cost refers to the cost of the Opportunity foregone by choosing some other opportunity…

Q: Suppose that the economy of El Paso creates only cowboy boots and pecans. The production…

A: Opportunity cost is the value of the next best alternative that is forgone when a choice is made. In…

Q: Which of the following would cause an outward shift of the production possibilities frontier?

A: The production possibility frontier represents the different combinations of two goods that can be…

Q: Explain opportunity cost. what importance is opportunity cost to the (a) Individual; (b) Firm; (c)…

A: "In economics, cost refers to the value of money that is spent in order to produce a good." Costs…

Q: opportunity costs t each tood tem for both Carolyn and Jen Carolyn, the opportunity cost of a…

A: DISCLAIMER “Since you have asked multipart questions, we will solve the first three sub-part…

Q: When constructing a production possibilities frontier, which of the following assumptions is not…

A: A country's production possibilities frontier (PPF) displays the highest production potential for…

Q: The figure below shows the production possibilities frontier for Good A and Good B. In the figure…

A: Point e and point d are unattainable.The figure shows a production possibilities frontier (PPF) for…

Q: s this an example of opportunity cost? “To begin, I began selling prints of my pictures in 2019…

A: The cost or value of the next alternative which is best being given up is known as the cost of…

Q: According to the CIA's World Factbook Website, in January of 2011 Swaziland surpassed Botswana as…

A: Production possibility frontier (PPF) depicts the combination of two goods that an economy can…

Q: What is sweetens opportunity cost of manufacturing 1 million cars per year?

A: Sweetens is a person who makes sweets. This implies the quality and skills of sweetens is to make…

Q: A production possibilities curve is bowed out, indicating increasing opportunity cost because of

A: Meaning of Production Possibility Frontier: The term production possibility frontier refers to the…

Q: What are the basics of a "circular economy'? In your answer briefly discuss such concepts as:…

A: The basics of a circular economy: plan out waste and contamination; keep items and materials being…

Q: It is clear that productive inefficiency is a waste since resources are being used in a way that…

A: Productive inefficiency means that the same output can be produced at a lower cost of production. It…

Q: Based on the production possibility frontier below, what is the opportunity cost of producing the…

A: Given production possibility schedule of cars and TV is represented in the table below:Car (in…

Question

Consider a society facing the Production Possibilities Frontier illustrated below. If
this society wanted to move its productivity from point B to point D, what is its
opportunity cost?
wheat
720
530
410
275
180
0
1) 275 cars.
2) 135 wheat.
3) 80 cars.
1
A
350 400
D
525 605
cars
4) some amount more than 275 but fewer than 410 bushels of wheat

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define OC

VIEW

Step 2: Calculate OC

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Draw a production possibilities frontier diagram for a farm able to produce corn or soybeans. What does a production possibilities frontier illustrate?
Draw a production possibilities curve and show the impact of high unemployment and low worker participation.
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
The production possibilities curve can best be described as representing the economics principle of a) Scarcity b) Rational vs irrational behavior c) Supply and demand d) Law of unintended consequences
How could a society manage to end up consuming a bundle of goods that is beyond its production possibility frontier？ And, in doing so, how does it shift what it produces? Please include a graph that helps to illustrate your answer.
Q.3. Figure below shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes. What is the opportunity cost of moving from point B to C? Compact Disks (CDs) per Hour 180 120 60 T I 50 B 80 100 Cassettes per Hour
Define and describe the production possibilities frontier model.
Which concept is NOT illustrated by the production possibilities frontier? A. tradeoffs B. efficiency C. opportunity cost D. equity
The slope of the production possibilities frontier is called
An economy's production possibilities frontier is fixed in the long run. True False
Ron can either workout or make sushi rolls. It takes him 40 minutes to finish 1 workout and 20 minutes to make 1 sushi roll. If he has 120 minutes to do these two activities, what is the equation of the production possibility frontier (PPF) that describes the tradeoff between these two activities? (Assume workouts are on the x axis and sushi rolls are on the y axis) A y=6-2x B y=3-0.5x C y=3-2x D y=6-0.5x
Let Utopia be a very small country that produces Cheese and Bread only. Its production possibilities frontier is provided in the table above. Suppose that Utopia is currently producing at point B. What is the opportunity cost of 2 additional kg of cheese at point B ? At point C? What do these results show?