Consider an economy than only produces two goods - Blueberries and Batteries. Step 1: Draw a production possibilities frontier (PPF) for this economy. Label blueberries on the vertical axis and batteries on the horizontal axis. Label one point that is "efficient", one point that is "inefficient", and one point that is "unattainable". Step 2. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a technological change that increased the production of batteries only. (Hint: The intercept for blueberries will not change.) Clearly label the new PPF. Step 3. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a drought that destroyed some of the blueberry harvest. (Hint: The intercept for batteries will not change.) Clearly label the new PPF. Step 4: Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a wave of immigration to the economy in which the workers were equally capable of working in battery production or blueberry production. (Hint: Both intercepts will change.) Clearly labeled the new PPF. You will have a total of 4 graphs in total. No numbers are necessary on any of the 4 graphs. I know that you know the number scale (zero to infinity from the origin going right along the horizontal axis and zero to infinity from the origin going up vertical axis), so it is not necessary to include any numbers on your graphs.
Consider an economy than only produces two goods - Blueberries and Batteries. Step 1: Draw a production possibilities frontier (PPF) for this economy. Label blueberries on the vertical axis and batteries on the horizontal axis. Label one point that is "efficient", one point that is "inefficient", and one point that is "unattainable". Step 2. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a technological change that increased the production of batteries only. (Hint: The intercept for blueberries will not change.) Clearly label the new PPF. Step 3. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a drought that destroyed some of the blueberry harvest. (Hint: The intercept for batteries will not change.) Clearly label the new PPF. Step 4: Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a wave of immigration to the economy in which the workers were equally capable of working in battery production or blueberry production. (Hint: Both intercepts will change.) Clearly labeled the new PPF. You will have a total of 4 graphs in total. No numbers are necessary on any of the 4 graphs. I know that you know the number scale (zero to infinity from the origin going right along the horizontal axis and zero to infinity from the origin going up vertical axis), so it is not necessary to include any numbers on your graphs.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider an economy than only produces two goods - Blueberries and Batteries.
Step 1: Draw a production possibilities frontier (PPF) for this economy. Label blueberries on the vertical axis and batteries on the horizontal axis. Label one
point that is "efficient", one point that is "inefficient", and one point that is "unattainable".
Step 2. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was
a technological change that increased the production of batteries only. (Hint: The intercept for blueberries will not change.) Clearly label the new PPF.
Step 3. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was
a drought that destroyed some of the blueberry harvest. (Hint: The intercept for batteries will not change.) Clearly label the new PPF.
Step 4: Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was
a wave of immigration to the economy in which the workers were equally capable of working in battery production or blueberry production. (Hint: Both
intercepts will change.) Clearly labeled the new PPF.
You will have a total of 4 graphs in total. No numbers are necessary on any of the 4 graphs. I know that you know the number scale (zero to infinity from the
origin going right along the horizontal axis and zero to infinity from the origin going up vertical axis), so it is not necessary to include any numbers on your
graphs.
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