Exhibit 2-3 Capital Goods (thousands of units) D B PPF2 PPF 1 Consumer Goods (thousands of units) Refer to Exhibit 2-3. If PPF 1 is the relevant production possibilities frontier, society may move to PPF 2 as a result of an increase in resources. a decrease in resources. an increase in technology. both a and c both b and c
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- The table provides information about the production possibilities of a firm that produces bed linens. Quilts (per hour) Possibility A B C Pillows (per hour) 0 8 and and and 16 12 0 Draw points that show the three possibilities defined by the table. Label them A. B. and C. Draw the firm's PPF by connecting the points. Label it. Along this PPF, the quantities of A. all goods other than pillows and quilts are increasing OB. all goods other than pillows and quilts remain constant OC. pillows and quilts are either increasing or decreasing, so there is no scarcity OD. all goods other than pillows and quilts are decreasingOescribe Hhe stroturgy 450 words. blue ocean in appioximately.POSSIBILITIES PINEAPPLES MANGOESA 100 0B 90 15C 70 30D 40 45E 0 60 1. Graph the production possibility frontier (PPF) placing pineapples on the X axis and mangoes on the Y axis. 2. On PPF curve drawn, identify the following points: i. Unattainable (label the point U) ii. Attainable and efficient (label the point AE) iii. Attainable and inefficient (label the point AI) 3. What does the shape of the PPF curve drawn suggest about the opportunity cost of producing ONE more unit of pineapples or mangoes 4. If mangoes harvesting increases from 15 to 30, what is the opportunity cost of harvesting pineapples? 5. What is the economic significance of choosing to harvest at 25 pineapples and 50 mangoes? 6. With the aid of a diagram, explain the effect of a new technological mobile weather station on…
- Use the PPF to answer the following questions: D. Hard drives A 525 E. 450 400 350 300 250 200 150 100 50 5 10 15 20 25 30 35 40 45 50 Sweaters (thousands)Conceptual Analysis Using the figure, match the last two column and fill in the blanks with appropriate numbers. Answers: A - B- C-______. D-. E- 31 Shoes THE A Given PPFo, point 'b' means B Given PPF1, point 'b' means C Given PPF2, point 'e' means DA movement from PPF to PPF2 represents E A movement from PPF to PPF₂ represents 1 Economic Growth 2 Unemployment. 3 Efficient allocation 4 UnattainableThe data below describe the current production possibilities for an economy that produces two goods: Livestock Products and Aquaculture products Quantities that can be produced per month with the currently available resources Aquaculture products 6000 5900 5700 5400 5200 4100 Livestock products 0 100 200 300 350 500 Label point A B C D E F Required: (a) Explain the existence of opportunity costs in this situation. (b) Plot the PPF. Put Livestock goods on the vertical axis; Aquaculture on the horizontal axis. Label the points. Be sure each axis is to scale. Scales can differ between axes. (c) “Your PPF slopes down because of tradeoffs.” Explain that sentence in words that make sense to someone not taking economics.
- Below is the production possibilities table for consumer goods (washing machine) andcapital goods (tractor): Type of Production Production Possibilities A B C D E Washing Machine 0 4 8 12 16 Tractor 60 54 42 24 0 a. Show these data graphically.b. If the economy is at point B, what is the cost of one more washing machine?What is the cost of one more tractor?c. Explain how the production possibilities frontier reflects the law ofincreasing opportunity costs.9) Refer to the figure below and identify if the unattainable point on the PPF. * 15 10 PPF Pizzas (millions) a) Any point inside the PPF b) Cannot be judged with the given data c) Any point beyond the PPF d) Any point on the PPF. 10) If a good has a price, then it is considered ? a) Need b) Free Good c) Scarce e) none of the above Cola (millions of cans)Ppring2. When moving along the production possibilities frontier, opportunity cost is measured as the Select one: a. increase in the quantity produced of one good divided by the decrease in the quantity produced of another good. b. decrease in the quantity produced of one good divided by the increase in the quantity produced of another good. C. quantity produced of one good divided by the quantity produced of another good. d. quantity próduced of one good multiplied by the quantity produced of another good. NEXT PAGE ENG
- It’s Friday night. You already have a ticket to aconcert, which cost you $30. A friend invites youto go out for a game of paintball instead. Admission would cost you $25, and you think you’d get$25 worth of enjoyment out of it. Your concertticket is nonrefundable. What is your opportunitycost (in dollars) of playing paintball?Consider two individuals, Fred and Barney. In one hour, Fred can produceeither 15 gallons of beer, or 3 gallons of wine. In one hour, Barney can produce2 gallons of beer or 4 gallons of wine. Assume both goods can be produced incontinuous quantities. Assume that each person wants to consume 3 gallons of wine, then as muchbeer as they can. Determine what each person will end up consumingi) when they cannot trade.ii) when they can trade at a price of 1gallon wine = 2 gallons beer.Use this to explain why trade benefits both consumers.Juanita is a talented artist who sells hand-crafted goods on her website. Juanita currently crafts and sells both tea towels and pillows. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good. Hours Crafting Produced Choice (Tea towels) (Pillows) (Tea towels) (Pillows) A 0 4 0 B 2 3 10 4 2 16 6 1 19 0 20 PILLOWS C D E 30 25 On the following graph, use the blue points (circle symbol) to plot Juanita's initial production possibilities frontier (PPF). 20 2 10 5 0 D 8 6 4 1 NO 2 8 + 2 3 4 TEA TOWELS 5 8 7 Initial PPF 4 New PPF Suppose Juanita is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is per day. Now, suppose Juanita is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day per day. is