fer to Figure 2-14. If this society is producing at point T a. there is unemployment. b. production is efficient. c. growth can only be achieved through an advancement in technology d. the opportunity cost of producing one more sweater is approximately 40 bushels of apples. 2000 180 160 140 120 100 ↑waters 60 40 20 Figure 2-14 W 20 40 60 80 100 120 140 160 180 apple Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two

fer to Figure 2-14. If this society is producing at point T a. there is unemployment. b. production is efficient. c. growth can only be achieved through an advancement in technology d. the opportunity cost of producing one more sweater is approximately 40 bushels of apples. 2000 180 160 140 120 100 ↑waters 60 40 20 Figure 2-14 W 20 40 60 80 100 120 140 160 180 apple Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, attainable, or not attainable. Check all that apply. Inefficient Efficient Attainable Not attainable Point A B E F O O (O
1. During the Second World War, Germany's factories were decimated and suffered many human casualties, both soldiers and civilians. How did the war affect Germany's production possibilities curve?
Country 1 Country 2 Good A Good B Good A Good B 200 160 0 20 20 75 75 0 60 60 15 120 40 45 30 80 80 60 30 40 40 80 15 0 100 445 60 60 75 Refer to Exhibit 34-4. The opportunity cost of one unit of good A is country 2. for country 1 and for 20B; 15B 2B; 1B 40B; 15B 1/2B; 1B 1/20B; 1/15B
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The production possibility curve shows all the following except O a. Economic growth O b. The law of demand O c. The supply curve of 2 goods O d. The law of increasing opportunity cost O e. Inefficiency in production
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1. Production Possibilities Country X is faced with the following output combinations for capital goods and consumer goods. Capital Goods Option ABCDE 8000 16000 24000 32000 Consumer Goods 220000 200000 160000 100000 Complete parts a, b, c, and d. a. Graph the production possibilities curve for Country X with capital goods on the x-axis and consumer goods on the y-axis. b. Does the Law of Increasing Opportunity Costs hold for this example? Explain why or why not. c. As you move from point B to point C, what is the cost of one more consumer good? d. If Country X wanted to experience higher levels of economic growth over the next few years, would they be better off choosing option B (a combination of 8000 capital goods and 200,000 consumer goods) or option D (a combination of 24000 capital goods and 100,000 consumer goods)? Explain.
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