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
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
Ice cream (millions of gallons per year) 5 A 4 В 3 2 3 4 Milk (millions of gallons per year) The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and Bis A) 4 gallons of ice cream for a gallon of milk. B) 3 gallons of ice cream for a gallon of milk. C) 1 gallon of ice cream for a gallon of milk. D) 1/3 of a gallon of ice cream for a gallon of milk. E) zero because at point A, zero milk is being produced.
Use the following production possibilities tables to answer the next question. Possibilities C 8 24 A Autos (millions) 0 Chemicals (millions) 40 Germany's Production B 4 32 United States' Production B 3 48 A Autos (millions) 0 Chemicals (millions) 60 Multiple Choice O O 8 million units of autos. D 12 16 Possibilities D 9 24 6 million units of autos. C 6 36 Assume that prior to specialization and trade Germany and the United States both produced combination C. Now if each nation specializes according to its comparative advantage, the resulting gains from specialization and trade will be 6 million units of autos and 8 million units of chemicals. E 16 8 8 million units of autos and 6 million units of chemicals. E 12 12 F 20 20 F 15 0
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
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.
Refer to the production possibility frontiers for two friends Frodo and Sam who can both produce Ice creams and Jelly beans. Frodo's maximum production of Ice creams is 500 with no Jelly beans, or 2,000 Jelly beans with no Ice creams. Sam's maximum production of Ice creams is 600 with no Jelly beans, or 1,200 Jelly beans with no Ice creams. ICE CREAMS ICE CREAMS 600 500 1200 JELLY BEANS 2000 JELLY BEANS Frodo' PPF Sam's PPF Answer briefly these TWO questions in the box space provided below. Part A: Assuming efficient production without trade, derive the maximum amount of Jelly beans that can be produced by Sam along with 300 Ice creams. Describe your steps in detail. Part B: Assume that Frodo and Sam agree to specialize in production and trade between themselves. Frodo offers 1,000 Jelly beans to Sam in exchange for 300 lce creams. Would Sam agree to this trade?
Productivity Table Soup per unit of labor Swords per unit of labor Wesley 30 25 Fezzik 10 30 What is the opportunity cost of swords if total sword production is 40?
Table 2-1 Production Possibilities. Couches 150 300 450 Refer to Table 2-1. If the production possibilities frontier is bowed outward, then which of the following could be the maximum number of chairs produced when 300 couches are produced? 8,100. Chairs 10,000 9,000 2 8,400. 8,000. 6,800.