Figure 1The production possibility frontierABCDE is a production possibility frontier. It shows the differentcombinations of goods which can be produced if all resources arefully and efficiently utilised. The economy can produce at any pointon the line. It cannot produce at G because the PPF shows themaximum that can be produced. It can produce within the PPF,05such as at F, but less will be produced than the maximum possible.Non-manufactured goods50403020100A10BTiC2030Manufactured goodsGDE40 y frontiersockcty ofhicons ingonTimesUnit 4Question 1The production possibility frontier of an economy is asshown in Figure 1.(a) (i) If the economy produces 15 units of manufactured goods,what is the maximum number of non-manufactured goodsit can produce? (ii) How many manufactured goods could itproduce if production of non-manufactured goods was 50 units?(b) The economy is currently operating at point C. What is theopportunity cost of increasing production of non-manufacturedgoods by (i) 15 units; (ii) 20 units?(c) The economy is at D. What is the marginal cost of increasingproduction of non-manufactured goods to the point (i) C; (ii) B?Growth in tthe quantityfor instanceworkers in tbe built;there is an imake workeallow machiwith the samProductionoutwards. Theexample, war cin the number.output. Some edevastate worl

The Production Prospects Frontier (PPF) is a chart that shows every one of the various mixes of…

Figure 1 The production possibility frontier ABCDE is a production possibility frontier. It shows the different combinations of goods which can be produced if all resources are fully and efficiently utilised. The economy can produce at any point on the line. It cannot produce at G because the PPF shows the maximum that can be produced. It can produce within the PPF,00 such as at F, but less will be produced than the maximum possible. Non-manufactured goods 50 40 30 20 10 0 A 10 B F Ti 20 30 Manufactured goods •G C D E 40

Figure 1 The production possibility frontier ABCDE is a production possibility frontier. It shows the different combinations of goods which can be produced if all resources are fully and efficiently utilised. The economy can produce at any point on the line. It cannot produce at G because the PPF shows the maximum that can be produced. It can produce within the PPF,00 such as at F, but less will be produced than the maximum possible. Non-manufactured goods 50 40 30 20 10 0 A 10 B F Ti 20 30 Manufactured goods •G C D E 40

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

#27
Figure 1 shows the PPF for an economy that produces Food and Clothes. What is the maximum amount of clothes that the economy can produce if it produces 500 food? A) 360 Clothes B) 144 Clothes C) 48 Clothes D) 0 Clothes
Economics HS Social Studies Unit: 01 Lesson: 01 Interpreting a Production Possibilities Curve 25 20 15 Curve 1 10 Curve 2 5 10 15 20 25 30 35 GUNS (S billions) 1. At which point on the curve is this nation likely to be at war? 2. How many billions of dollars are being spent on domestic goods at this point? On military goods? 3. At which point on the curve is this nation likely to be at peace, but still militarily prepared? 4. At this point, what is the amount of reduction in military spending from the point identified in question 1? 5. At which point is this nation in an apparent recession, underutilizing its resources? 6. What is the recessionary gap in terms of "butter"? What is the recessionary gap in terms of "guns"? 7. Curve 2 represents a decrease in production possibilities. Identify two possible reasons for the leftward shift in the PPC. a. b. C2010, TESCCC 07/01/10 page 24 of 26 BUTTER (S billions)
2. What is a production possibilities frontier (ppf) for an economy? explain your answers with an appropriate diagram.
A ng.cengage.com + Welcome to Johnston Community College Bb Support Materials and Text Chapters Two and Three - .. * MindTap - Cengage Learning >> CENGAGE MINDTAP Q Search this course Homework (Ch 02) 4. Shifts in production possibilities Suppose Japan produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for wheat, an agricultural good, and cars, a capital good. A-Z Drag the production possibilities frontier (PPF) on the graph to show the effects of a technological advance in medicine that allows workers to live longer and have extended careers. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. (?) 360 300 PPF 240 180 At 120 60 PPF 10 20 30 40 50 60 WHEAT (Millions of bushels) O 9 2 9 O E…
Urgent I need the answer quickly please help me.
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)
Under which of the following circumstances a Production Possibility Curve will move to the right? a. Economic resources increased b. Both; economic resources increase and new technolgy develop New technology is developed d. None of these given options C.
A tropical creates a shortage in the item needed in the production of goos B. Explain how this would affect the production possibilities curve. select one ppf shifts inwards PPF shifts outwards Move to a point inside the PPF Move outwards on good A axis only Move inwards on good B axis only Move inward on Good A axis only Move outwards on Good Baxis only
1.a Explain the economic link between scarcity, choice and opportunity cost. 1.b Suppose there are two countries (South Africa and Chile) producing two products(Capital goods and consumer goods) with production possibilities per person inSouth Africa lower than in Chile. Use the PPF to substantiate how the future growthof the two countries will change if South Africa devoted a lot of its resources toproducing capital goods today.
3. Country A and Country B are two countries that each produce t-shirts (T) and sneakers (S). From its available resources and technology Country A can produce 100 t-shirts and 0 sneakers or 0 tshirts and 200 sneakers or any combination of t-shirts and sneakers that sits on Country A’s linear PPF. From its available resources and technology Country B can produce 50 t-shirts and 0 sneaker or 0 t-shirt and 50 sneakers or any combination of t-shirts and sneakers that sits on Country B’s linear PPF. a. On two separate graphs draw the PPF for Country A and Country B. Measure t-shirts on the vertical axis and sneakers on the horizontal axis. b. Write an equation in slope-intercept form for the PPF for Country A. c. Write an equation in slope-intercept form for the PPF for Country B
3. Efficiency in the production possibilities model Suppose Germany produces only two goods: corn and tablets. The following graph shows Germany's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. A B с D E TABLETS (Millions) LL 100 F 80 60 9 20 0 + 0 PPF 0+ Point Inefficient Efficient Unattainable 20 Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. U E U *C * 8 40 60 CORN (Millions of bushels) xx DO D 80 100