Q46How does a straight-line production possibilities boundary differ from a concave boundary?a.The straight-line boundary does not show scarcity, whereas the concave boundary does.b.The concave boundary illustrates constant opportunity costs, whereas the straight-line boundary illustrates decreasing opportunity costs.c.The straight-line boundary shows opportunity cost, whereas the concave boundary does not.d.A straight-line boundary is associated with a command economy, whereas a concave boundary is associated with a free-market economy.e.The straight-line boundary illustrates constant opportunity costs, whereas the concave boundary illustrates increasing opportunity costs.

A production–possibility frontier (PPF), production possibility curve (PPC), production possibility…

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How does a straight-line production possibilities boundary differ from a concave boundary?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter2: Economic Tools And Economic Systems

Section: Chapter Questions

Problem 3.5P

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Question

Q46

How does a straight-line production possibilities boundary differ from a concave boundary?

The straight-line boundary does not show scarcity, whereas the concave boundary does.

The concave boundary illustrates constant opportunity costs, whereas the straight-line boundary illustrates decreasing opportunity costs.

The straight-line boundary shows opportunity cost, whereas the concave boundary does not.

A straight-line boundary is associated with a command economy, whereas a concave boundary is associated with a free-market economy.

The straight-line boundary illustrates constant opportunity costs, whereas the concave boundary illustrates increasing opportunity costs.

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1. Suppose you are a farmer with 20 hectares of land on which you could grow either wheat or barley. You can allocate however much land you want to each crop. a. Draw a Production Possibilities Frontier depicting this situation. b. Explain what a Production Possibilities Frontier is and what the diagram represents, including what points on, below and above the PPF represent. c. Explain why the PPF that you have drawn has the shape that it does. d. Is it possible to use just the PPF to find the best allocation for the crops? Explain.
a. Draw a production possibility frontier, clearly marking the regions of inefficient production, efficient production and unattainable production. b.Illustrate how the slope of the PPF represents opportunity cost. Why is the frontier concave to origin?
A bowed-out production possibility frontier for an economy that produces only meat and potatoes shows that the ______ of potatoes in terms of meat increases as more potatoes are produced and that the opportunity cost of meat in terms of potatoes as more potatoes are produced. A. inherent cost; increases B. opportunity cost; decreases C. opportunity cost; increases D. inherent cost; decreases
PPF
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.
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Q29.