If a PPF is "bowed outward" from the origin, then which of the following can be true? (check all that apply) The opportunity cost of producing another unit of the good on the y-axis decreases in terms of foregoing units of the good on the x-axis that are given up. The opportunity cost of producing another unit of the good on the x-axis increases in terms of foregoing units of the good on the y-axis that are given up. Inputs may be specialized for different uses Each unit of labor isn't equally productive in producing every unit of each good

If a PPF is "bowed outward" from the origin, then which of the following can be true? (check all that apply) The opportunity cost of producing another unit of the good on the y-axis decreases in terms of foregoing units of the good on the x-axis that are given up. The opportunity cost of producing another unit of the good on the x-axis increases in terms of foregoing units of the good on the y-axis that are given up. Inputs may be specialized for different uses Each unit of labor isn't equally productive in producing every unit of each good

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 8SQ

See similar textbooks

Related questions

Q: Alice and Bob are both capable of producing goods X and Y. In one hour, Alice can produce one unit…

A: Alice and Bob are two producers of good X and good Y. Alice produces one unit of each good per hour…

Q: Drawing a production possibilities frontier (PPF) Instructions: Consider an economy than…

A: Producing output outside the production possibility curve is not possible because it requires use of…

Q: Draw a production possibilities frontier (PPF) for oil and food, where food production (Qf) is in…

A: Two countries trade with one another on the basis of differences in factor endowments. The…

Q: The production possibilities frontier (PPF) is a simplified economic model that illustrates the…

A: A production possibility frontier is a graph which depicts various combinations of two goods that…

Q: If the resources used to produce two goods are specialized, then the production possibilities…

Q: a) Draw a production possibilities frontier (PPF) for a society that produces two goods, guns and…

A: The production possibilities frontier (PPF) is a downward sloping curve which is concave to the…

Q: Suppose China produces only cars and trucks. The resources that are used in the production of these…

A: The production possibility frontier (PPF) is a curve that depicts the maximum amounts of two items…

Q: The opportunity cost of moving from point H to point G in the above picture is (specify amount and…

A: Opportunity cost shows the measure of forgone units of one good in acquiring the other. The…

Q: How would the production possibilities curve be impacted? Group of answer choices The PPC would…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: or each of the following separate parts, you are required to draw one or two graphs. Make sure that…

A: ‘Price elasticity’ of a good is the response in the demand of the good as the price of the good…

Q: Take an example of a two-goods economy and explain the concept of opportunity cost with the help of…

A: PPC stands for the production possibility curve. It is a graphichal representation of all possible…

Q: 1. 2. 3. Suppose that the community of Markstown produces two goods: Michelob light beer (MLB) and…

A: The production possibility frontier (PPF) represents the bundles of commodities a community can…

Q: Suppose Poland produces only cars and trucks. The resources that are used in the production of these…

A: A PPF (Production possibility frontier) is a curve that shows various combinations of two goods that…

Q: Table below presents different combinations of a simple economy that uses its resources to produce…

A: The production possibility curve shows all the combinations of two goods that can be produced in an…

Q: In a production possibilities frontier graph, the cost of producing more units of a good is measured…

A: Answer: A production possibilities curve shows the different combinations of two goods that can be…

Q: A) What is Betty Lou’s opportunity cost for 60 Apple Pies (Use Figure 4 above)? B) What is Betty…

A: The loss of a benefit that might have been obtained if the best alternative option had been chosen…

Q: What is the relationship between production costs and comparative advantage? Group of answer…

A: The involvement in more open international trade is always beneficial for an economy because it…

Q: Discuss the differences between the constant opportunity cost and the increasing opportunity cost in…

A: PPC shows two goods possible combinations which can be produced with the given resources and…

Q: Acme supply is analyzing a Production Possibilities Curve that compares the production of wrenches(…

A: Change in Y variable (Pliers) divided by change in X variable (Wrenches) is the slope of the PPF…

Q: Consider a production possibility frontier with jeans on the vertical axis and shoes on the…

A: Answer: If the jeans are shown on the vertical axis and the economy moves towards to frontier closer…

Q: If PPC shifts to the left, it means: (a) Resource are destroyed (b) More unemployment (c) Use of…

A: The tradeoffs being associated with the allocation of resources between the levels of production of…

Q: COUNTRY A COUNTRY B 7 2 TABLES 4 DESK 1 b. Using the information provided in the table below, answer…

A: "The production possibility frontier curve shows that the possible combination of two goods produced…

Q: Consider the production possibility frontier (PPF) illustrated in the figure to the right. If Px =…

A: This can be described as a concept that shows the graphical representation that shows the different…

Q: a) The bowed outward PPF shows trade -off in production and cost of the good. opportunity

A: As per the guidelines, in case of multiple questions we are allowed to answer the first question…

Q: Step 1: Draw a production possibilities frontier (PPF) for this economy. Label blueberries on the…

A: A Production Possibility Frontier (PPF) is a graph that shows all the possible combinations of two…

Q: Scenario1: a. If your company can make two goods, use a numerical table and list different…

A: (a). Let the business produce good X and good Y. The following is a list of production…

Q: A country's production possibilities frontier will be a straight line if Group of answer choices the…

A: Within the function, consumer PPC is limited and constrained. It illustrates a tradeoff between…

Q: Q2. What does point Y represent on the PPC? Production Possibllity Frontier (PPF) Product B: Cotton…

A: PPC indicates all the feasible combinations of two goods that can be produced.

Q: Use the PPF to answer the following questions: (a) At point F, how many sweaters are being…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: An economy is said to have a comparative advantage in the production of a good if it can: produce…

A: The question is asking us to identify the correct definition of comparative advantage in the context…

Concept explainers

Production Possibility Analysis

The production possibility analysis comprises the production possibility frontier (PPF), or the production possibility curve (PPC) to evaluate a society or even an economy. The production possibility curve represents the cost that the society has to incur for choosing between two different commodities. It is assumed that an economy that operates at the highest production possibility curve is known to have a better standard of living which the society can achieve for producing the optimum level of output which it can produce given a specified number of factors of production or inputs or resources.

Question

If a PPF is "bowed outward" from the origin, then which of the following can be true? (check all that apply)

The opportunity cost of producing another unit of the good on the y-axis decreases in terms of foregoing units of the good on the x-axis that are given up.

The opportunity cost of producing another unit of the good on the x-axis increases in terms of foregoing units of the good on the y-axis that are given up.

Inputs may be specialized for different uses

Each unit of labor isn't equally productive in producing every unit of each good

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define production possibility frontier(PPF)

VIEW

Step 2: Choose the correct options.

VIEW

Step 3: Justify the incorrect option.

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Acme supply is analyzing a Production Possibilities Curve that compares the production of wrenches( x-axis) to the production of pliers (Y-axis). If the slope of the PPC is 2, the opportunity cost of producing pliers in terms of wrenches is
a) The bowed outward PPF shows trade -off in production and cost of the good. b) If an economy discovers a new natural resource, its PPF would shift c) All the points inside the PPF indicate productively d) Bowed outward PPF shows that there is opportunity in the skill level of the worker. e) Before a country engages in international trade, it specializes in a good where it has advantage.
Draw a production possibilities frontier (PPF) for oil and food, where food production (Qf) is in the vertical axis and oil production (Qo) is in the horizontal axis. Draw an initial production point on the PPF where the slope of the PPF equals minus the relative price of oil. Label this point 1. If the price of oil on world markets rises sharply due to political reasons, determine the change in production; label the new point on the PPF with a 2. How does this change in the price of oil affect the income distribution in the oil producing countries, assuming there are capital owners and workers involved in the production process?
How would the production possibilities curve be impacted? Group of answer choices The PPC would shift outward The PPC would shift inward The point on the PPC would move closer to the curve The point on the PPC would move closer to the origin HERE ARE THE QUESTIONS: Explain how each of the following situations would affect a nation’s production possibilities curve. A law is passed which makes community college tuition free for all U.S. citizens. An unexpectedly mild spring results in a bumper crop of citrus fruit in both Florida and California. A change in immigration laws significantly decreases the number of immigrant workers entering the country. The amount of time that unemployed workers can collect unemployment insurance is decreased from 96 weeks to 26 weeks following the end of a recession, resulting in workers remaining unemployed for a shorter period of time. An innovation in desalinization technology allows for the more efficient conversion of salt water…
A country's production possibilities frontier will be a straight line if Group of answer choices the economy is producing efficiently. increasing the production of one good by x units entails no opportunity cost in terms of the other good. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good. the economy is engaged in trade with at least one other economy.
Alice and Bob are both capable of producing goods X and Y. In one hour, Alice can produce one unit of each good. In the same amount of time, Bob can produce two units of each good. If Alice and Bob have access to the same amount of time, calculate the difference between the slope of Alice's PPF and the slope of Bob's PPF. (round to two decimal places if necessary)
Suppose China produces only cars and trucks. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally useful in producing both trucks and cars. The shape of China's production possibilities frontier (PPF) should reflect the fact that as China produces more trucks and fewer cars, the opportunity cost of producing each additional truck The following graphs show two possible PPFS for China's economy: a straight-line PPF (PPF ) and a bowed-out PPF (PPF2). Graph 1 Graph 2 PPF2 PPF, CARS CARS
In a production possibilities frontier graph, the cost of producing more units of a good is measured by the A) dollar value of the resources used to produce the good. B) amount of the other good or service that must be forgone. dollar value of the additional output. area in the arc between the PPF and a straight line drawn between the starting point and the ending point. E) None of these answers is correct.
Consider the production possibility frontier (PPF) illustrated in the figure to the right. If Px = 50.00 and Py = 25.00, how many units of good X and good Y will be produced? The firm should produce units of good X and numeric responses using integers.) units of good Y. (Enter ▪▪▪▪▪ Good Y 90- 80- 70- 60- 50- 40- 30- 20- 10- 0 10 20 30 40 50 Good X 60 70 PPF 80 90 Q
a) Draw a production possibilities frontier (PPF) for a society that produces two goods, guns and wheat. Suppose this society has two political parties, party R (who want a strong military) and party L (who want a smaller military). Show points on your diagram that party R and party L chooses. b) Show graphically whether your PPF will change if all the resources used for both the goods were equally suitable for production of guns and wheat? c) Assuming that b stands and if all the resources are used for the production of guns, 20 guns can be produced and if all the resources are used for production of wheat, 80 units of wheat can be produced, then what is the opportunity cost of producing one gun?
or each of the following separate parts, you are required to draw one or two graphs. Make sure that you label both axes correctly. (a) Consider the demand for gasoline. Suppose more substitutes for gasoline are available. Draw a graph to show how the price of elasticity of demand for gasoline changes. (b) Country A produces two goods: chicken wings and pizzas. If unemployment rate increases, draw how the PPF of country A will change. Assume that opportunity costs are increasing. (c) Consider the market for new houses. Suppose the prices of the materials for building houses increase. Draw a graph to show how the equilibrium of market for new houses changes.
Q.1 Table below presents different combinations of a simple economy that uses its resources to produce guns or/and butter Option Butter (tonnes) Guns (units) A 0 15 B 1 14 C 2 12 D 3 9 E 4 5 F 5 0 a) Construct the PPC by drawing guns production on the vertical axis and butter production on the horizontal axis and determine its slope. b) Consider that the economy is producing at option C. Explain the concept of the opportunity cost if the economy increased the production of butter and moved its production to point D c) Calculate the opportunity cost if there is a move from C to D and later a further move from D to E d) Is the opportunity cost increasing or decreasing as the economy produces more butter? Fully explain why