If it is not possible to increase the output of one good without decreasing the output of the other, when there are only two goods, then this situation would describe a point on a production possibilities frontier for the producer. the outcome can be described as efficient. there is no unemployment of resources. All of these outcomes are correct.

Q: The law referenced in the previous question is based on the fact that: Economic resources are not…

A: The law of scarcity is a fundamental principle in economics that recognizes the limited nature of…

Q: b) If the economy is at production C, what is the opportunity cost of 1 more Missile measured in…

A: Points A, B, and C on the PPF reflect various production levels that may be achieved by effective…

Q: Goods and services are scarce because resources are scarce. Select one: O a. True O b. False

A: Scarcity is the primary concept or reason to study economics as it is the cause of making trade-off…

Q: In the specific model with two consumption goods and labour (mobile) and land and capital (specific…

A: Trade is the export and imports of goods and services between different countries. Imports are the…

Q: Which of the following are examples of opportunity cost?  (please choose all the answers that are…

A: Opportunity cost refers to the best given up values among the alternate in the process of gaining…

Q: The sharp rise in housing prices from 2003 to 2005 was driven by a high level of housing. Select the…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: Assume now that the sacrifice ratio is greater than 1, show what will happen to the shape of the…

A: (1) Suppose that Two goods - Shoes and computer Diminishing marginal return The opportunity cost of…

Q: Which of the following can best be characterized as a subject of microeconomics? O an examination of…

A: Macroeconomics is a branch of economics that focuses on the study of the economy as a whole. It…

Q: Use the scenario to answer the following questions Natasha can produce either 5,000 pounds of cheese…

A: Answer: e (500) Explanation: Opportunity cost is the number of units of a good sacrificed to produce…

Q: As the price rises, the quantity demanded by the buyer will decline and the quantity supplied by…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If we assume that a cafe owner wants to increase the number of people she can serve lunch to and is…

A: Answer: Introduction part: To some extent, all economic resources are  interchangeable.The cafe…

Q: Good b 0 a g bo .f .e h .d Good A Refer to Exhibit 2.2, which shows the production possibilities…

A: PPF is the production possibility frontier.PPF shows the production possibility of two goods in an…

Q: Using a production possibility frontier, an arbitrary price line that does not equate supply and…

A: Production Possibility Frontier is the locus of points of production combination which an economy…

Q: 40.000 C А Robots 5.000 10.000 15.000 In the graph above, if the economy is at point C, it follows…

A: The Production Possibilities Curve (PPC) shows the possible combinations of goods that an economy…

Q: opportunity costs t each tood tem for both Carolyn and Jen Carolyn, the opportunity cost of a…

A: DISCLAIMER “Since you have asked multipart questions, we will solve the first three sub-part…

Q: Due to resource scarcity, O economic activities have opportunity costs generally lower than their…

A: Option C Resource scarcity means that all economic activities have a opportunity cost associated…

Q: Alarm & Tint, Inc., has 10 workers working a total of 400 hours per week. Tinting takes 2 hours per…

A: Production possibility frontier is the boundary of the feasible outputs of the commodities or…

Q: Combinations of goods on the production possibilities curve O can be produced using currently…

A: Correct : can be produced using currently available resources and technology.

Q: In your own words, clearly distinguish and differentiate why economists say all resources are scarce

A: Resources are the set of material, stock, and other assets used in the organizations for smooth and…

Q: Explain what is meant by allocative efficiency and under what conditions is this efficiency…

A: In a marketplace, efficiency refers to the ability of the market to get output with the given…

Q: If the principle of increasing marginal opportunity cost applies to a firm, which of the following…

A: Economic production is analogous to a symphony, in which resources come together to create…

Q: Production at a point inside the production possibilities frontier is unattainable and inefficient…

A: A production possibilities curve shows the various combinations of two goods that an economy can…

Q: If we wanted to make the statement that a particular point on a production possibility ter was DULIT…

A: A point is said to be productive and efficient if it lies on the production possibility frontier.…

Q: Which of the following cannot be determined by using a production possibilities curve? Select the…

A: The PPF is also referred to as the production possibility curve (PPC). It is a key economic concept…

Q: Consider the following Production Possibilities Frontier. Which of the following statement is…

A: A graph known as a Production Possibilities Frontier (PPF) illustrates the various pairings of two…

Q: A point inside a production possibilities frontier OA. is unattainable. OB. indicates that some…

A: Understanding the position of a point inside a production possibilities frontier (PPF) is crucial…

Q: As an economist it is important to know that resources are scarce. Explain what u understand that…

A: Time, money, labour, equipment, land, and raw materials are all limited resources. There are never…

Q: If a good is labour intensive it means that no capital is used in the manufacturing of that good.…

A: The statement is false

Q: Suppose that you have 10 acres of land that is being fully used to grow potatoes. All 10 acres are…

A: Answer: If all the 10 acres of land are equally productive in the production of potatoes and 1…

Q: What is the optimal amount of output that should be produced? O A. 8 B. 9 OC.5

A: The optimal level of output is at point where Marginal revenue or price is equal to Marginal cost.…

Q: If a country (say the UK) has 900 units of labour available, can produce two goods (cars and PCs)…

A: Opportunity cost is defined as the foregone benefit that would have been derived from an option not…

Q: Is this a good example of opportunity cost? Why or why not. “In 2019, I started my small business by…

A: “In 2019, I started my small business by selling prints of my photographs. Now it’s temporarily…

Q: A great nation of Wakanda has two sectors. The largest sector of the economy involves mining…

A: The production possibility frontier Frontier is a graphed curve that shows the possible output of…

Q: Describe two ways labor exerts influence on the economic landscape. Give one example lf a constraint…

A: Labor or we can say that human capital is used in providing a service to the economy, or does the…

Q: Hutch Technology makes computer monitors, which sell for $100 each. What is the opportunity cost of…

A: Opportunity cost: It is the loss of other alternatives when one alternative is chosen.

Q: Which is a good example of an opportunity cost? 1. “To begin, I began selling prints of my pictures…

A: Opportunity cost is the value or the benefit that could have been taken if the other alternative…

Q: s why the market fails

A: Market failure refers to a situation when the market fails to efficiently distributes goods and…

Q: Consider the production possibilities frontier displayed in the figure shown. If society is…

A: The Production Possibilities Frontier (PPF) shows the maximum attainable combinations of two goods…

Q: A city wants to set the price of admission to the ice castle so that everyone can afford to see the…

A: Given:  Direct Cost of admission = $10 Amount at which ticket is sold = $35 True cost is the…

Q: The production possibilities curve can best be described as representing the economics principle of…

A: In economics, the production possibility curve is one of the effective economic measure to be used…

Q: The market system operates via prices. Discuss how through prices a finite resource like crude oil…

A: The sustainability of finite resources within a market system is a complex interplay of economic…

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.