In the production possibilities frontier depicted in the figure, which of the following combinations of hats and bananas is unattainable? OA. 4 million pounds of bananas and 4 million hats OB. 1 million pounds of bananas and 3 million hats OC. 2 million pounds of bananas and 5 million hats. OD. 0 pounds of bananas and 6 million hats Hats (millions per year) 65 4 3 2 1 0 1 2 4 6 3 5 Bananas (millions of pounds per year]

In the production possibilities frontier depicted in the figure, which of the following combinations of hats and bananas is unattainable? OA. 4 million pounds of bananas and 4 million hats OB. 1 million pounds of bananas and 3 million hats OC. 2 million pounds of bananas and 5 million hats. OD. 0 pounds of bananas and 6 million hats Hats (millions per year) 65 4 3 2 1 0 1 2 4 6 3 5 Bananas (millions of pounds per year]

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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8. A small bakery makes baguettes and muffins. With the resources available (workers, flour, machines) this bakery can produce either 1500 baguettes or 2000 muffins per day. a. What is the opportunity cost of an extra muffin in terms of baguettes? b. Assume that production is currently 1200 muffins and 600 baguettes. If the bakery wanted to expand its muffin production to 1300 muffins per day, how many baguettes would be baked?
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R Imagine that it costs $40 in the United States to produce one ton of soybeans and transport them to market, while it costs $30 in Brazil to produce one ton of soybeans and transport them to market Imagine that it costs $20,000 in the United States to produce one automobile and transport it to maket, while costs $10,000 in Brazil to produce one automobile and transport it to market. Which of the following four arrangements would be most efficient? (Hint: Derived OC from PPF (production) = 1/OC derived from costs to make ) a. The United States should produce everything, since it can produce both soybeans and automobiles better than Brazil can produce them. Ob. Brazil should specialize and produce only automobiles. The United States should specialize and produce only soybeans. Then the two countries should trade with each other. Brazil will send automobiles to the United States, while the United States sends soybeans to the Brazil. Oc. The United States should specialize and produce…
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QUESTION 11 Figure 2-16 Gadgets 120- 110+ 100 90+ 80 + 70 + 60 8 50 2222 40+ 30 20 10 + A O 3. 8 D 10 20 30 40 50 60 70 80 90 100 Widgets Refer to Figure 2-16. Suppose this economy is producing at point B. Which of the following statements would bes explain this situation? a. The economy is getting all it can from the scarce resources available. b. The economy's available technology prevents it from producing more of either product. c. The economy does not have enough resources to produce more of either product. d. There is widespread unemployment in the economy.