2. Below is a production possibilities frontier (PPF) for Happyland, acountry that produces onlytwo goods- wine and cheese.winecheesea) Explain what the production possibilities frontier is and how it illustrates scarcity.b) What happens to the marginal opportunity costof cheese production in Happyland as thecountry increases its cheese production? (increase, decrease, unchanged or indeterminate?)Explain how you can tell this from the PPFand why it happens.c) Briefly describe two specific policies the government of Happyland could undertake to shiftout their PPF in future periods. (By specific policies, I mean something they can actually doto change productivity for either or both of these goods. "Increase resources," for example, isnot a specific policy. What resources and what type of policy could increase the resources usedfor either of these products?)

The production capacity of a nation can be depicted in the production possibility frontier. Through…

Is a production possibilities frontier (PPF) for Happyland, a country that produces only two goods-wine and cheese. wine cheese a) Explain what the production possibilities frontier is and how it illustrates scarcity. b) What happens to the marginal opportunity cost of cheese production in Happyland as the Country increases its cheese production? (increase, decrease, unchanged or indeterminate?)

Is a production possibilities frontier (PPF) for Happyland, a country that produces only two goods-wine and cheese. wine cheese a) Explain what the production possibilities frontier is and how it illustrates scarcity. b) What happens to the marginal opportunity cost of cheese production in Happyland as the Country increases its cheese production? (increase, decrease, unchanged or indeterminate?)

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

Introduction to the Production Possibilities Curve (PPC) As you know, the basic economic problem is scarcity. Since we do not have enough scarce resources to satisfy everyone's needs and wants, we all have to make choices. We must choose how to spend our time, our energy, our money, and our material possessions, and for every choice that is made, a cost is suffered. The relationship between choice and cost can be shown in a graph called a production possibilities curve, or PPC. For example, consider a student who has 4 hours of free time in the evening. He or she can choose to spend some, all, or none of those 4 hours studying for a test the following day. He or she could also use the time to catch up on sleep. These choices can be graphed: Choice A - spend all 4 hours studying Choice B- spend 2 hours studying, and 2 hours getting extra sleep Choice C- spend all 4 hours sleeping Of course, other combinations of the 4 hours exist. The student could study for 3.5 hours, and get an extra…
12. How are scarcity and shortage different from each other? a) scarcity affects parts of society and shortage affects everyone b) scarcity affects evryone and shortage affects parts of society c)Scarcity is temporary and shortage is permantent d) scarcity is permanent and shortage is temporary
08. What are the relative prices (opportunity costs) of wine and cloth? a) wine costs 1/2 yard of cloth per bottle in England b) cloth costs 1/2 bottle of wine/yard in England c) cloth costs 4 man-hours/yard in Portugal d) cloth costs 2 bottles of wine/yard in Portugal e) wine costs 3 bottles of wine/yard in Portugal
The graph to the right depicts an economy, Home, which produces flowers and soybeans. Its production possibilities frontier is shown as TT. One of Home's isovalue lines is also shown as VV. Ps = $2 ... the price of a unit of soybeans Q = 5 ... the number of units of soybeans currently being produced at point X P $2... the price of a unit of flowers = Q₁ = 5... the number of units of flowers currently being produced at point X. What is the significance of Home operating at point X on the graph to the right? A. It maximizes Home's value of output. B. It minimizes Home's total cost of production. OC. It maximizes Home's profit. OD. It maximizes the utility of Home consumers. C Production of soybeans, Qs 16- 15- 14- 13- 12- 11- 10- 7- Home Production 6- ☑ 5- 4- 3- 2- 1- 0- TT ⚫JVV 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Flower production, Qf
i need help with this question 14
Based on the figure attached, please answer below questions What this figure represents. Explain. How does the above curve illustrate the tradeoff we must make to increase food production
A) What is Maria’s opportunity cost to obtain 20 cartons of Blueberries (Use Figure 3 above)? B) What is Maria’s opportunity cost for 10 cartons of Strawberries (Use Figure 3 above)? C) What is Maria’s opportunity cost for 1 carton of Strawberries (Use Figure 3 above)? Hint: Review Problems 10-19 (Session 1 Practice Problems)
i need help with this question
An economy will be operating on a point inside of its production possibilities frontier if there is inefficiency in resource allocations.what is meant by inefficiency ?you may find it helpful to use an example in your answer.
Consider a simple economy which produces two goods; pizzas and tractors. Using the production possibilities boundary and graphs for the pizza and tractor market show and explain how the precise allocatively and productively efficient point on the production possibilities boundary can be determined. Please draw a graph to show, not just write step by step.
PLEASE SHOW ME HOW TO DO THE RIGHT CALCULATIONS.
Question 6 Listen Efficient resource allocation should be accomplished when any production of a product shows the marginal benefit outweighs marginal cost of its output. 1) True 2) False Question 7 ) Listen If we say that two variables are inversely related, this means that an increase in one variable is associated with a decrease in the other. 1) True 2) False Question 8 ) Listen Consider the problem Amy faces of how to allocate her weekly allowance between books and videos. An increase in Amy's allowance will a) shift her budget line to the right b) rotate her budget line, allowing her to buy more videos but not more books c) rotate her budget line, allowing her to buy more books but not more videos O d) shift her budget line to the left