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Nick, and Tim. Each works 10 hours a day and can produce two services: mowing lawn or wash 1 car; Nick can either mow 1 lawn or vash 2 cars; and Tim can either mow 2| ng table, determine how many lawns will be mowed and how many cars will be washed Lawns Mowed Cars Washed - (A) (B) ity. (C) vhile Nick only washes cars and Tim only mows y cost of washing cars for each worker. Cars ducing a particular service are preferentially used in the production of that service and ossibilities frontier, one worker at a time is transferred from mowing lawns to washing tion possibilities frontier (PPF) for this economy on the following graph. Then use the bi triangle symbol) to identify point B, the orange point (square symbol) to identify point - the graph. PPF

Nick, and Tim. Each works 10 hours a day and can produce two services: mowing lawn or wash 1 car; Nick can either mow 1 lawn or vash 2 cars; and Tim can either mow 2| ng table, determine how many lawns will be mowed and how many cars will be washed Lawns Mowed Cars Washed - (A) (B) ity. (C) vhile Nick only washes cars and Tim only mows y cost of washing cars for each worker. Cars ducing a particular service are preferentially used in the production of that service and ossibilities frontier, one worker at a time is transferred from mowing lawns to washing tion possibilities frontier (PPF) for this economy on the following graph. Then use the bi triangle symbol) to identify point B, the orange point (square symbol) to identify point - the graph. PPF

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4. Production Possibility Frontier An economy consists of three workers: Jake, Nick, and Tim. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Jake can either mow 1 lawn or wash 1 car; Nick can either mow 1 lawn or wash 2 cars; and Tim can either mow 2 lawns or wash 1 car. For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row. Scenario Lawns Mowed Cars Washed All three spend all their time mowing lawns. (A) All three spend all their time washing cars. (B) All three spend half their time on each activity. (C) Jake spends half his time on each activity, while Nick only washes cars and Tim only mows lawns. (D) In the following table, identify the opportunity cost of washing cars for each worker. Worker Opportunity Cost of Washing Cars Jake Nick Tim Assume that the resources best suited to producing a particular service are preferentially used in the production of that service and that as the economy moves down along the production possibilities frontier, one worker at a time is transferred from mowing lawns to washing cars. Using the blue points (circle symbol), graph the production possibilities frontier (PPF) for this economy on the following graph. Then use the black point (plus symbol) to identify point A, the green point (triangle symbol) to identify point B, the orange point (square symbol) to identify point C, and the purple point (diamond symbol) to identify point D on the graph. (?) 50 45 PPF 40 + 35 30 A 25 A 20 15 10 5 10 15 20 25 30 35 40 45 50 D Quantity of Cars Washed True or False: The production possibilities frontier consists of straight-line segments, rather than being smoothly bowed outward throughout, because each worker faces a constant trade-off between mowing lawns and washing cars. O True O False Indicate whether each of the following allocations is efficient or inefficient. Allocation Efficient Inefficient A B D Quantity of Lawrs Mowed
Transcribed Image Text:4. Production Possibility Frontier An economy consists of three workers: Jake, Nick, and Tim. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Jake can either mow 1 lawn or wash 1 car; Nick can either mow 1 lawn or wash 2 cars; and Tim can either mow 2 lawns or wash 1 car. For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row. Scenario Lawns Mowed Cars Washed All three spend all their time mowing lawns. (A) All three spend all their time washing cars. (B) All three spend half their time on each activity. (C) Jake spends half his time on each activity, while Nick only washes cars and Tim only mows lawns. (D) In the following table, identify the opportunity cost of washing cars for each worker. Worker Opportunity Cost of Washing Cars Jake Nick Tim Assume that the resources best suited to producing a particular service are preferentially used in the production of that service and that as the economy moves down along the production possibilities frontier, one worker at a time is transferred from mowing lawns to washing cars. Using the blue points (circle symbol), graph the production possibilities frontier (PPF) for this economy on the following graph. Then use the black point (plus symbol) to identify point A, the green point (triangle symbol) to identify point B, the orange point (square symbol) to identify point C, and the purple point (diamond symbol) to identify point D on the graph. (?) 50 45 PPF 40 + 35 30 A 25 A 20 15 10 5 10 15 20 25 30 35 40 45 50 D Quantity of Cars Washed True or False: The production possibilities frontier consists of straight-line segments, rather than being smoothly bowed outward throughout, because each worker faces a constant trade-off between mowing lawns and washing cars. O True O False Indicate whether each of the following allocations is efficient or inefficient. Allocation Efficient Inefficient A B D Quantity of Lawrs Mowed
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