esOn average, households in China save 40 percent of their annual income each year, whereas households in the United States saveless than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in the United States.Use graphical analysis of "present goods" versus "future goods" to explain the differences in growth rates.Goods for the future (Capital)PPC310090-807060-50-40-30-20-1000Production Possibilities(United States)PPC₂PPC₁B10 20 30 40 50A6070Goods for the present80 90 100Future Goods10090-80-7060-50+4030-20-10-0PPC3PPC₂PPC₁B0 1020Instructions: Refer to the diagram on the left.Which point best represents the combination of present and future goods in the U.S.? (Click to select)Which dashed production possibilities curve best represents future growth in the U.S.?(Click to select)Instructions: Refer to the diagram on the right.Which point best represents the combination of present and future goods in China? (Click to select)Which dashed production possibilities curve best represents future growth in China? (Click to select)Production Possibilities30(China)40 50 60 70Present Goods8090 100

The production possibility frontier highlights the total number of goods that the economy could…

On average, households in China save 40 percent of their annual income each year, whereas households in the United States save less than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in the United States. Use graphical analysis of "present goods" versus "future goods" to explain the differences in growth rates. Goods for the future PPC3 100 90- 80 70 60- 50- 40- 30- 20- 10 0 0 Production Possibilities (United States) (Capital) PPC₂ PPC₁ B A 10 20 30 40 50 60 70 80 90 100 Goods for the present Instructions: Refer to the diagram on the left. Which point best represents the combination of present and future goods in the U.S.? Which dashed production possibilities curve best represents future growth in the U.S.? Instructions: Refer to the diagram on the right. Which point best represents the combination of present and future goods in China? Which dashed production possibilities curve best represents future growth in China? Future Goods 100 90- 80 70 60- 50- 40- 30- 20- 10- 0 PPC3 PPC2 PPC₁ B 0 10 20 (Click to select) (Click to select) (Click to select) (Click to select) # Production Possibilities 30 (China) 40 50 60 70 Present Goods 80 90 100

On average, households in China save 40 percent of their annual income each year, whereas households in the United States save less than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in the United States. Use graphical analysis of "present goods" versus "future goods" to explain the differences in growth rates. Goods for the future PPC3 100 90- 80 70 60- 50- 40- 30- 20- 10 0 0 Production Possibilities (United States) (Capital) PPC₂ PPC₁ B A 10 20 30 40 50 60 70 80 90 100 Goods for the present Instructions: Refer to the diagram on the left. Which point best represents the combination of present and future goods in the U.S.? Which dashed production possibilities curve best represents future growth in the U.S.? Instructions: Refer to the diagram on the right. Which point best represents the combination of present and future goods in China? Which dashed production possibilities curve best represents future growth in China? Future Goods 100 90- 80 70 60- 50- 40- 30- 20- 10- 0 PPC3 PPC2 PPC₁ B 0 10 20 (Click to select) (Click to select) (Click to select) (Click to select) # Production Possibilities 30 (China) 40 50 60 70 Present Goods 80 90 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

es
On average, households in China save 40 percent of their annual income each year, whereas households in the United States save
less than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in the United States.
Use graphical analysis of "present goods" versus "future goods" to explain the differences in growth rates.
Goods for the future (Capital)
PPC3
100
90-
80
70
60-
50-
40-
30-
20-
10
0
0
Production Possibilities
(United States)
PPC₂
PPC₁
B
10 20 30 40 50
A
60
70
Goods for the present
80 90 100
Future Goods
100
90-
80-
70
60-
50+
40
30-
20-
10-
0
PPC3
PPC₂
PPC₁
B
0 10
20
Instructions: Refer to the diagram on the left.
Which point best represents the combination of present and future goods in the U.S.? (Click to select)
Which dashed production possibilities curve best represents future growth in the U.S.?(Click to select)
Instructions: Refer to the diagram on the right.
Which point best represents the combination of present and future goods in China? (Click to select)
Which dashed production possibilities curve best represents future growth in China? (Click to select)
Production Possibilities
30
(China)
40 50 60 70
Present Goods
80
90 100

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