Suppose China produces only cars and trucks. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally useful in producing both trucks and cars. The shape of China's production possibilities frontier (PPF) should reflect the fact that as China produces more trucks and fewer cars, the opportunity cost of producing each additional truck The following graphs show two possible PPFS for China's economy: a straight-line PPF (PPF ) and a bowed-out PPF (PPF2). Graph 2 Graph 1 PPF2 PPF1 CARS CARS

Suppose China produces only cars and trucks. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally useful in producing both trucks and cars. The shape of China's production possibilities frontier (PPF) should reflect the fact that as China produces more trucks and fewer cars, the opportunity cost of producing each additional truck The following graphs show two possible PPFS for China's economy: a straight-line PPF (PPF ) and a bowed-out PPF (PPF2). Graph 2 Graph 1 PPF2 PPF1 CARS CARS

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the figure below to answer the following questions. What is the opportunity cost of increasing investment from 6 units to 8 units? Production Possibilities 10 10 CONSUMER GOODS (units per time) INVESTMENT GOODS (units per time)
Refer to the information provided in Figure 1 below. Which of the following causes the ppf to shift from ppf2 to ppf3? Group of answer choices Technological progress An increase in the labor force An increase in capital stock All of the above
If a PPF is "bowed outward" from the origin, then which of the following can be true? (check all that apply) The opportunity cost of producing another unit of the good on the y-axis decreases in terms of foregoing units of the good on the x-axis that are given up. The opportunity cost of producing another unit of the good on the x-axis increases in terms of foregoing units of the good on the y-axis that are given up. Inputs may be specialized for different uses Each unit of labor isn't equally productive in producing every unit of each good
The accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before?
Suppose the fictional country of Everglades produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for millet, an agricultural good, and telephoto lenses, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a long drought that reduces the amount of water available for farmers to use for irrigation. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. TELEPHOTO LENSES (Thousands) 360 300 240 100 120 60 . 10 PPF 20 30 40 MILLET (Millions of bushels) 50 60 PPF
A) What is the opportunity cost of moving from Point A to Point C? 4) What is the opportunity cost of moving from Point B to Point A? B) Is it possible to increase the quantity of cars produced and also increase the quantity of computers produced at the same time by moving from one point to another ON the production possibilities curve? Briefly explain your position. C) Is it possible to increase the quantity of cars produced and also increase the quantity of computers produced at the same time by moving from a point inside the production possibilities curve to a point ON the production possibilities curve? Briefly explain your position. D) What can cause a movement from Point C to Point D. Briefly explain your position. 8) What can cause a movement from Point C to Point B. Briefly explain your position.
Consider Economia, a nation that produces only clothes and food. On their straight-line PPF, food is measured on the horizontal axis and clothes are measured on the vertical axis. If Economia produces no food, it can produce 1200 units of clothing; if it produces no clothing, it can produce 4800 units of food. Calculate the slope of the nation's PPF. Economia would like to produce one more unit of food. To do so, it must sacrifice how many units of clothing?
Assume an economy producing only two goods (shoes and computers) with a fixed amount of productive resources and technology and employing all its productive resources to the maximum.Production in this economy is subjected to the law of diminishing marginal returns and resourcesare assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers andvice versa is 1. On the basis of the foregoing assumptions, answer the following questions: What happens to the PPF when the economy discovers an improved technology for producing shoes?
Question 3 The U.S. economy's Production Possibilities Frontier is made up of two goods: oranges and automobiles. The U.S. economy moves from point A, where it produces 100 oranges and 200 cars, to point B, where it produces 200 oranges and 150 cars. It follows that Point A is an inefficient point. Point B may be an inefficient point There is not enough information to answer the question Point B is an inefficient point Question 5 Which of the following statements are false? 1. If scarcity did not exist, then neither would the Production Possibilities Frontier. II. All Production Possibilities Frontiers are bowed out from the origin. III. All Production Possibilities Frontiers are made up of two goods or services. IV. Opportunity cost can not be illustrated with the Production Possibility Frontier. OL True statement. III. IV II and IV Question 16 Which of the following will have no impact on the demand for Yogurtland frozen yogurt in San Diego? A change in the price of frozen yogurt…
Assume the economy can produce either sports utility vehicles (SUVS) or minivans. The graph below depicts the current production possibilities frontier (PPF). Suppose several new factories are built. Move the end points of the PPF below to show how the PPF changes. Assume that the factory construction affects the economy's ability to produce both minivans and SUVs. Quantity of minivans Quantity of SUVs PPF This is an example of: economic stagnation. economic recession economic contraction. economic growth.
c. Suppose a small country produces only food and clothing. An earthquake destroys many of the clothing factories, but the ability to produce food is unaffected. Use the 3-point-curve drawing tool to draw a new production possibilities boundary on the graph on the right, labeled c, reflecting the change in the clothing factories. Properly label this line. Place end points one on horizontal and one on vertical axes. Carefully follow the instructions above, and only draw the required objects. Tonnes of Clothing Per Year PPBO Tonnes of Food Per Year
The figure above shows a country's production possibility frontier (PPFA). В PPFA PPFB The country's PPF shifts from PPFA to PPFB, and moves from Point 'A' to Point 'B'. Which event could explain this move? O The country acquired new technology in its major industries. O The country is recovering from a recession. The country decreases its capital-to-labor ratio. O The country utilizes its excess labor. Match each letter to the input it represents. Choose ] Human capital Labor Natural capital L Animals Natural resources and labor Labor and land Land and natural resources H Physical Capital Entrepreneurship/ Automation K Choose ] A Choose ] Use the lecture video and slides to fill in the blanks.The catch-up effect is why poor countries grow faster than rich ones. This is because developing countries to make their inputs more productive; whereas developed countries must to increase growth.