og and Study ToolsOptionsge Success Tipser Success Tips7.Specialization and production possibilitiesSuppose Germany produces only camcorders and trucks. The resources that are used in the production of these two goods are specialized-that is,some resources are more suitable for producing camcorders than trucks, whereas others are mare suitable for producing trucks than camcordersThe shape of Germany's production possibilities frontier (PP) should reflect the fact that as Germany produces more tricks and fewer camcorders,the opportunity cost of producing each additional truck,The following graphs show be possible PPPs for Germany's economy: a straight-line PPF (PPF) and a bowed out PP (PPP))CAMCORDERSTRUCKSCAMCORDERSpGraph 2TRUCKSBased on the previous description, the tradeoff Germany faces between producing trucks and camcorders is best represented byA-21DPcorporationstments tocoreto earn arelativelynd to othermarket

A Production Possibilities Frontier (PPF) is a graph depicting the maximum combinations of two…

Suppose Germany produces only camcorders and trucks. The resources that are used in the production of these two goods are specialized-that is, some resources are more suitable for producing camcorders than trucks, whereas others are mare suitable for producing trucks than camcorders The shape of Germany's production possibilities frontier (PPP) should reffect the fact that as Germany produces more trucks and fewer camorders, the opportunity cost of producing each additional truck, The following graphs show be possible PPs for Germany's economy a straight-tine PPF (PPP) and a bowed out PP (PPP) CAMCORDERS Graph TRUCKS (2) CAMCORDERS Graph 2 TRUCKS ? Based on the previous description, the tradeoff Germany faces between producing trucks and camcorders is best represented by

Suppose Germany produces only camcorders and trucks. The resources that are used in the production of these two goods are specialized-that is, some resources are more suitable for producing camcorders than trucks, whereas others are mare suitable for producing trucks than camcorders The shape of Germany's production possibilities frontier (PPP) should reffect the fact that as Germany produces more trucks and fewer camorders, the opportunity cost of producing each additional truck, The following graphs show be possible PPs for Germany's economy a straight-tine PPF (PPP) and a bowed out PP (PPP) CAMCORDERS Graph TRUCKS (2) CAMCORDERS Graph 2 TRUCKS ? Based on the previous description, the tradeoff Germany faces between producing trucks and camcorders is best represented by

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Ron can either workout or make sushi rolls. It takes him 40 minutes to finish 1 workout and 20 minutes to make 1 sushi roll. If he has 120 minutes to do these two activities, what is the equation of the production possibility frontier (PPF) that describes the tradeoff between these two activities? (Assume workouts are on the x axis and sushi rolls are on the y axis) A y=6-2x B y=3-0.5x C y=3-2x D y=6-0.5x
The following graphs show the production possibilities frontiers (PPFS) for Shenandoah and Denali. Both countries produce almonds and basil, each initially (i.e., before specialization and trade) producing 18 million pounds of almonds and 9 million pounds of basil, as indicated by the grey stars marked with the letter A. BASIL (Millions of pounds) 48 42 36 30 24 18 PPF ୯ 12 6 Cả 0 0 I I 6 Shenandoah 18,9 12 18 24 30 36 ALMONDS (Millions of pounds) 42 48 BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF 6 Denali 12 18 24 30 36 42 48 ALMONDS (Millions of pounds) ? Shenandoah has a comparative advantage in the production of , while Denali has a comparative advantage in the production of . Suppose that Shenandoah and Denali specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of basil. million pounds of almonds and
The graph to the right depicts an economy, Home, that produces both flowers and soybeans. Flowers are the labor intensive good and soybeans are the land intensive good. Home presently exports flowers. The graph also indicates Home's optimal point of production, X. Suppose that Home has acquired more land in which it can now produce 12 units of soybeans if all land were devoted toward its production. Using the three-point curved line drawing tool, draw the new production possibilities frontier that indicates this biased growth of land in Home. Properly label this curve. Carefully follow the instructions above and only draw the required object. The growth biased toward land causes OA. export-biased growth. O B. a decrease in the relative price of flowers. OC. a rightward shift of the relative supply curve. O D. import-biased growth. 16- 15- 14- 13- 12- 11- 10- 9- 7- 6- 5- Growth of a Factor Soybean output VV TT 7 8 9 10 11 12 13 14 15 16 Flower output €
Suppose the United States produces only two goods: alfalfa and computers. The following graph shows the United States’s current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, attainable, or unattainable. Check all that apply. (refer to screenshot for table and graph)
Suppose the fictional country of Biscayne produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for sorghum, an agricultural good, and electric scooters, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a time-saving innovation in the manufacturing of electric scooters. 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. ELECTRIC SCOOTERS (Thousands) 180 150 120 90 30 0 30 60 90 PPF 120 SORGHUM (Millions of bushels) 150 180 бо PPF ?
When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Glacier and Rainier. Both countries produce corn and basil, each initially (i.e., before specialization and trade) producing 18 million pounds of corn and 9 million pounds of basil, as indicated by the grey stars marked with the letter A. BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF 6 Glacier A 12 18 24 30 36 CORN (Millions of pounds) 42 48 ? BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF I + 6 Rainier 12 18 24 30 36 CORN (Millions of pounds) I 42 48 (?) Glacier has a comparative advantage in the production of while Rainier has a comparative advantage in the production of Suppose that Glacier and Rainier specialize in the production…
Suppose a small economy produces only two goods: apples and oranges. The production possibilities frontier (PPF) for this economy is given by the following equation: PPF: 5A + 3O = 60, where A represents the quantity of apples produced and O represents the quantity of oranges produced. Calculate the opportunity cost of producing one additional apple.
Suppose there exist two imaginary countries, Sequoia and Yosemite. Their labor forces are each capable of supplying four million hours per day that can be used to produce chinos, pistachios, or some combination of the two. The following table shows the amount of chinos or pistachios that can be produced by one hour of labor. Country Sequoia Yosemite Chinos Pistachios (Pairs per hour of labor) (Pounds per hour of labor) 4 16 10 is 5 Suppose that initially Yosemite uses 1 million hours of labor per day to produce chinos and 3 million hours per day to produce pistachios, while Sequoia uses 3 million hours of labor per day to produce chinos and 1 million hours per day to produce pistachios. As a result, Sequoia produces 12 million pairs of chinos and 16 million pounds of pistachios, and Yosemite produces 5 million pairs of chinos and 30 million pounds of pistachios. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each…
This question is a file-upload question. Work your answer in a piece of paper, take a picture with your phone and upload the file. Using the table below answer the following: Points Soda Pizza A 10 В 1 6 3 a) Draw a PPF map (put soda in the vertical axis and pizza in the horizontal axis), showing all the points on the PPF. b) What is the opportunity cost of an extra pizza when you are on segment AB? What about when you are at segment CD? (i.e., how many sodas you have to give up in order to get an extra pizza? SHOW YOUR WORK!) c) What is your PPF's shape? Is it a straight line or does it have a bowed outward shape? Justify! d) Suppose that there is a new technology that affects ONLY the production of soda. Illustrate this effect on your PPF map.
A nation’s residents can allocate their scarce resources either to producing consumption goods or to producing human capital – that is providing themselves with training and education. The table below displays the production possibilities for this nation: Production Combination Units of Consumption Goods Units of Human Capital A 0 100 B 10 97 C 20 90 D 30 75 E 40 55 F 50 30 G 60 0 Suppose that the nation’s residents currently produce combination “A”. What is the opportunity cost of increasing production of consumption goods by 10 units? By 60 units? Does the law of increasing additional cost hold true for this nation? Why or why not?
Question 2. Imagine the country of Zed, which has the following production possibilities curve: Tanks Noodles 0 51 100 45 200 38 300 30 400 21 500 11 600 0 a) What is the opportunity cost between tanks and noodles? Is it constant?Graph the ppc. b) True, false, uncertain, and explain: “This economy should produce 30 noodles and 300 tanks because that is the most even distribution of resources between the two goods.”
Consider two neighboring island countries called Arcadia and Euphoria. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Country Arcadia Euphoria Rye (Bushels per hour of labor) 8 5 Jeans (Pairs per hour of labor) 16 20 Initially, suppose Arcadia uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Euphoria uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Arcadia produces 8 million bushels of rye and 48 million pairs of jeans, and Euphoria produces 15 million bushels of rye and 20 million pairs of jeans. Assume there are no other countries willing to trade goods, so in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces. of jeans, and…