Suppose the Netherlands produces only bikes and scooters. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally effective at producing both scooters and bikes. The shape of the Netherlands's production possibilities frontier (PPF) should reflect the fact that as the Netherlands produces more scooters and fewer bikes, the opportunity cost of producing each additional scooter_ The following graphs show two possible PPFs for the Netherlands's economy: a straight-line PPF (PPF₁) and a bowed-out PPF (PPF₂). BIKES PPF₁ Graph 1 SCOOTERS ? BIKES PPF ₂ Graph 2 SCOOTERS ? Based on the previous description, the trade-off the Netherlands faces between producing scooters and bikes is best represented by

Suppose the Netherlands produces only bikes and scooters. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally effective at producing both scooters and bikes. The shape of the Netherlands's production possibilities frontier (PPF) should reflect the fact that as the Netherlands produces more scooters and fewer bikes, the opportunity cost of producing each additional scooter_ The following graphs show two possible PPFs for the Netherlands's economy: a straight-line PPF (PPF₁) and a bowed-out PPF (PPF₂). BIKES PPF₁ Graph 1 SCOOTERS ? BIKES PPF ₂ Graph 2 SCOOTERS ? Based on the previous description, the trade-off the Netherlands faces between producing scooters and bikes 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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The graph shows the Production Possibility Frontiers of Writ (orange, dotted line) and Greg (green, solid line) when they gather pumpkins or branches individually. Drag and drop the points A, B and C to form the Production Possibility Frontier when Wirt and Greg specialize and exchange the production of branches and pumpkins. Note: Use the circle in the top, left corner of the textbox as the point. Drab Point A as the top left point. Drag Point B to the point at which the joint PPF changes slope. Drag Point C to the bottom right point. Total Branches 6 5 4 3 2 1 O 0 1 2 3 4 5 6 Point A Point B Point C Greg's PPF Wirt's PPF Total Pumpkins
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.
Refer to the accompanying figure. If this economy were currently operating at point D, then in order to make more movies: A Movies (number per year) B D Milk (gallons per year) the first productive resources to switch to making movies should be those with the lowest opportunity cost of making milk. no productive resources would need to switch from making milk to movies because each resource should continue to be used according to its comparative advantage. no productive resources would need to switch from making milk to movies because point D is already efficient. the first productive resources to switch to making movies should be those with the highest opportunity cost of making milk.
Suppose that Karen, Sue, and Peter all work 8 hours a day, and in an hour, each can make one widget or two thingamajigs. Which of the following could correctly describe the shape of the production possibilities frontier graph for this economy? The PPF is an upward sloping straight line The PPF is a horizontal straight line The PPF is a vertical straight line The PPF is a downward sloping straight line None of the above 4
Two neighboring island nations, Seychelles and Mauritius, produce iPad's, coffee, or a combination of both. Suppose that they each have 4 million labor hours available per week for production. The following table gives the amount of each product that can be produced using one hour of labor: Country Mauritius Seychelles Mauritius' opportunity cost of produing 1 iPad is iPads (per hour of labor) 12 of coffee. Therefore, 8 Initially, suppose Mauritius uses 1 million hours per week to produce iPads and 3 million hours per week to produce coffee, while Seycheles uses 3 million hours of labor per week to produce iPads and 1 million hours per week to produce coffee. Consequently, Mauritius produces 12 million iPads and 72 million pounds of coffee, and Seychelles produces 24 million iPads and 32 million pounds of coffee. Assume there are no other countries willing to trade with them. So, if Mauritius and Seychelles don't trade with each other, they can only consume what they can produce using…
The slope of the production possibilities frontier is called
Meanwhile, in the country of Portugal, wool and wine can also be produced according to a linear PPF. However, when all resources are devoted to production of wine, Portugal can produce 100 barrels, but when all resources are devoted to wool production, portugal can produce 50 bushels. What are the opportunity costs in Portugal of producing a barrel of wine?
Please help me explain how the economic concept of scarcity links production possibilities curves and comparative advantage. Explain how scarcity is the common foundation for PPCs and comparative adv
The graph below represents the Production Possibility Frontier for the country of OZ for 2 groups of goods or services: Infrastructure (like bridges and roads) and technology and research. Production Possibility Frontier - Country of Oz 12 10 0 2 4 6 8 10 12 14 16 18 20 22 Infrastructure From a point on the Production Possibility Frontier, the country of OZ can produce more infrastructure projects and more technology and research projects simultaneously but only up to a certain quantity. If the country of OZ is currently producing 15 infrastructure projects and wants to produce 4 more, they would give up 7 research and technology projects. If the country of OZ is currently producing 10 infrastructure projects and wants to produce 5 more, the opportunity cost would be 2 research and technology projects. The country of OZ can produce 15 infr tructure projects and 12 technology and research projects Technology and Research
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 PPF curve shows a curved negative relationship between two goods this means that an increase in the production of one good requires which of the following
The following table shows the hourly output per worker measured as quarts of olive oil and pounds of pasta in Greece and Italy: Output per Hour of Work Olive Oil Pasta Greece Italy The opportunity cost of producing one more quart of olive oil in Greece is The opportunity cost of producing one more quart of olive oil in Italy is The opportunity cost of producing one more pound of pasta in Greece is The opportunity cost of producing one more pound of pasta in Italy is 4 4 2 8 pounds of pasta. (Enter your response rounded to two decimal places.) pounds of pasta. (Enter your response rounded to two decimal places.) quarts of olive oil. (Enter your response rounded to two decimal places.) quarts of olive oil. (Enter your response rounded to two decimal places.)