4. Economic growth and PPCSThe blue (inner) curve on the following graph shows the current production possibilities curve (PPC) for the economy of Econoland, and the green(outer) curve shows the PPC for Econoland next year if the economy were to operate at point B today. That is, investment choices today impact thegrowth of the economy, and thus the PPC for next year.PPCNext YearPPCTodayCAPITAL GOODSCONSUMPTION GOODS Suppose that this year, the economy is operating at point B, but then a technological advance occurs that enables greater production of either capitalgoods or consumption goods with the same resources. On the following graph, the PPC that best describes the Econoland economy next year is. (Note: The blue and green PPCS are the same as on the previous graph.)PPCNext YearPPCTodayPPC2PPC,PPC,CAPITAL GOODSCONSUMPTION GOODS

The production possibility curve (PPC) is a locus of the combination of two goods that an economy…

Answered: The blue (inner) curve on the following…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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B1 and B2 are both members of the pit crew for a famous team in Formula One autoracing. B1 takes 4 seconds to refuel the car and 2 seconds to replace a tire. B2 takes 6 seconds to refuel the car and 2 seconds to replace a tire. a) Create an opportunity costs table. (Remember: 1 output/resource to get the OC). Do not make a big table. b) Can B1 and B2 benefit for specialization and trade? Explain the basis of specialization and trade. Maximum of 2 sentences. c) Who has an absolute advantage in the refuelling the car and replacing a tire? Based from the given, explain briefly. d) Who has a comparative advantage in the refuelling the car and replacing a tire? Based from the opportunity cost table, explain briefly. e) If both members decided to trade with each other in terms of their roles, which role will each one give the other? Based from the opportunity cost table, explain briefly.
Exhibit 2-18 Production possibilities curves CONSUMPTION GOODS PRODUCTION Year X B CAPITAL GOODS PRODUCTION Year Y In Exhibit 2-18, the production possibilities curves for a country are shown for Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This country: O is producing the same number of capital goods in both years. O is producing the same number of consumption goods in both years. O has shown no growth between Year X and Year Y. Ohas higher unemployment in Year X than in Year Y.
13. Assuming the PPF is shifting from PPFo to PPFn, which of the following explains the cause or causes of the economic growth depicted in this Figure? a) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of X. b) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of Y. c) This Figure represents growth due to an increase in resources and/or improvement in technology that are not specific to either product. d) This Figure represents growth due to an increase in specialization.
Explain how the relative PPP differs from the absolute PPP. Can the Relative PPP hold true while, at the same time, the absolute PPP fails to hold? Justify
Please help me with this macroeconomics question! 2
3/25/22, 10:54 PM Assignment Print View 3. The graphs below show the production possibilities frontiers for apples and peaches in Italy and Turkey. (i Italy's Production Possibilities 4.0 3.6 3.2 2.8 A 2.4 2.0 1.6 1.2 0.8 0.4 Peaches (millions of tons) https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=3.&postSubmissionView=13252718360410217&wid=13252718466068729&rol... 1/3 5.2 4.8 4.4 Y4.0 3.6 3.2 2.8 2.4 2.0 1.6 0.8 0.4 Apples (millions of tons)
Does the absolute PPP imply the relative PPP? What about the other way around?
Sam can brew 5 gallons of root beer in an hour or he can make 4 pizzas in an hour. Ben can brew 7 gallons of root beer in an hour or he can make 5 pizzas in an hour. Who has an absolute advantage in making pizza? [ Select ] ["Ben", "Sam"] Who has a comparative advantage in making pizza? [ Select ] ["Sam", "Ben"]
Give a definition of an advance in technology. Suppose that you are drawing a PPF for civilian goods and military goods, describe the effect on the PPF of an advance in technology in both civilian goods and military goods. How would the impact on the PPF be different if the technological improvement only helped in the production of military goods, but not civilian goods?
9. Draw a PPF curve for the macroeconomy of Germany (a large producer of capital goods). Assume that Germany has an unemployment rate of 7%. (Hint: draw the dashed line assuming a full employment level of 4.5% unemployment rate and consider only consumption and capital goods in the economy.)
BD and India are both producers of garments and rice. Garments require labor and capital, while rice requires labor and land. Assume that labor is mobile between sectors, but not between countries. Given the relative opportunity costs of garments and rice in each country, India exports rice to BD and Imports garments from BD. Suppose the amount of land available for rice cultivation in India grows. How will it affect India's PPF? What will be the impact of this development on Indian labor, Indian landowners and Indian garment factory owners? Use diagrams to explain if necessary.
Suppose the people in a certain economy decide to increase saving and add more to their stock of human or physical capital. Explain the prospects for growth of such an economies using three panel graphs.

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