The economy was at point A producing 100X and 200Y. It moved to point B where it produces 200X and 300Y. It follows that point A may have been a point below the economy's production possibilities frontier (PPF), while point B may lie on the PPF. the economy's PPF could have shifted outward and point B was a point on the economy's old PPF the economy has moved from one point on its PPF to another point on the same PPF.
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- The economy was at point A producing 100X and 200Y. It then moves to point B where it produces 200X and 300Y. It follows that a. the economy has moved from one point on its PPF to another point on the same PPF. Ob the economy moved from an unattainable point to an attainable point. O the economy's PPF could have shifted inward and point A was a point on the economy's old PPF. Od. point A may have been a point below the economy's PPF, while point B may lie on the PPF.Why does this PPF have a bowed-out shape? How can the economy increase its production of both tea and snacks? Graph the PPF with and show an increase in its production.140 120 100 20 PPP 10 20 30 40 50 60 70 80 90 100 Quantity of rubber hoses (Figure: Figure: Rubberland's Production Possibilities) Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the lighter PPF curve in the graph. Point A on the lighter PPF curve represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the PPF shifts to the right, the darker PPF curve. Assume that Rubberland does not make more rubber hoses than they originally made at point A but still maximize their productive capabilities. How many more rubber hand balls do they now produce per day than before? O 59 O 30 O 20 Q 39 Quantity of rubber hnd halls
- SMARTPHONES (Millions) 40 20 0 PPF 0 40 60 CORN (Millions of bushels) Which of the following is true regarding this economic model? O In order to construct such a model, an economist would need real life data regarding countries that produce only two goods. O The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. O This PPF is not an economic model. O The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts. 20 80 100Consider the following production possibilities curve (PPC) for an economy that produces two goods- cotton and bananas, both measured in tonnes produced per year. (0, 1500) A (100, 1440) B Tonnes of Cotton 1500 1000 500 0 100 100 tonnes of cotton 360 tonnes of cotton 300 tonnes of cotton. (200, 1280) 920 tonnes of cotton. 200 Tonnes of Bananas (300, 920) 300 Suppose the economy is currently producing at Point C. What is the opportunity cost of increasing production of bananas to 300 tonnes at Point D? E (360, 500) F (400,0) 400Keep the Highest / 1 4. Shifts in production possibilities Suppose Spain produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for alfalfa, an agricultural good, and locomotives, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of avian flu that sickens millions of workers. 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. 420 350 PPF 280 210 140 70 PPF 40 80 120 160 200 240 ALFALFA (Millions of bushels) LOCOMOTIVES (Tho us ands).
- Explain how the following situation would affect a nation's production possibilities curve. The quality of education in the nation's colleges and universities improve greatly. What happens to PPF Choose.... Explanation Choose... Choose... PPF shifts inwards Produce inside PPF Unused resources Produce outside PPF Reduction in resources Increase in resources PPF shifts outwards Increased production given resourcesConsider 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?The graph below is Mendork's production possibility curve for the only two goods that it produces: quirks and quarks. Quantity of Quarks 800 700 600 500 400 300 200 100 2 4 6 8 10 12 14 16 18 20 Quantity of Quirks Note: If the image does not appear, right-click on the placeholder and choose Show picture or View image. If Mendork's current production is at point A, what is the (approximate) cost of producing one more quirk? a) 50 quarks B b) 100 quarks c) 200 quarks d) One more quark e) 25 quarks
- Graph A Graph B Graph C Graph D Which of the above 4 graphs best represents the change in the PPF if a tornado destroys part of the country?What is meant by produce outside ppf and produce inside ppf. Country A and Country B are two countries that each produce t-shirts (T) and sneakers (S). From its available resources and technology Country A can produce 100 t-shirts and 0 sneakers or 0 t- shirts and 200 sneakers or any combination of t-shirts and sneakers that sits on Country A's linear PPF. From its available resources and technology Country B can produce 50 t-shirts and 0 sneaker or 0 t-shirt and 50 sneakers or any combination of t-shirts and sneakers that sits on Country B's linear PPF. b. Write an equation in slope-intercept form for the PPF for Country A.