The question is simple. Consider an economy with just one technique for production of each good: Good Food Cloth Labor per unit output 1 1 Land per unit output 2 1 Capital per unit output 0.8 0.9 Q1. There are 100 units of capital available. Write and draw the production possibility possiblity curve in this case. Label all the important points clearly.

The question is simple. Consider an economy with just one technique for production of each good: Good Food Cloth Labor per unit output 1 1 Land per unit output 2 1 Capital per unit output 0.8 0.9 Q1. There are 100 units of capital available. Write and draw the production possibility possiblity curve in this case. Label all the important points clearly.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 9SQP

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Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.

Question

The question is simple. Consider an economy with just one technique for production of each good:

Good	Food	Cloth
Labor per unit output	1	1
Land per unit output	2	1
Capital per unit output	0.8	0.9

Q1. There are 100 units of capital available. Write and draw the production possibility possiblity curve in this case. Label all the important points clearly.

Definition Definition Curve that represents the various combinations of production possibilities of two commodities when resources or factors of production are given.

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An economy produces two goods ,X and Y .lt uses two means of production, labour and capital. A unit of labour can produce either 1unit of X or 4units of Y (or linear combination of the two).A unit of capital can produce either 4units of X or 1unit of Y (or linear combination of the two)there are 100units of each means of production. (i) Draw the production possibility frontier of the economy when the two goods can only be produced by a mixture of both factors. (ii)What will be the opportunity cost of X if the economy produces 50units of X ? (iii) Given that the production technology is linear ,will the opportunity cost of X remain unchanged when we produce 90units of X ? (iv)Briefly explain the difference between the PPC with a constant opportunity cost and the PPC with an increasing opportunity cost as more output of one good is produced. Use a well labeled diagram to explain your answer?
If we wanted to make the statement that a particular point on a production possibility frontier was both allocatively and technically efficient, which of the following additional pieces of information would we need? Selected answer will be automatically saved. For keyboard navigation, priess up/down arrow keys to select an answer, a b C d The relative prices of the goods. Consumer preferences between the goods. The costs of production of the goods. We don't need any additional information-if a point is technically efficient, it is also allocatively efficient.
ple Choice ý the letter of the choice that best completes the statement or answers the question. 1. Which of the following is an example of lower production costs brought about by the use of technology? the delivery costs of gasoline to the consumer by diesel trucks the use of e-mail to replace slower surface mail а. b. the making of breads and pastries in local shops rather than large bakeries the importing of fresh vegetables from South America rather than using canned vegetables- с. d. 2. What is the effect of import restrictions on prices? They cause prices to drop. b. a. They cause prices to rise. They often cause prices to rise steeply and then drop. d. They usually do not have any lasting effect on price. с. 3. What do sellers do if they expect the price of goods they have for sale to increase dramatically in the future? sell the goods now and try to invest the money instead of resupplying sell the goods now but try to get the higher price for them store the goods until the…
The production possibility frontier is a graph that shows Select one: a. how much goods a society can consume at various average price levels. b. all combinations of goods that a society can produce if it uses all its resources efficiently. c. all combinations of goods that a society can consume if it uses all its resources efficiently. d. all combinations of factors that a society can use if there are no idle factors. e. the rate at which a societyʹs output will grow if it uses all resources efficiently.
How could a society manage to end up consuming a bundle of goods that is beyond its production possibility frontier？ And, in doing so, how does it shift what it produces? Please include a graph that helps to illustrate your answer.
Explain why societies cannot make a choice above their production possibilities frontier with own resources and should not make a choice below it.
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 A 2 4 6 8 10 12 14 16 18 20 Quantity of Quirks Select one: Refer to the graph above to answer this question. If new technology increased the output of quirks by 50%, how many quirks could be produced if 700 quarks were produced? B A. 9 quirks. B. 18 quirks. C. 10 quirks. D. 20 quirks. E. No quirks.
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