When a nation's economy grows: its efficient level of production is on a production possibility frontier that is further outward than the original. its production possibility frontier has necessarily shifted inward. it has moved to a position at the interior of the production possibility frontier. it has moved to a more consumer-oriented position on its production possibility frontier. Question 33 All points inside the production possibility frontier represent: efficient production points that economies strive to reach. inefficient production points that are attainable without added opportunity costs. infeasible production points that can, however, be attained through economic growth. production points that the economy will eventually reach through economic growth.

When a nation's economy grows: its efficient level of production is on a production possibility frontier that is further outward than the original. its production possibility frontier has necessarily shifted inward. it has moved to a position at the interior of the production possibility frontier. it has moved to a more consumer-oriented position on its production possibility frontier. Question 33 All points inside the production possibility frontier represent: efficient production points that economies strive to reach. inefficient production points that are attainable without added opportunity costs. infeasible production points that can, however, be attained through economic growth. production points that the economy will eventually reach through economic growth.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following statements is true? A) The law of increasing opportunity costs assumes that all people have the same ability to produce goods. B) In a world of efficiently used scarce resources, more of one good necessarily means less of some other goods. C) Efficiency implies that it is possible to get more of one good without getting less of another. D) Even if a country has unemployed resources, it can still be operating on its production possibilities frontier. 11) Which of the following would not lead to a shift in the demand curve for apples? a) an increase in the price of oranges b) a decrease in incomes for consumers c) a decrease in the price of apples d) an increased preference for apples
Which of the following policies would increase production by taking it to a point closer to the production possibility frontier, but would not shift the frontier?a) A policy that encouraged firms to buy more industrial plant.b) A policy that encouraged firms to develop and introduce improved technology.c) A policy that encouraged firms to buy more machinery.d) A policy that encouraged firms to adopt better technologies that are already available.
(10) Suppose the production possibility frontier for meat (M) and potatoes (P) is given by: 2P + 4M = 200 a. Suppose that people prefer to eat two potatoes with every pound of meat, how much of each product will be produced? b. Assuming that this economy is operating efficiently, what price ratio must prevail?
Question 2 In answering the question, you should emphasize the line of reasoning that generated your results; it is not enough to list the results of your analysis. Include correctly labeled diagrams, if useful or required, in explaining your answer. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. Assume that the country of Fischerland produces only consumer goods and capital goods. CONSUMER GOODS CAPITAL GOODS a. The graph above shows the production possibilities curve for Fischerland. The production of which of the following exhibits increasing opportunity costs: consumer goods only, capital goods only, both goods, or neither good? b. Redraw the graph given above. Show a point that represents fully employed and efficiently used resources on the redrawn graph and label it A. c. Assume there is a recession in Fischerland. On your graph in part (b), label as C a point representing the recession. d. Identify a fiscal policy…
If a PPF is "bowed outward" from the origin, then which of the following can be true? (check all that apply) The opportunity cost of producing another unit of the good on the y-axis decreases in terms of foregoing units of the good on the x-axis that are given up. The opportunity cost of producing another unit of the good on the x-axis increases in terms of foregoing units of the good on the y-axis that are given up. Inputs may be specialized for different uses Each unit of labor isn't equally productive in producing every unit of each good
The ________ production points on a production possibilities frontier are the points on and inside the production possibilities frontier. attainable unattainable productively efficient allocatively efficient
E1 10) When we say that the free market maximizes the gains from trade, we mean each of the following EXCEPT: (a) there are unexploited gains from trade. (b) the goods are bought by the buyers with the highest willingness to pay. (c) the goods are sold by the sellers with the lowest costs. (d) there are no wasteful trades.
Any point on a country's production possibilities curve represents a combination of two goods that an economy will never be able to produce. can produce using all available resources and technology. can produce using some portion, but not all, of its resources and technology. may be able to produce in the future with more resources and/or technology.
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.
Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to produce mangoes and coconuts as shown in the table below. Coconuts (in tons) Mangoes (in tons) Zeetopia 50 60 Freshland 50 30 (a) Which island has an absolute advantage in producing coconuts? Explain. (b) Which island has a comparative advantage in producing coconuts? Explain. (c) Assume Zeetopia and Freshland decide to specialize according to their comparative advantages and 1 ton of coconuts is exchanged for 1 ton of mangoes. Are specialization and trade under these terms beneficial to both Zeetopia and Freshland? Explain. (d) Assume the two islands experience constant…
Economics
Which of the following statements is not correct? Multiple Choice An increase in a nation's labor supply will cause its potential output to increase. Economic growth can be illustrated by an expansion of a nation's production possibilities curve. An increase in the quantity of a nation's resources will cause economic growth, but an increase in the quality of resources will not. New technologies or new ways of producing output can cause a nation's production possibilities curve to shift outward.