Which one is false? Explain why that is false. 1. The production possibilities curve is a simple device for summarizing the possible combinations of output that a society can produce if it employs its resources efficiently. 2. One person has a comparative advantage over another in the production of a good if she or he can produce more of that good than the other person.

Q: 1. Explain the opportunity cost principle and the interdependence principle in your own words. Give…

A: Opportunity cost defines the value of the next best alternative that must be forgone when a choice…

Q: Assume that Natalie and Grace have a garden behind their house and can each pick mushrooms and…

A: Hi, Since you have asked multiple sub-parts, I could provide answer only for first three sub-parts.…

Q: Amy and Deborah are roommates. They spend most of their time studying (of course), but they leave…

A: Absolute advantage is an economic concept that refers to the ability of a country, individual, or…

Q: O 6. Efficiency in the production possibilities model Suppose Italy produces only two goods:…

A: A production possibility frontier is the locus of all combinations of two goods/services an economy…

Q: 1. Assume you are stranded on an island with another person. The table below gives the maximum…

A: An economy has an absolute advantage if the economy can produce more goods in comparison to the…

Q: Diagrams 1 and 2 below depict the production possibility frontier (PPF) for Rosie’s Bakery. Answer…

A: Production possibility frontier curve: The production possibility frontier curve represents…

Q: Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of…

A: Production possibilities frontier shows the combinations of two goods that can be produced with the…

Q: An economy produces only two goods, pizzas and cakes. If the opportunity cost of pizzas in terms of…

A: Opportunity cost is the cost of the best alternative. It shows the units of the loss in order to get…

Q: 2.) "When deciding how many toppings to get on my pizza, I chose the number of toppings so that the…

A: "Correct answer is option d) i.e. making decisions on the margin."

Q: The production possibilities frontier is the Select one: O A. maximum output that can be produced at…

A: Production possibility frontier (PPF) refers to the all possible combination of two goods that a…

Q: 63. A farmer can produce 10,000 pears if he uses the whole of his one-acre farmland. If he uses the…

A:

Q: 3. Opportunity Cost Becky and Eileen are roommates. They spend most of their time studying (of…

A: Absolute advantage refers to the ability of the country to produce good with less labor hours than…

Q: Evidence accumulates that the use of fertilizers,  which increases agricultural production greatly,…

A: As it is said, more the use of chemical fertilizers, more there would be agricultural production and…

Q: Here are three things that you could do if you do not attend your next-door neighbor's barbecue:…

A: Elasticity measures the responsiveness of quantity demanded to changes in the price level.

Q: 1. PPF and CPF - Jane and Tarzan can produce food and luxury goods. • Tarzan's production…

A: Opportunity costs address the potential advantages a private, financial backer, or business passes…

Q: Suppose you and a friend are stranded on an island and must gather firewood and catch fish to…

A: An opportunity cost is a potential benefit that someone loses out on when selecting a particular…

Q: The production possibilities frontier is the Select one: O A. maximum output that can be produced at…

A: The Production Possibilities Frontier (PPF), also known as the production possibility curve or the…

Q: • Refer to fig. 2.1 in the text. 1. Identify the optimal level of production of this good. 2. In…

A: 1. Optimal level of production is determined at the point where, MB=MC Thus, the condition for the…

Q: Which of the following statements is true? a. The law of increasing opportunity costs assumes that…

A: Production Possibility Curve shows the maximum possible combination of two goods that can be…

Q: Use the figure below to answer the following questions. Good Y 10- 8 6 4 2 0 2 4 6 B 8 10 Good X…

A: The production possibility frontier is the graphical representation showing all the possible…

Q: Suppose that an economy produces only 2 goods, beer and pizza. Show a typical production…

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Q: 1a. What is a Production Possibilities Frontier (PPF)? Consider an economy with only two goods: guns…

A: The production possibility frontier is defined as the various combination goods or commodities at…

Q: In one to two sentences, explain what happens to a production possibilities curve if a natural…

A: Natural disasters like hurricanes, earthquakes, and droughts can cause disruptions to the supply of…

Q: What are the three common pitfalls that people make when they do "cost-benefit" analysis. Explain…

A: Cost-benefit analysis and Opportunity cost: Cost-benefit analysis portrays the systematic comparison…

Q: 4. Shifts in production possibilities Suppose the fictional country of Yosemite produces two types…

A: Opportunity cost is the value of the next-best alternative forgone when a choice is made. In other…

Opportunity Cost Analysis

Opportunity cost refers to the loss of potential benefits when choosing one alternative over another. It is the tradeoff a person makes, or the potential gains they miss out on, because of their choice. To analyze opportunity cost, we must consider the benefits and tradeoffs of each available option.