Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 2, Problem 1.14P
Subpart (a)
To determine
The changes in the production possibilities frontier.
Subpart (b)
To determine
The changes in production possibilities frontier.
Subpart (c)
To determine
The changes in production possibilities frontier.
Subpart (d)
To determine
The changes in production possibilities frontier.
Subpart (e)
To determine
The changes in production possibilities frontier.
Subpart (f)
To determine
The changes in production possibilities frontier.
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Students have asked these similar questions
Graphically explain how each of the following events affects the location of a
country's production possibilities curve:
i. The quality of education increases.
ii. The number of unemployed workers increases.
iii. A new technique improves the efficiency of extracting copper from ore.
iv. A devastating earthquake destroys numerous production facilities.
Answer the following questions:
1) What is the production possibilities frontier?
2) Why do economists use models?
3) How does a society benefit from the production of capital goods?
4) What is the opportunity cost to the society of investing in the capital?
5) Why do economists consider the bowed production possibilities curve to be more realistic?
6) How can societies achieve economic growth?
Which of the following statements about the production possibilities curve is the most accurate?
OIt is a curve that shows the quantity of output that will be offered for sale at various prices.
It is a graph that shows the various combinations of output it is possible for an economy to produce given its
available resources and technology.
It is a graph that shows the combinations of output that are most profitable to produce.
It is a graph that shows the various combinations of resources that can be used to produce a given level of
output.
Chapter 2 Solutions
Principles of Economics (12th Edition)
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- Which of the following are made constant when applying the production possibilities curve theory? Select one: a. Trading rate between goods b. Total exports and imports c. Total number of factors of productions d. International pricingarrow_forwardHow will a reduction in the number of hours worked each day affect an economy's production possibilities curve? How will technological innovations that boost labor productivity affect an economy's production possibilities curve?arrow_forwardAny 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.arrow_forward
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