Survey Of Economics
10th Edition
ISBN: 9781337111522
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 2, Problem 12SQ
To determine
The implication of the combination outside the PPC.
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Students have asked these similar questions
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 pricing
a) Draw a diagram to illustrate the economy's production possibilities curve.
b) Use values from the table or the diagram to explain the concept of
opportunity cost.
c) On your diagram, add a point "F" that is inside the curve. Describe how the
economy is using its resources at point F.
d] On your diagram, add a point "G" that is beyond the curve. Explain why this
point is currently not attainable.
e) Explain what would have to happen for the economy to reach point G.
2. Using a (new) PPC diagram, explain what would happen if an economy
experienced a devastating natural disaster. Be sure to explain your reasoning
The only way that a society can produce outside the production possibilities curve is
:by producing efficiently.
through economic growth.
by obeying the Law of Increasing Relative Cost.
to use the concept of opportunity cost.
Chapter 2 Solutions
Survey Of Economics
Ch. 2.6 - Prob. 1YTECh. 2.7 - Prob. 1GECh. 2 - Prob. 1SQPCh. 2 - Prob. 2SQPCh. 2 - Prob. 3SQPCh. 2 - Prob. 4SQPCh. 2 - Prob. 5SQPCh. 2 - Prob. 6SQPCh. 2 - Prob. 7SQPCh. 2 - Prob. 8SQP
Ch. 2 - Prob. 9SQPCh. 2 - Prob. 10SQPCh. 2 - Prob. 11SQPCh. 2 - Prob. 12SQPCh. 2 - Prob. 1SQCh. 2 - Prob. 2SQCh. 2 - Prob. 3SQCh. 2 - Prob. 4SQCh. 2 - Prob. 5SQCh. 2 - Prob. 6SQCh. 2 - Prob. 7SQCh. 2 - Prob. 8SQCh. 2 - Prob. 9SQCh. 2 - Prob. 10SQCh. 2 - Prob. 11SQCh. 2 - Prob. 12SQCh. 2 - Prob. 13SQCh. 2 - Prob. 14SQCh. 2 - Prob. 15SQCh. 2 - Prob. 16SQCh. 2 - Prob. 17SQCh. 2 - Prob. 18SQCh. 2 - Prob. 19SQCh. 2 - Prob. 20SQ
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- Consider the production possibilities frontier below. Assume that an economy is producing the mix of outputs represented by point A. What would have to happen in order for this economy to produce at point B? Output 2 Technological progress A recession Output 1 Giving up some output 1 to produce more output 2 A decrease in taxesarrow_forwardThe only way that a society can produce outside the production possibilities curve is Question 9 options:by producing efficiently.through economic growth.by obeying the Law of Increasing Relative Cost.to use the concept of opportunity cost.arrow_forwardHow would each of the following situations affect a nation's production possibilities curve? A law is passed that makes community college tuition free for all U.S. citizens. The PPC shifts and to the An unexpectedly mild spring results in a bumper crop of citrus fruit in both Florida and California, The PPC shifts and to the A change in immigration laws significantly increases the number of immigrant workers entering the country. The PPC shifts and to the The amount of time that unemployed workers can collect unemployment insurance is increased from 26 weeks to 96 weeks during a recession, resulting in workers remaining unemployed for a longer period of time. This the PPC. An innovation in desalinization technology allows for the more efficient conversion of salt water to fresh water. The PPC shifts A radiation leak at a nuclear power plant results in the long-term evacuation of a 10,000 square-mille area, which significantly reduces the nation's productive capacity The PPC shifts and…arrow_forward
- Can the Production Possibilities Curve shift left? If not, explain why. If it can, explain what might cause this to happen.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_forwardComment on the following statement. Analyze from an economic standpoint. Do you agree or disagree?a) Rising productivity means that it takes fewer workers to produce a given level of output. Productivity increases are therefore a source of unemployment“.b) It is impossible that you are worse off with a wage increase than you were before it“.arrow_forward
- Assuming Line BB is our original curve, suppose there is a major technological breakthrough in the consumer goods industry, and the new technology is widely adopted. Which curve in the diagram would represent the new production possibilities curve?arrow_forward1- If an economy is producing on its production-possibilities curve, then producing more of one good implies shifting the curve toward the origin. * True False 2- Beirut's decision to control apartment rents is an example of Government intervention. * True False 3- The unemployment rate in Lebanon increased to 6.6 percent in the last year: this is a macroeconomic statement. True Falsearrow_forwardWhich of the following statements are true regarding this Production Possibilities Curve? Select all that apply: Quantity of bicycles produced PPF Quantity of cars produced Point A represents possible numbers of cars and bicycles that can be sold The movement along the curve from Point A to Point B shows the opportunity cost of producing more bicycles. If a society experiences a substantial increase in unemployment, the PPF shifts inward If an improved process of manufacturing cars is introduced, the entire PPF will shift outward. All of the statements are true All of the statements are falsearrow_forward
- Which situation would most likely cause a nation's production possibilities curve to shift inward? The construction of more capital goods An increase in discrimination based on race An increase in the number of skilled immigrant workers The destruction from bombing and warfare in a losing military conflictarrow_forwardA certain production possibilities frontier shows production possibilities for two goods: pants and shirts. Which of the following concepts can not be illustrated in this model? Select one: a. the tradeoff between production of pants and production of shirts b. the effect of economic growth on production possibilities involving pants and shirts c. the flow of dollars between (i) sellers of pants and shirts and (ii) buyers of pants and shirts d. the opportunity cost of shirts in terms of pantsarrow_forwardMatch each good with either "final good" or "intermediate good". Cowhide, purchased by a tanner, to be made into a belt for retail sale [Choose ] intermediate good final good A new guitar sold by a music store to a child learning to play [Choose ] intermediate good final good A ton of steel that will be used to make several new cars [Choose ] intermediate good final good A new car sold to a nice old lady who only drives it to church on Sundays [Choose ] intermediate good final good Flour used by a pizza restaurant to make a pizza [Choose ] intermediate good final good Cement purchased by a homeowner to repair a sidewalk [Choose ] intermediate good final good Cement purchased by a contractor to build a sidewalk for a new house [Choose ] intermediate good final good A pizza oven used by a restaurant to make pizza [Choose ] intermediate good final goodarrow_forward
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