Survey Of Economics
10th Edition
ISBN: 9781337111522
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 2, Problem 14SQ
To determine
The economy that is more likely to produce the greatest growth in PPC.
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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.
The following graph shows a production possibilities curve for a hypothetical country.
Suppose that due to an increase in human capital, a country experiences economic growth.
Adjust the following graph to show the effect of advances in human capital on the economy's production possibilities curve.
Consumption goods
PPC
Capital goods
6
PPC
The following graph shows the production possibilities curve for an economy that produces Consumption goods and Capital goods. Use the graph to answer the following questions
A) How do you describe what is happening as the economy moves from point P to point L? (discuss it in terms of economic efficiency)
B) Which combination - K or M - can lead to faster economic growth in the future? How do you know? Explain your answer.
C) If the economy is currently operation at point L, what is the opportunity cost of producing 10 more Capital goods (Moving from combination L to combination M)?
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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Similar questions
- Graph 1: Draw a production possibilities model with 4 points labeled A, B, C, D, one inside, two on, and one outside the production possibilities curve. Explain the 4 points in terms of scarcity, choice, and efficiency. Graph 2: Draw a production possibilities model which illustrates economic growth. Graph 3: Draw a production possibilities model and using your own numbers, explain the concept of the law of increasing opportunity cost. Graph 4: Draw a production possibilities model for North Korea and label the Y axis Guns, and the X axis Butter. Put two points, A and B, on the curve. Using the two points, explain the concept of government (or market) failure.arrow_forwardUse the figure below to answer the following questions. What is the opportunity cost of increasing investment from 6 units to 8 units? Production Possibilities 10 10 CONSUMER GOODS (units per time) INVESTMENT GOODS (units per time)arrow_forwardScarcity is a problem because... Group of answer choices There are not enough resources to produce all the goods and services people want to purchase. There are only small quantities of resources available on earth Not everyone has the same amount of resources, such as land and labor Unemployment exists, and therefore some people do not have enough resources to meet their basic needs.arrow_forward
- The fundamental economic problem is one of scarcity. The basic questions of economics become: What to produce? How to produce? For whom to produce?arrow_forwardWhat does a point inside the production possibilities frontier (PPF) represent? A. An efficient allocation of resources B. An underutilization of resources C. A technologically advanced production point D. An unattainable production level given current resourcesarrow_forward间。 H f in a certain economy, jam and bread are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more jam and more bread, relative to the quantities of those goods that are being produced now? Unemployed labor is put to work producing jam and bread, The economy puts its idle capital to work producing jam and bread. The economy experiences economic growth. All of the above are correct.arrow_forward
- The graph shows a production possibilities curve for 2023 and two potential production possibilities curves for 2024, denoted 2024 and 2024. a. The labeled point that corresponds to maximum feasible 2023 production and is more likely to be associated with the curve denoted 2024A, is ***** Capital Goods 10- 0 Production Possibilities Curves. X O N Y 2023 2024A 2024B Consumption Goods 10arrow_forward#18 Which point represents a production possibility that is most efficient? * A, because iPod Touches are cheaper to produce than iPhones. F, because iPhones are more expensive for consumers to buy. D, because there are an equal amount of iPod Touches and iPhones available to consumers. Any point on the curve, because all available resources are used fully. Which point represents a production possibility that is possible but inefficient? A E * 1 pcarrow_forwardTools 4. Shifts in production possibilities Suppose the fictional country of Yosemite produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for rice, an agricultural good, and axles, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a time-saving innovation in the manufacturing of axles. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. AXLES (Thousands) 420 350 280 210 140 70 0 PPF 80 120 160 RICE (Millions of bushels) 200 240 PPFarrow_forward
- A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they dont like the taste. From an economic perspective, the company should keep the hamburger on the menu because they have spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.arrow_forwardWhen economic growth occurs, the production possibilities frontier shifts outward but no longer limits the amount that can be produced. economy moves along its production possibilities frontier. production possibilities frontier shifts outward. production possibilities frontier becomes steeper.arrow_forwardGraphically 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.arrow_forward
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