Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 2, Problem 1QP
(a)
To determine
Changes in U.S
(a)
Expert Solution
Explanation of Solution
A war taken place in the US soil leads to reduction in capital stock, potential resources and also kills people. This in turn shifts the US’s PPF inward.
Economics Concept Introduction
Production possibilities frontier (PPF) curve: PPF curve refers to the combinations of goods and services that can be produced using available resources.
(b)
To determine
Changes in U.S PPF when new oil is discovered.
(b)
Expert Solution
Explanation of Solution
The discovery of new oil field increases the US’s resources. Thus, it shifts the PPF of U.S outward.
(c)
To determine
Changes in U.S PPF when
(c)
Expert Solution
Explanation of Solution
Decreasing unemployment rate represented by the movement of a point that is below the PPF to another point that is near or on the frontier.
(d)
To determine
Changes in U.S PPF.
(d)
Expert Solution
Explanation of Solution
The new law decreases the productive efficiency of the labor that leads to the movement of a point which is on the frontier to the point that is inside the frontier.
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Chapter 2 Solutions
Economics (MindTap Course List)
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1QPCh. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QP
Ch. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 13QPCh. 2 - Prob. 1WNGCh. 2 - Prob. 2WNGCh. 2 - Prob. 3WNGCh. 2 - Prob. 4WNGCh. 2 - Prob. 5WNGCh. 2 - Prob. 6WNGCh. 2 - Prob. 7WNGCh. 2 - Prob. 8WNGCh. 2 - Prob. 9WNGCh. 2 - Prob. 10WNGCh. 2 - Prob. 11WNGCh. 2 - Prob. 12WNG
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