Microeconomics
13th Edition
ISBN: 9781337617406
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.
(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.
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.
(c)
To determine
Changes in U.S PPF.
(c)
Expert Solution
Explanation of Solution
Decreasing
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.
(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.
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.
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Chapter 2 Solutions
Microeconomics
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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