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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Students have asked these similar questions
In a production possibilities frontier graph, the cost of producing more units of a
good is measured by the
A) dollar value of the resources used to produce the good.
B) amount of the other good or service that must be forgone.
dollar value of the additional output.
area in the arc between the PPF and a straight line drawn between the
starting point and the ending point.
E) None of these answers is correct.
Use the diagram below uploaded to answer the questions that follow.
(a) What change could cause the PPF to shift from the original curve (HJ) to the new curve (MN)?
(b) Under what conditions might an economy be operating at point Z?
(c) Why might a government implement a policy to move the economy from Point V to Point W?
A global pandemic results in 6 million confirmed cases and the death of over 400,000 individuals.
What happens to the PPF curve? Also, from the list provided, please choose an explanation as to why you chose your previous answer.
What happens to the PPF? Explain. Choose:
PPF shifts outwards
Produce inside PPF
Produce outside PPF
Increased production given resources
Increase in resources
PPF shifts inwards
Unused Resources
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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- The nation passes a law requiring all employers to give the employees 16 weeks of paid vacation each year. Prior to this law employer were not legally required to give employees any paid vacation time. What happens to the PPF curve? Also, from the list provided, please choose an explanation as to why you chose your previous answer. What happens to the PPF? Explain. Choose: PPF shifts outwards Produce inside PPF Produce outside PPF Increased production given resources Increase in resources PPF shifts inwards Unused Resourcesarrow_forwarda) Why is the PPF curve bowed outward. Is it due to increasing opportunity cost or decreasing opportunity cost or constant opportunity cost Type and answer using only one of the underlined words above b) What happens to the PPF curve during a recession? Will it shift inward or outward or remains constant Type and answer using only one of the underlined words above c) Suppose a technology is banned due to its adverse environmental impacts. Would the production possibilty curve shift inward or outward or remain constant due to this Type and answer using only one of the underlined words above d) How will a policy encouraging more immigration would shift the production possibility forntier. It will shift inward or outward or remain constant Type and answer using only one of the underlined words abovearrow_forward(a) If PPF₂ in the graph that follows is the relevant PPF, then which points are unattainable? Explain your answer. (b) If PPF₁ in the preceding figure is the relevant PPF, then which point(s) represent productive efficiency? Explain your answer.arrow_forward
- If a PPF is "bowed outward" from the origin, then which of the following can be true? (check all that apply) The opportunity cost of producing another unit of the good on the y-axis decreases in terms of foregoing units of the good on the x-axis that are given up. The opportunity cost of producing another unit of the good on the x-axis increases in terms of foregoing units of the good on the y-axis that are given up. Inputs may be specialized for different uses Each unit of labor isn't equally productive in producing every unit of each goodarrow_forwardUse the diagram attached to answer the questions that follow. (a) What change could cause the PPF to shift from the original curve (HJ) to the new curve (MN)? (b) Under what conditions might an economy be operating at point Z? (c) Why might a government implement a policy to move the economy from Point V to Point W?arrow_forwardHow would the production possibilities curve be impacted? Group of answer choices The PPC would shift outward The PPC would shift inward The point on the PPC would move closer to the curve The point on the PPC would move closer to the origin HERE ARE THE QUESTIONS: Explain how each of the following situations would affect a nation’s production possibilities curve. A law is passed which makes community college tuition free for all U.S. citizens. An unexpectedly mild spring results in a bumper crop of citrus fruit in both Florida and California. A change in immigration laws significantly decreases the number of immigrant workers entering the country. The amount of time that unemployed workers can collect unemployment insurance is decreased from 96 weeks to 26 weeks following the end of a recession, resulting in workers remaining unemployed for a shorter period of time. An innovation in desalinization technology allows for the more efficient conversion of salt water…arrow_forward
- or each of the following separate parts, you are required to draw one or two graphs. Make sure that you label both axes correctly. (a) Consider the demand for gasoline. Suppose more substitutes for gasoline are available. Draw a graph to show how the price of elasticity of demand for gasoline changes. (b) Country A produces two goods: chicken wings and pizzas. If unemployment rate increases, draw how the PPF of country A will change. Assume that opportunity costs are increasing. (c) Consider the market for new houses. Suppose the prices of the materials for building houses increase. Draw a graph to show how the equilibrium of market for new houses changes.arrow_forwardConsider farms in Ontario that produce corn or wheat on their land. Small farms have land that is varied in its suitability for growing corn and wheat. Large industrial farms have economies of scale--the more corn (wheat) they produce, the lower their costs. Draw a representative PPF for a small farm and an industrial farm. Explain the shape of your PPFS.arrow_forwardAlice and Bob are both capable of producing goods X and Y. In one hour, Alice can produce one unit of each good. In the same amount of time, Bob can produce two units of each good. If Alice and Bob have access to the same amount of time, calculate the difference between the slope of Alice's PPF and the slope of Bob's PPF. (round to two decimal places if necessary)arrow_forward
- The production possibilities frontier (PPF) is a simplified economic model that illustrates the different combinations of two products that an economy can produce given the resources it has available. Assume the country of Turkey can produce only apples or oranges and answer each of the following questions A if a flood destroyed 20% of the farmland used to grow apples and oranges, which direction will Turkey's PPF shift /your answer should be "outwards" or "inwards") and why? B. Turkey decides to begin increasing, the production of oranges. Explain the implications of this using the term "opportunity cost" C An advancement in organic pesticide has allowed for less fruit to be damaged by pests. Explain how this change would alter the PPF.arrow_forwardUsing a production possibilities frontier (PPF) diagram, determine how does the PPF change in response to the events describe below. a) A relaxation of policies allowing more foreign direct investment into the country. b) Increasing the minimum wage level. c) A decrease in expenditure on research and development. d) An increase in the retirement age. e) Government policies supporting the provision of services, without affecting manufacturing.arrow_forwardHelp! The question is to Explain how the following situation would affect a nation's production possibilities curve. A category 5 hurricane destroys over 40% of the nation's productivity. The two questions are What happens to PPF and an explanation. The options for both are in the drop down.arrow_forward
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