Microeconomics (6th Edition)
6th Edition
ISBN: 9780134106243
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 2, Problem 2.1.9PA
Subpart (a):
To determine
Production possibilities frontier.
Subpart (b):
To determine
Production possibilities frontier.
Subpart (c):
To determine
Production possibilities frontier.
Subpart (d):
To determine
Production possibilities frontier.
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Students have asked these similar questions
Draw a production possibilities frontier for a country that produces two goods: capital goods and consumption goods. Show a point of production that will allow a country to achieve the maximum amount of future growth while still producing a small amount of consumption goods.
The figure shows the production
possibility frontier for a country.
Suppose the country is producing at
point D. What would be the
opportunity cost to move to point C?
15 thousand bottles of wine
This movement is not possible
without economic growth.
6 thousand bottles of wine
12 tons of rice
Nothing, it is a free lunch
Use the following production possibilities frontier for a country to answer the following questions.
Which point(s) are unattainable? Briefly explain why.
Point A because it is inside the production possibilities frontier.
Point E because it is outside the production possibilities frontier.
E
All the points because the production of each has an opportunity cost.
C
None of the points because they all are feasible.
Points B, C, and D because they are on the production possibilities frontier.
A
D
PPE
Consumption goods
-...
Capital goods
Chapter 2 Solutions
Microeconomics (6th Edition)
Ch. 2 - Prob. 1TCCh. 2 - Prob. 2TCCh. 2 - Prob. 2.1.1RQCh. 2 - Prob. 2.1.2RQCh. 2 - Prob. 2.1.3RQCh. 2 - Prob. 2.1.4PACh. 2 - Prob. 2.1.5PACh. 2 - Prob. 2.1.6PACh. 2 - Prob. 2.1.7PACh. 2 - Prob. 2.1.8PA
Ch. 2 - Prob. 2.1.9PACh. 2 - Prob. 2.1.10PACh. 2 - Prob. 2.1.11PACh. 2 - Prob. 2.1.12PACh. 2 - Prob. 2.1.13PACh. 2 - Prob. 2.1.14PACh. 2 - Prob. 2.2.1RQCh. 2 - Prob. 2.2.2RQCh. 2 - Prob. 2.2.3PACh. 2 - Prob. 2.2.4PACh. 2 - Prob. 2.2.5PACh. 2 - Prob. 2.2.6PACh. 2 - Prob. 2.2.7PACh. 2 - Prob. 2.2.8PACh. 2 - Prob. 2.2.9PACh. 2 - Prob. 2.2.10PACh. 2 - Prob. 2.2.11PACh. 2 - Prob. 2.2.12PACh. 2 - Prob. 2.2.13PACh. 2 - Prob. 2.2.14PACh. 2 - Prob. 2.2.15PACh. 2 - Prob. 2.3.1RQCh. 2 - Prob. 2.3.2RQCh. 2 - Prob. 2.3.3RQCh. 2 - Prob. 2.3.4RQCh. 2 - Prob. 2.3.5RQCh. 2 - Prob. 2.3.6RQCh. 2 - Prob. 2.3.7PACh. 2 - Prob. 2.3.8PACh. 2 - Prob. 2.3.9PACh. 2 - Prob. 2.3.10PACh. 2 - Prob. 2.3.11PACh. 2 - Prob. 2.3.12PACh. 2 - Prob. 2.3.13PACh. 2 - Prob. 2.3.14PACh. 2 - Prob. 2.3.15PACh. 2 - Prob. 2.3.16PA
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Similar questions
- Use the following production possibilities frontier for a country to answer the following questions. Which point(s) are unattainable? Briefly explain why. O Point A because it is inside the production possibilities frontier. All the points because the production of each has an opportunity cost. B E Point E because it is outside the production possibilities frontier. None of the points because they all are feasible. A Points B, C, and D because they are on the production possibilities frontier. Which point(s) are efficient? Briefly explain why. A Points A, B, C, and D because they are attainable. O Points B, C, and D because this is where maximum output is produced with available resources. PPF Point A because it is inside the production possibilities frontier. Point E because it is where the most capital and consumption goods combined are produced. Consumption goods O Point B because it is where the most resources are used to produce capital goods. Which point(s) are inefficient?…arrow_forwardWhat are the components of economic growth? How does PPF is used to depict the economic growth of a country?arrow_forwardQUESTION 11 Assume that a country with a market economy produces capital goods and consumer goods, use the data that follows to answer the question that follows: TT Capital Goods Consumer Goods 25 20 20 15 40 10 60 80 100 Assuming that the country is using its resources efficiently, what is the opportunity cost of producing 5 more capital goods when the country is already producing 10 capital goods? Explain.arrow_forward
- Ruritania produces Widgets and Gizmos. If all of its factors of production are committed to making widgets exclusively, it can make 8 million units each year. If all of its factors are committed to making Gizmos exclusively, it can make 8 million units per year. Ruritania's Ministry of Growth has considered various plans to stimulate economic growth in the kingdom. Adjust the production possibilities frontier (PPF) on the graph to show the impact of a successful plan to improve the literacy rate. (Look at image)arrow_forwardUse the concept of an economy-wide production possibilities to explain full employment output and economic growth. Why is full employment and economic growth both important for all economies?arrow_forwardThe 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 PPCarrow_forward
- Using a simple model of the Production Possibilities Curve (PPC), label points that show inefficient, and efficient, unattainable production. What are the major assumptions of the underlying the model?b. Use a second model to illustrate the difference between economic expansion and economic growth.arrow_forwardQuestion 9 The diagram below shows two production possibility frontiers for a country. Consumer Goods A B C D A A to C B to C C to D D to E B C E D Which of the following is most likely to represent an increase in short run economic growth. A movement from Capital Goodsarrow_forward#30arrow_forward
- On a diagram of a production possibilities frontier, economic decline (negative growth) is represented by the production possibilities frontier shifting inward. True Falsearrow_forward1. Use the information in the following table to discuss the trade pattern between Brazil and Korea for coffee and television sets. Show all your calculations in support of your conclusion. Explain your answer. Output per Hour Worked Brazil Korea Coffee 2kg Ikg T.V. 1 3 2. Suppose the production of lamb is labour intensive and the production of car is capital intensive. Use the following table to discuss the trade pattern between Canada and Australia for car and lamb. Show all your calculations in support of your conclusion. Explain your answer. Using a hypothetical PPF show on graph how Canada can benefit from trade. Stock of Resources Canada Australia Сapital 50 machines 20 machines Labour 200 workers 120 workersarrow_forwardConstruct a production possibilities curve for a hypothetical country. Put public capital goods per year on the vertical axis and consumer goods per year on the horizontal axisarrow_forward
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