Macroeconomics (Book Only)
12th Edition
ISBN: 9781285738314
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 2, Problem 4VQP
To determine
Scarcity,
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Assuming the PPF is shifting from PPFo to PPFn, which of the following explains the cause or causes of the economic growth depicted in this Figure?
a) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of X.
b) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of Y.
c) This Figure represents growth due to an increase in resources and/or improvement in technology that are not specific to either product.
d) This Figure represents growth due to an increase in specialization.
Using 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.
Using the graph below, use the production possibilities curve/ frontier PP1 curve to
answer the question following the graph.
Capital goods
PPP
Consumer goods
Which point(s) on the above graph relative to PP1 curve, represent(s) maximum
possible output and therefore productive technical efficiency?
A
B
A, B, C
D
Chapter 2 Solutions
Macroeconomics (Book Only)
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1VQPCh. 2 - Prob. 2VQPCh. 2 - Prob. 3VQPCh. 2 - Prob. 4VQPCh. 2 - Prob. 5VQPCh. 2 - Prob. 1QP
Ch. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QPCh. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 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. 9WNG
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- Explain the following economics concepts with PPF. a)scarcity b)Economic inefficiency c)Economic growtharrow_forwardWhich of the following statements is incorrect regarding the PPF model? a. A decrease in resource availability would cause the PPF to shift in closer to the origin. b. Points that are currently outside of the PPF could be attainable with increased resource availability and/or improved technology. c. The points on the PPF where the curve touches the axes are clearly the best ones for the firm to produce. d. If the goods sector of an economy is being studied, the axes will be labeled consumer (or consumption) goods and capital goods. e. If an entire economy is being studied, the axes will be labeled goods and services.arrow_forwardWhich of the following is a normative statement? Higher expenditures on health care will reduce infant mortality rates. To improve our economic security, we should reduce our dependence on oil imports. Increased defense spending will lead to higher budget deficits. International trade leads to expanded consumption opportunities.arrow_forward
- Between a straight line PPF and concave PPF, which one is more realistic? Why? Defend your answer. please read and answer step by step and use needed graph and Explain why it happend. No need Defination. Thank you sir.arrow_forwardWhat fundamental concept is behind the PPF model?arrow_forwardCountries with high per capita incomes are sometimes called affluent economies. Do these affluent economies face the problem of scarcity?arrow_forward
- Identify the normative economic statement from the following: Due to failing home prices and rising mortgage interest rates the amount of property foreclosures has increased. Interior designers should have the right to copyright their designs in order to promote innovation The government is considering increasing the gasoline tax to promote the use of public transportation The rising global demand for gasoline has led to the increase in the pace of crude oilarrow_forwardRefer to Figure 17.1. Which of the following causes the ppf to shift from ppf2 to ppf1? Group of answer choices a decrease in capital stock technological progress an increase in per capita income an increase in the labor forcearrow_forwardCompare and contrast the different economic systems: Free Market; Command & Control; Hybrid. - The Production Possibilities Frontier/Curve (PPF/PPC) Computing opportunity cost Identify feasible and infeasible production Know the model assumptions How economic growth in the model Identify economic growth in the PPF/PPCarrow_forward
- Consider two countries: Alland and Georgeland. Say that Alland can produce 48 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 68 units of food per person per year or 17 units of clothing per person per year. Compute each country's opportunity cost for each product. Tip: The list below contains the correct answers. Enter the correct amount for each of the 4 boxes making sure it is entered exactly as written below. Don’t omit or add space, digits or other characters. 0.25, 0.33, 1.33, 1.25, 1.40, 3, 4, 30, 40 Alland’s opportunity cost of 1 unit of food is [a] unit(s) of clothing Alland’s opportunity cost of 1 unit of clothing is [b] unit(s) of food Georgeland’s opportunity cost of 1 unit of food is [c] unit(s) of clothing Georgeland’s opportunity cost of 1 unit of clothing is [d] unit(s) of food Enter Alland or Georgeland in the appropriate box. Please make sure to enter each name exactly as written here. Don’t omit or add…arrow_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_forwardExplain how scarcity is the common foundation for PPCS and comparative advantagearrow_forward
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