Mindtap Economics, 1 Term (6 Months) Printed Access Card For Arnold's Macroeconomics, 13th
13th Edition
ISBN: 9781337621397
Author: Arnold, Roger A.
Publisher: Cengage Learning
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Chapter 2, Problem 7WNG
To determine
Explain which points represent efficiency.
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( a) why is the slop of PPF downward?
(b) why does the PPF look concave to the origin?
(c) What is positive economic analysis?
Introduction to the Production Possibilities Curve (PPC)
As you know, the basic economic problem is scarcity. Since we do not have enough scarce resources to satisfy
everyone's needs and wants, we all have to make choices. We must choose how to spend our time, our energy, our
money, and our material possessions, and for every choice that is made, a cost is suffered.
The relationship between choice and cost can be shown in a graph called a production possibilities curve, or PPC. For
example, consider a student who has 4 hours of free time in the evening. He or she can choose to spend some, all, or
none of those 4 hours studying for a test the following day. He or she could also use the time to catch up on sleep.
These choices can be graphed:
Choice A - spend all 4 hours studying
Choice B- spend 2 hours studying, and 2 hours getting extra sleep
Choice C- spend all 4 hours sleeping
Of course, other combinations of the 4 hours exist.
The student could study for 3.5 hours, and get an extra…
(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.
Chapter 2 Solutions
Mindtap Economics, 1 Term (6 Months) Printed Access Card For Arnold's Macroeconomics, 13th
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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