Economics (Book Only)
12th Edition
ISBN: 9781285738321
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 2, Problem 8QP
To determine
Explain what relationship implies about the cost.
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Use the data in the following graph to illustrate the law of increasing costs numerically. (Hint: Start at point E and move toward point A.)
A
180
C
D
150
120
90
60
30
30
60
90
120
150
180
Units of digital cameras
Moving from point E toward point A, we give up (Click to select) v
players.
amounts of digital cameras for each gain of (Click to select) V
DVD
The opportunity cost of moving from:
E to D is (Click to select) v
digital cameras;
D to C, (Click to select) V digital cameras;
C to B, (Click to select) V digital cameras;
and B to A, (Click to select) digital cameras.
Units of DVD players
Assume the economy can produce either sports utility vehicles (SUVS) or minivans. The graph below depicts the
current production possibilities frontier (PPF). Suppose several new factories are built. Move the end points of
the PPF below to show how the PPF changes. Assume that the factory construction affects the economy's ability
to produce both minivans and SUVs.
Quantity of minivans
Quantity of SUVs
PPF
This is an example of:
economic stagnation.
economic recession
economic contraction.
economic growth.
As an economy grows,
A) its PPF shifts outward.
B) the opportunity cost of production will approach 0.
its PPF does not shift; instead, the production point moves from inside the
PPF to be closer to the PPF.
D) it can eliminate scarcity.
E) the opportunity cost of production will increase.
Chapter 2 Solutions
Economics (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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- If an unattainable point outside a production possibilities curve can become an attainable and even an efficient point, can an inefficient point become an efficient point in the production possibilities curve model? Explain with a graph.arrow_forwardSuppose the fictional country of Katmai produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for millet, an agricultural good, and microprocessors, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of avian flu that sickens millions of workers. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. MICROPROCESSORS (Thousands) 180 150 120 90 60 30 30 o 70 770 140 PPF 210 280 350 420 MILLET (Millions of bushels) PPFarrow_forwardUse the figure below to answer the following questions. What is the opportunity cost of increasing investment from 6 units to 8 units? Production Possibilities 10 10 CONSUMER GOODS (units per time) INVESTMENT GOODS (units per time)arrow_forward
- Solve it on paper!arrow_forwardDraw a marker diagram showing how the equilibrium point changes if the production technology improves all else equalarrow_forwardShifts in production possibilities Suppose South Africa produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for barley, an agricultural good, and locomotives, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of avian flu that sickens millions of workers. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.arrow_forward
- For each point on the PPF below identify if it is i) attainable or unattainable, ii) efficient or inefficient.arrow_forwardCAPITAL GOODS Use the diagram below to answer the questions that follow. M. CONSUMER GOODS (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 mnove the economy from Point V to Point W? Question 3 F7 PrtSc Insert 88 F10 F11 6 F12 & 9- 7.arrow_forwardA ng.cengage.com/static/nb/ui/evo/index.html?elSBN=97803571336998&id%3D1391657528&snapshotld%3D2768299& nail O YouTube Maps n Classes O Mail - Jaira Ross -. Documents | Feder... O patreon MindTap - Cengage. O Your Sets | Quizlet AK Watch Boruto: Naru. CENGAGE MINDTAP Q Search this co Homework (Ch 03) Consider two neighboring island countries called Arcadia and Euphoria, They each have 4 million labor hours available per week that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. nd Study Tools otions Corn Jeans Country (Bushels per hour of labor) (Pairs per hour of labor) uccess Tips Arcadia 12 24 Euphoria 8 32 uccess Tips Initially, suppose Arcadia uses 1 million hours of labor per week to produce corn and 3 million hours per week to produce jeans, while Euphoria uses 3 edback million hours of labor per week to produce corn and 1 million hours per week to produce jeans.…arrow_forward
- Suppose the fictional country of Everglades produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for millet, an agricultural good, and electric scooters, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of avian flu that sickens millions of workers. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. PPF0701402102803504201801501209060300ELECTRIC SCOOTERS (Thousands)MILLET (Millions of bushels) PPFarrow_forward11. 111. You may use this diagram below, to show the movement of the PPC Curve above. 4 CDs State the points which represent: Scarcity (8.75M) Choices (8.75M) Inefficiency (8.75M) Opportunity (8.75M) (Ctrl) - PPC1 TVsarrow_forwardSuppose the fictional country of Biscayne produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for sorghum, an agricultural good, and electric scooters, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a time-saving innovation in the manufacturing of electric scooters. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. ELECTRIC SCOOTERS (Thousands) 180 150 120 90 30 0 30 60 90 PPF 120 SORGHUM (Millions of bushels) 150 180 бо PPF ?arrow_forward
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