Bundle: Macroeconomics, 13th + Aplia, 1 Term Printed Access Card
13th Edition
ISBN: 9781337742375
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 21, Problem 1QP
To determine
The position of world’s
Expert Solution & Answer
Explanation of Solution
Most probably, the world’s position in the production possibility frontier is below the frontier. This is because there is a decrease in world’s production and consumption due to the trade restrictive measures adopted by the nations, such as quota and tariff. The nations produce and consume more if there are no restrictions. This is because they would not get any benefit with trade restrictive measures.
Economics Concept Introduction
Production possibilities frontier: PPF refers to the different combinations of goods and services that can be produced efficiently with the given resources by a firm.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Draw a Production Possibilities Frontier curve for an economy that produces milk and cookies. What happens to the frontier if a disease kills half of the economy’s cows by illustrating a second PPF curve after the disease
Draw a PPF that represents the production possibilities for goods X and Y if there are constant opportunity costs. Next, represent an advance in technology that makes it possible to produce more of X but not more of Y. Finally, represent an advance in technology that makes it possible to produce more of Y but not more of X.
Production possibilities. If the supply of capital falls by10 percent and the supply of labor increases by 10 percent, how will the PPF for wheat and cloth change?
Chapter 21 Solutions
Bundle: Macroeconomics, 13th + Aplia, 1 Term Printed Access Card
Knowledge Booster
Similar questions
- In the PPF below, if the economy moves from point A to point B, opportunity cost will: Hybrid cars A decrease. increase. not change. B Motorcycles F D Earrow_forwardSuppose that in the country of England, two goods can be produced on available agricultural land: wine and wool. Suppose that the opportunity costs of production are constant, so that the PPF is a straight line. Further, when all resources are devoted to wine production, England can produce 200 (thousand) barrels. When all resources are devoted to wool production, England can produce 400 (thousand) bushels of wool.What are the opportunity costs in England of producing a bushel of wool?arrow_forwardShow, using a curved PPF, what would happen if there was a terrible natural disaster that destroyed resources.arrow_forward
- Consider the PPF of a country with movies on the horizontal axis and computers on the vertical axis. Show the effects of each of the following: If the economy increases its production of computers relative to movies, impossibilities will be converted into possibilities.” Illustrate this statement with the PPF and explain what it means.arrow_forwardA country produces two goods: coconuts and umbrellas. Their production possibilities frontier (PPF) places coconuts on the x-axis and umbrellas on the y-axis. How would a drought that makes it difficult to grow coconuts but does not affect the production of umbrellas change the PPF? Neither the value of the x-intercept nor the y-intercept would change The value of the y-intercept would increase but the value of the x-intercept would not change The value of the x-intercept would increase but the value of the y-intercept would not change Both the value of the x-intercept and the y-intercept would increase The value of the y-intercept would decrease but the value of the x-intercept would not change The value of the x-intercept would decrease but the value of the y-intercept would not changearrow_forwardDraw another diagram putting on it the original production possibility frontier you drew for (a), labelling it AA. (i) Draw a new production possibility frontier on the diagram, labelling it PP, which shows the position after a devastating war has hit the economy. (ii) Draw another PPF labelling it QQ which shows an increase in productivity in the econory such that output from the same amount of resources increases by 50 per cent in the public sector but twice that amount in the private sector. already finished part A need help with part B thanks!arrow_forward
- State three reasons for the PPF to shift to the right or left. Describe the circular flow of income and expenditures Why do you think the PPF of the Philippines will possibly shift to the left? Compare the points inside the PPF and outside the PPF Give four examples of normative and positive statements How can you apply the principle of opportunity cost in your study? Please give an example Do you think the 24-hour store follow the marginal benefit principles? Why or why not If the fixed input is the two hectare of land and the variable input is fertilizer explain how the principle of diminishing return work in the outputs. Give an example of positive externality. Explain one factor that determines demand Differentiate between the consumer and producer surplus What information does the demand function convey? What is the information does the point of intersection between demand and supply curve convey? Give at least three conditions for the demand to shift to the right or left. Give an…arrow_forwardHello, can you help me explain this? Within the PPF framework, explain each of the following: (a) a disagreement between a person who favors more domestic welfare spending and one who favors more national defense spending; (b) an increase in the population; and (c) a technological change that makes resources less specialized.arrow_forwardWe are supposed to create a PPF with manufactured goods on the y axis and agricultural goods on the x axis. The question I'm having trouble with is: Congress is currently considering a new immigration policy that would allow people with the entrepreneurial skills and the money to start new businesses permission to emigrate to the U.S. if they start a business in this country that employs at least 5 U.S. workers. Show how you would represent the impact of this policy on the U.S. Explain briefly why you believe your picture changes in the way you illustrated.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning