Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 3, Problem 1SPPA
To determine
Graphical Representation of
Expert Solution & Answer
Explanation of Solution
Inefficient points are those in which resources are not fully utilized or are wasted. Economy is producing output inside Production possibility curve. Point A is inefficient as 300 pounds of beef and 100 bushel of corn is produced. At this point, resources are wasted.
Unattainable combinations are such which lie outside PPF curve. These are the combination of output production which cannot be produced as resources are not available for such combination. Point B in unattainable point in the above figure.
Efficient Point: Production is said to be efficient at which an economy can produce maximum output using its existing resources. There is no scope of increasing production, only alteration can be done. Resources are fully employed and attainable. Point C is efficient point.
Economics Concept Introduction
Concept Introduction:
Production efficiency is the level of optimum level at which am economy can produce maximum output using its existing resources. There is no scope of increasing production, only alteration can be done.
An inefficient output is one in which more output of one good is produced without reducing the other good's output.
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Students have asked these similar questions
The table provides information about the production possibilities of a firm that produces bed linens.
Quilts
(per hour)
Possibility
A
B
C
Pillows
(per hour)
0
8
and
and
and
16
12
0
Draw points that show the three possibilities defined by the table. Label them A. B. and C.
Draw the firm's PPF by connecting the points. Label it.
Along this PPF, the quantities of
A. all goods other than pillows and quilts are increasing
OB. all goods other than pillows and quilts remain constant
OC. pillows and quilts are either increasing or decreasing, so there is no scarcity
OD. all goods other than pillows and quilts are decreasing
could someone draw a graph on paper please?
a. Using one of the graphing tools described in the directions, plot the Production Possibilities Curve for Teavana.
b. Find the combination of Jade Citrus Mint Tea and Spiced Apple Cider of 47 Jade Citrus Mint Tea and 35 Spiced Apple Cider. Label this point F. What term best describes this point?
c. Find the combination of Jade Citrus Mint Tea and Spiced Apple Cider of 16 Jade Citrus Mint Tea and 20 Spiced Apple Cider. Label this point G. What term best describes this point?
5.
Draw a Production Possibilities Graph for Toyota using the following information:
A
В
C
D
E
F
G
Trucks
20
28
35
40
43
45
Cars
54
52
49
43
35
25
Plot the combination with 30 cars and 40 trucks and label it “Y." Plot the combination with 40 cars and 50 trucks
and label it "X." Explain what is happening at these points.
Chapter 3 Solutions
Foundations of Economics (8th Edition)
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