Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781337091985
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 3.1, Problem 1QQ
To determine
The graphical representation of
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What would a straight-line production possibilities frontier between grape juice and apple juice on Fruity Goodness Orchards say about opportunity costs?
The following graphs show the production possibilities frontiers (PPFS) for Shenandoah and Denali. Both countries produce almonds and basil, each
initially (i.e., before specialization and trade) producing 18 million pounds of almonds and 9 million pounds of basil, as indicated by the grey stars
marked with the letter A.
BASIL (Millions of pounds)
48
42
36
30
24
18 PPF
୯
12
6 Cả
0
0
I
I
6
Shenandoah
18,9
12 18 24 30 36
ALMONDS (Millions of pounds)
42 48
BASIL (Millions of pounds)
48
42
36
30
24
18
12
6
0
0
PPF
6
Denali
12 18 24 30 36 42 48
ALMONDS (Millions of pounds)
?
Shenandoah has a comparative advantage in the production of
, while Denali has a comparative advantage in the
production of
. Suppose that Shenandoah and Denali specialize in the production of the goods in which each has a
comparative advantage. After specialization, the two countries can produce a total of
million pounds
of basil.
million pounds of almonds and
The figure below shows the production possibilities frontier for Good A and Good B. In the figure below, given the quantity of resources
and level of technology, which of the following points is unattainable?
Figure 2.2
Good B
9
d
b
Good A
Chapter 3 Solutions
Brief Principles of Macroeconomics (MindTap Course List)
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- Level 2: Opportunity Cost, Comparative Advantage, and Specialization The opportunity cost of gathering firewood is then the calories of fish given up per log of firewood gained. (Fill in the blanks in the formula and perform the calculation). Opportunity Cost of Gathering = cals fish logs woo = calories per logarrow_forwardThe graph below shows a production possibilities frontier for shoes and candy bars in Z-land. Using the straight-line tool, add a PPF for Y-land. If Y-land uses all its resources to produce shoes, it can make 100 pairs. If it uses all its resources to make candy bars, it can make 400. Assume that the PPF is linear. To refer to the graphing tutorial for this question type, please click here. 1 Shoes 800 750 700 650 600 550 500 450 400 350 300 250 200 1 PPF for Z-land and Y-land SUBMIT ANSWERarrow_forwarddraw a production possibility frontier showing a combination of two goods that a country could produce and an area of inefficiency and another unattainablearrow_forward
- Suppose the Zimbabwe had the following production possibilities in 2007: Capital Goods 0 150 250 300 Consumption Goods Point A B с D 350 300 250 200 150 100 50 Consumption Goods 350 300 200 0 50 100 150 200 250 300 350 Capital Goods Plot the PPF on the following diagram above. What is the opportunity cost of producing 1 more capital good as the economy moves from point A to point B? SHOW YOUR WORK.arrow_forwardAn outward shift of a nation's production possibilities frontier can occur due toarrow_forwardThe graph shows the Production Possibility Frontiers of Writ (orange, dotted line) and Greg (green, solid line) when they gather pumpkins or branches individually. Drag and drop the points A, B and C to form the Production Possibility Frontier when Wirt and Greg specialize and exchange the production of branches and pumpkins. Note: Use the circle in the top, left corner of the textbox as the point. Drab Point A as the top left point. Drag Point B to the point at which the joint PPF changes slope. Drag Point C to the bottom right point. Total Branches 6 5 4 3 2 1 O 0 1 2 3 4 5 6 Point A Point B Point C Greg's PPF Wirt's PPF Total Pumpkinsarrow_forward
- 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 diseasearrow_forwardnot use ai pleasearrow_forwardSuppose the United Kingdom produces only two goods: barley and cars. The following graph shows the United Kingdom's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. 100 80 CARS (Millions) Ô 60 PPF A E D x x c a aarrow_forward
- The following graphs show the production possibilities frontiers (PPFS) for Maldonia and Lamponia. Both countries produce lemons and tea, each initially (i.e., before specialization and trade) producing 12 million pounds of lemons and 6 million pounds of tea, as indicated by the grey stars marked with the letter A. TEA (Millions of pounds) 32 28 226 24 PPF 20 16 12 28 Maldonia 0 4 8 12 16 20 24 LEMONS (Millions of pounds) 28 32 22 ? TEA (Millions of pounds) 32 22 28 24 20 16 12 PPF Lamponia A 0 04 8 12 16 20 24 28 LEMONS (Millions of pounds) 32 ? Maldonia has a comparative advantage in the production of production of while Lamponia has a comparative advantage in the . Suppose that Maldonia and Lamponia specialize in the production of the goods in which each has a million pounds of comparative advantage. After specialization, the two countries can produce a total of Jemons million pounds of tea andarrow_forwardCan you help me answer the questions in the imagearrow_forwardexplain how ppf can be used to illistate the loss of scarce resourcesarrow_forward
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