Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
8th Edition
ISBN: 9781337368087
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 3.1, Problem 1QQ
To determine
The graphical representation of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Draw an example of a production possibilities frontier for Robinson Crusoe, a shipwrecked sailor who spends his time gathering coconuts and catching fish. Does this frontier limit Crusoe's concumption of coconuts and fish if he lives by himself? Does he face the same limits if he can trade with natives on the island?
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
Explain the usefulness of a Production Possibilities Frontier and how it could be applied to an example to support an economic argument
Chapter 3 Solutions
Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Bread В A • Steel The graph shows the production possibility frontier for a country that can use it's resources to make either bread or steel. According to the graph, the opportunity cost of shifting reasources from making bread to making steel is increasing constant decreasingarrow_forwardThe 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 Aarrow_forwardLevel 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_forward
- The 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_forwardSuppose you have midterms in economics and astronomy tomorrow, and you only have four hours left to study. The accompanying table provides the combinations of time spent studying economics and astronomy and your expected exam scores. Hours spent studying economics Economics exam score Hours spent studying astronomy Astronomy exam score 0 60 0 70 1 80 1 83 2 90 2 87 3 95 3 90 4 98 4 92 a. Draw a production possibilities frontier to illustrate your study options. What is the opportunity cost, in terms of your grades, of studying one extra hour for economics or one extra hour for astronomy? b. If your goal is to maximize your combined exam scores, how many hours should you spend studying each subject? c. Your laptop dies and refuses to start up. All your notes and class materials are saved on its hard drive. How do your production possibilities change? Illustrate in your graph from part (a).arrow_forward
- Suppose the figure shown represents the production possibilities frontier for Country A. Country B offers to trade four trucks for every airplane. Assuming Country A specializes in airplane production, which of the following combinations of goods could Country A consume?arrow_forwardWhy is a production possibilities frontier typically drawn as a curve, rather than a straight line?arrow_forwardSuppose 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_forward
- An 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_forwardRiley and Chad run a water sports business in Noosa. They have to wash the surfboards/kayaks each time they are used and need to decide who should wash what to minimise opportunity cost. Surfboards (quantity/hr) Kayaks (quantity/hr) Riley 45 30 Chad 30 40 Which of the following statements are true: Chad should specialise in washing kayaks. Riley has a comparative advantage in washing surfboards. Riley's opportunity cost of washing 1 kayak is washing 1.5 surfboards. Riley should specialise in washing surfboards because he has an absolute advantage in washing surfboards.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning