Principles of Economics (MindTap Course List)
8th Edition
ISBN: 9781305585126
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 3.1, Problem 1QQ
To determine
The graphical representation of production possibility frontier .
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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?
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
Chapter 3 Solutions
Principles of Economics (MindTap Course List)
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- Explain the usefulness of a Production Possibilities Frontier and how it could be applied to an example to support an economic argumentarrow_forwardBread 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_forward
- 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 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_forwardExplain what is illustrated by the production possibilities frontier. Also, why is a production possibilities frontier typically drawn as a curve, rather than a straight line?arrow_forwardSuppose 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_forward
- Why 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_forwardAn outward shift of a nation's production possibilities frontier can occur due toarrow_forward
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