1. Working with Numbers and Graphs Q4 Consider an economy that produces two goods: X and Y. The following two graphs (A and B) each depict a scenario where the economy starts on the green production possibilities frontier (PPF₁). Each scenario depicts a shift from the first PPF to the second PPF in blue (PPF2). Use the graphs to answer the question that follows. Graph A Y PPF 2 PPF X O Graph A Graph B ? Graph B Y Which graph depicts a technological breakthrough in the production of good Y only? X PPF₂ PPF₁
Q: A difference in opportunity costs between businesses can lead to a comparative advantage in the…
A: The value that a business forfeits when it selects one alternative over another, whether the loss be…
Q: Refer to the following table. What is the value of the CPI for 2021? What is the rate of inflation?…
A: The consumer price index measures the change in the cost of the market basket over a period of time.…
Q: During a certain period of time, the economic growth of a country is reflected through some phases…
A: An economic cycle, usually referred to as a business cycle, describes the swings in the economy…
Q: Suppose a single parent can work up to 16 hours per day at a wage rate of $30 per hour and has no…
A: A budget constraint represents the limit on the amount of money an individual or entity has…
Q: Consider the per capita real GDP data for countries from the former Yugoslavia, which broke apart in…
A: Real GDP per capita, also known as income per capita, is a measure of a country's economic output…
Q: Gas Light, Inc. is currently the only natural gas supplier in a region. The company maximizes its…
A: Deadweight loss is a concept in economics that represents the inefficiency and loss of economic…
Q: Table 3 Quantity Price 1 2345 2 3 4 5 6 7 8 9 10 35 29 23 17 8 Total revenue 35 64 120 99 80 Average…
A: An individual, group, or business that dominates and controls the market for a particular commodity…
Q: Q15. For the cash flows shown, determine the incremental cash flow between machines B and A (a) in…
A:
Q: a) Which country has an absolute advantage in bananas? In wheat? b) What is the relative price of…
A: Absolute advantage: When a country or a person can produce more of a good or service in less time…
Q: prove diagrammatically that a monopolistic firm charges a higher price than a competitive firm
A: A monopolistic firm, which is the exclusive provider of a particular commodity or service, is…
Q: An economy's production possibilities frontier is fixed in the long run. True False
A: We need to determine the conditions under which a production possibilities frontier (PPF) shifts…
Q: firms all follow each other when any one of them changes price. market demand is more elastic than…
A: The graph below shows the Chamberlin model. The dd curve is based on the assumption thata. Firms all…
Q: Refer to Figure 2-3. It is not possible for this economy to produce at point O a. C. O b. B OCD Od.A
A: It can be defined as a concept in economics, that shows a situation where resources are distributed…
Q: Based on the current economic situation do you expect the employment demand for graduating engineers…
A: Given that it gauges jobs, wage increases, and overall economic wellness, the job market is a key…
Q: Suppose output (Q) is related to labor (L) and capital (K) in the following nonlinear way: Q =…
A: Statistical significance indicates whether observed data results from a real effect or mere chance.…
Q: What rate of interest compounded annually would result in receipt of $28,530 in eight years from an…
A:
Q: Calculate both the change in government purchases of goods and services and the change in government…
A: Real GDP: refers to the GDP when inflation is adjusted in the calculations. There exists inflation…
Q: Which of the following is NOT an input to manufacturing planning and control system? O a. Standard…
A: Manufacturing planning and control system, often referred to as MPCS, is an integrated approach to…
Q: If your revenue during the first year of business is $48,000, and you incurred $4,000 in expenses…
A: It can be defined as the profit taking into account both the explicit costs of a business and the…
Q: Refer to the above Figure A. In the short-run this firm would shut-down at a price of a) $120 b)…
A: Shut-down is a short-run concept. A firm will shut down its production in the short run if the…
Q: Adam picked 240 oranges from his orchard. He packed them equally in 12 bags and sent them to the…
A: Resource allocation refers to the process of distributing available resources among different uses,…
Q: minimal cost for obtaining a sp
A: Utility is defined as the total satisfaction that any consumer derives after he/she consumes any…
Q: A decrease in supply is represented by the movement from
A: Movement along the supply curve is the movement from one point on the supply curve to another point…
Q: Due to the integrated nature of their capital markets, investors in both the United States and the…
A: The nominal rate is the interest rate or return stated on a financial instrument without accounting…
Q: Deborah and Janet are roommates. They spend most of their time studying (of course), but they leave…
A: Absolute advantage is an economic concept that refers to a situation in which a country, individual,…
Q: a. Using the information below, and assuming that you want to maintain your purchasing power from…
A: The Consumer Price Index (CPI) is a measure of inflation that tracks changes in the prices of a…
Q: Problem 1- Questions d-g please!!
A: Budget Line: given the price of 2 goods and consumer’s income. The budget line shows different…
Q: During the Great Depression, Keynes advocated the use of Multiple Choice O monetary: aggregate…
A: Before the Great depression the classical economic thought believed that markets could take care of…
Q: 2.6) What is the present worth of an expenditure of $25,000 in year 8 if the interest rate is 10%…
A: Present worth, also known as present value, is a financial concept that refers to the current value…
Q: Please watch the following TED Talk titled “The new age of corporate monopolies”:…
A: In the TED Talk, the speaker mentioned that competition is important for democracy. He argued that…
Q: If Synergy believes Dynaco will go with a large budget, it will choose a budget. If Synergy believes…
A: Given,Synergy’s DecisionLarge BudgetSmall BudgetDynaco’s DecisionLarge Budget$30 million, $20…
Q: Do the Philippines and Filipinos benefit from global economic and political integration? (500 words)
A: The Philippines and Filipinos can benefit from global economic and political integration in a number…
Q: The following graph input tool shows the daily demand for hotel rooms at the Oceans Hotel and Casino…
A: Demand FactorValueAverage American household income$50,000 per yearRoundtrip airfare from Pittsburgh…
Q: How does an increase in government borrowing affect the equilibrium interest rate in the market for…
A: The loanable funds market is a theoretical framework used to understand the dynamics of borrowing…
Q: It is often argued that the effect of a demand shock depends on the state of the economy. In…
A: A demand shock in an economy is a sudden increase or decrease in the demand for goods and services.…
Q: Macroeconomics is the study of aggregate behavior in a particular national economy. Macroeconomists…
A: The three macroeconomic variables - growth, employment, or inflation are the most important and are…
Q: During the last 20 to 30 years, there have been a number of countries whose economies have…
A: ***Since the student has posted multiple questions, the expert has solved the first question. If the…
Q: Suppose an economy is experiencing a high rate of housing foreclosure due to an economic downturn.…
A: In an economy, various sectors are interconnected, and changes in one can influence others.Housing…
Q: Do the Philippines and Filipinos benefit from global economic and political integration? Make your…
A: Potential benefits of global economic and political integration for the PhilippinesIncreased trade:…
Q: Eden, a country, produces just two output goods: apples and snakeskin handbags. In 2014 the prices…
A: Now the IS curve indicates the output market.The total output /income in the market is the sum of…
Q: 1. Refer to the diagram below: Price (per bushel) $10 9 8 7 65402 3 2 1 0 X 2 4 S 6 8 10 12 Quantity…
A: Market equilibrium is a state where supply and demand intersect/cut , setting a stable price and…
Q: 1. Consider the following simple Keynesian model, Y=C+I+Go C = 200+ 0.8Y I = 1000-2000 (i) Rewrite…
A: Cramer's model typically refers to Cramer's rule, which is a mathematical technique used to solve…
Q: According to Barr, the SES into which you were born and spent your childhood has more predictive…
A: It can be defined as a socio-demographic term that represents an individual's or a family's position…
Q: What is the equilibrium price in this market? per bushel At what price is there neither a shortage…
A: The equilibrium price is the price at which the supply of goods matches the demand for them.In other…
Q: Company B is selling a product with a non-linear price function. The price function is given by p =…
A: ***Since the student has posted multiple subparts, so the expert is required to solve only the first…
Q: A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed…
A: Savings refer to the portion of an individual's or household's income that is not spent on immediate…
Q: A total of $55,000 is borrowed and repaid with 60 monthly payments, with the first payment occurring…
A: Interest is a fee or charge that is typically calculated as a percentage of a sum of money, often…
Q: Create a Graph For this assignment; you will produce a marginal cost anatys graph and answer some…
A: Monopolies can lead to higher prices, reduced consumer choice, and potential inefficiencies in…
Q: aryan plans to offer the services for $45 per lesson, as (A) Write down the total cost as a…
A: Total cost(TC): refers to the total cost incurred by the industries in the production process. Costs…
Q: Using the data in the following table, show what happens to the firm's output choice and profit if…
A: Perfect competition, also popular as pure competition, is an ideal market structure where numerous…
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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 decreasingProblem 1: Production Possibilities Frontier Consider an economy that produces bicycles and autos. The production possibilities schedule shown below denotes the points on the production possibilities frontier. Points Amount Bicycles Amount Autos A 10 B 8 D E 5 8 12 14 15 a) Draw the production possibilities frontier in a clearly labelled graph. You can assume the points on the frontier are connected by straight lines. Please put bicycles on the x-axis and autos on the y-axis. b) Is point E more efficient in production than point C? Explain. c) Based on this production possibility frontier, can the economy currently produce 8 bicycles and 10 autos? If not, explain what would need to happen to allow the economy to produce 8 bicycles and 10 autos. d) True/False/Uncertain (and explain): Point B more efficient in allocation than point A. e) Does this production frontier have increasing opportunity costs? Explain, and also explain why it is common for production frontiers to have increasing…Consider two individuals, Fred and Barney. In one hour, Fred can produceeither 15 gallons of beer, or 3 gallons of wine. In one hour, Barney can produce2 gallons of beer or 4 gallons of wine. Assume both goods can be produced incontinuous quantities. Assume that each person wants to consume 3 gallons of wine, then as muchbeer as they can. Determine what each person will end up consumingi) when they cannot trade.ii) when they can trade at a price of 1gallon wine = 2 gallons beer.Use this to explain why trade benefits both consumers.
- Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have ten hoursof time available. The can use their time to do one of two things: make pancakes or make hamburgers.Bob can make two hamburgers in an hour or one pancake in an hour. Jake can make three pancakes in anhour or two hamburgers in an hour. Use this information to answer the following questions:a.) Draw Jake and Bob’s PPFs, with hamburgers on the x-axis.b.) Give equations for Jake and Bob’s PPFs in y = mx+b form, still treating hamburgers as the xvariable.c.) Who has absolute advantage in the production of hamburgers? Who has absolute advantage inthe production of pancakes?d.) Who has comparative advantage in the production of hamburgers? Who has comparativeadvantage in the production of pancakes?e.) Can Bob and Jake both benefit from trade if the terms of trade are one pancake per hambruger?Why10 3 4. 5 CARS Suppose Becky is currently using combination D, producing one car per day. Her opportunity cost of producing a second car per day is per day.. Now, suppose Becky is currently using combination C, producing two cars per day. Her opportunity cost of producing a third car per day is per day. From the previous analysis, you can determine that as Becky increases her production of cars, her opportunity cost of producing one more car Suppose Becky buys a new tool that enables her to produce twice as many cars per hour as before, but it doesn't affect her ability to produce balls. Use the green points (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more cars per hour, Becky's opportunity cost of producing balls is it was previously. BALRefer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): Production Alternatives Type of Production A B D E Automobiles 4 8 Forklifts 30 27 21 12 a. Show these data graphically. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total). 10 Tools 8 PPC 4 2 10 20 30 40 50 Forklifts Upon what specific assumptions is this production possibilities curve based? (Click to select) Automobiles
- 25 Initial PPC 20 New PPC 15 10 2 3 4 5 BOATS PER DAY Suppose Yvette is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is per day. Now, suppose Yvette is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day is per day. From the previous analysis, you can determine that as Yvette increases her production of boats, her opportunity cost of producing one more boat Suppose Yvette buys a new tool that allows her to produce tvice as many boats per hour as before but doesn't affect her ability to produce balls. Use the green points (triangle symbol) to plot her new PPC on the previous graph. Because she can now make more boats per hour, Yvette's opportunity cost of producing balls is it was previously. BALLS PER DAY1. Assume you are on an iceland, where you can produce different combinations of coconuts and fish that can be harvested in a given week. The table below shows these combinations. Notice that you can produce either all crabs, all pineapples, or a mix of the two. Coconuts Fish 25 3 15 4 12 5 a) Draw PPF using the information from this table; b) Calculate opportunity cost of coconuts if you decide to increase their harvest from 3 to 5; c) Calculate the slope of the PPF if you increase their harvest from 3 to 5; d) Will you harvest 5 coconuts and 12 fish on any day of the week? Why? e) Will you harvest 5 coconuts and 4 fish on any day of the week? Why?Jake is a talented artist who sells hand-crafted goods on his website. Jake currently crafts and sells both tea towels and embroidered sweaters. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. Choice A B с D E MBROIDERED SWEATERS 25 10 0 1 (Tea towels) 8 6 4 2 2 0 Hours Crafting 3 On the following graph, use the blue points (circle symbol) to plot Jake's initial production possibilities frontier (PPF). 4 TEA TOWELS 5 (Embroidered sweaters) 0 2 4 6 6 8 7 8 O Initial PPF A (Tea towels) 4 New PPF 3 2 1 0 (?) Produced (Embroidered sweaters) 0 12 17 19 20 Suppose Jake is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is per day. Now, suppose Jake is currently using combination C, producing two tea towels per day. His opportunity cost of producing a third tea towel per day is per day. ▼ From the previous…
- 2. Consider an economy that produces only two goods: asparagus and candy canes. The following table describes the quantities of each good that can be produced: Candy Canes 60 40 20 0 Asparagus 0 10 20 30 (a) Plot the production possibilities frontier for this economy. Be sure to label both axes and each intercept. (b) Does this PPF follow the law of increasing opportunity cost? Why or why not? (c) A major pandemic arises that wipes out one third of the population. Illustrate and explain how this would affect the PPF from part (a).Sue Tom Good A 10 4 Select one: Good B 15 5 As shown in the table above, Sue and Tom each can produce two different types of goods. For Sue, if she only produces Good A, then she can produce 10 units of Good A per day. If she only produces Good B, then she can produce 15 units of Good B per day. For Tom, if he only produces Good A, then she can produce 4 units of Good A per day. If she only produces Good B, then she can produce 5 units of Good B per day. Which of the following statement is correct about comparative advantage? O a. Tom has a comparative advantage over Sue in the production of Good A. Sue has a comparative advantage over Tom in the production of Good B O b. Tom has a comparative advantage over Sue in both tasks O c. Sue has a comparative advantage over Tom in both tasks O d. Sue has a comparative advantage over Tom in the production of Good A. Tom has a comparative advantage over Sue in the production of Good B2. Below is a production possibilities frontier (PPF) for Happyland, acountry that produces only two goods- wine and cheese. wine cheese a) Explain what the production possibilities frontier is and how it illustrates scarcity. b) What happens to the marginal opportunity costof cheese production in Happyland as the country increases its cheese production? (increase, decrease, unchanged or indeterminate?) Explain how you can tell this from the PPFand why it happens. c) Briefly describe two specific policies the government of Happyland could undertake to shift out their PPF in future periods. (By specific policies, I mean something they can actually do to change productivity for either or both of these goods. "Increase resources," for example, is not a specific policy. What resources and what type of policy could increase the resources used for either of these products?)