The production possibilities curve below shows the hypothetical relationship between the production of guns (national defense) and butter (social goods) in an economy.
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- What is Production Possibility Frontier? Draw and explain a production possibilities frontier for an economy that produces milk and cookies. What happens to this frontier if disease kills half of the economy’s cow population?Could a person or country ever produce a combination of goodsthat lies outside the production possibilities frontier? Why or why not?The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. Quantity of Quarks 800 700 600 500 400 300 200 100 A 2 4 6 8 10 12 14 16 18 20 Quantity of Quirks Select one: Refer to the graph above to answer this question. If new technology increased the output of quirks by 50%, how many quirks could be produced if 700 quarks were produced? B A. 9 quirks. B. 18 quirks. C. 10 quirks. D. 20 quirks. E. No quirks.
- Table 2.1.1 The following table gives points on the production possibilities frontier for goods X and Y. Point Production of X Production of Y A B C) 4 units of Y. OD) 8 units of Y. E) 4 units of X. C D E 0 4 8 12 16 40 36 28 16 0 Refer to Table 2.1.1. The opportunity cost of increasing the production of X from 8 to 12 units is OA) 12 units of Y. B) 16 units of Y.Suppose a society called Atlantis faces the production possibilities curve (PPC) as given below. a) what is the opportunity cost'Sf increasing fish production from 300 pounds to 500 pounds? b) Will Atlantis choose to produce at point G? Please briefly explain. Quantity of fish (pounds) F 675 650 600 E 500 300 Atlantis PPFWhy is it inefficient for an economy to be inside the production possibilities frontier?
- vidence accumulates that the use of chemical fertilizers, which increases agricultural production greatly, damages water quality. A) Explain in words how you would draw a production possibility curve to depict this (which “good” should be placed on each axis) and why your curve would have a particular shape. B) In what ways does the production possibilities curve from part a) reflect scarcity, choice and opportunity cost? C) Discuss THREE possible impacts of an improved fertilizer on the production possibility frontier from part a.What is a production possibilities frontier? How can we show efficiency on a productions possibilities frontier? How can we show inefficiency? What causes a production possibilities frontier to shift outward?2. 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?)