Question Z Draw a production possibility frontier. The vertical axis shows the production of public sector goods and the horizontal axis shows production of private sector goods. The economy is currently producing at point A on the frontier where 50 per cent of all production is devoted to public sector goods and 50 per cent to private sector goods. (a) Mark the following points on your drawing. (i) Point A. Point B which shows production following the election of a govemment which increases government spending on both

Question Z Draw a production possibility frontier. The vertical axis shows the production of public sector goods and the horizontal axis shows production of private sector goods. The economy is currently producing at point A on the frontier where 50 per cent of all production is devoted to public sector goods and 50 per cent to private sector goods. (a) Mark the following points on your drawing. (i) Point A. Point B which shows production following the election of a govemment which increases government spending on both

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 9RQ: In what ways (it) company investments in research and development create positive externalities?

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Question 2 Draw a production possibility frontier. The vertical axis shows the production of public sector goods and the horizontal axis shows production of private sector goods. The economy is currently producing at point A on the frontier where 50 per cent of all production is devoted to public sector goods and 50 per cent to private sector goods. (a) Mark the following points on your drawing. (i) Point A. (ii) Point B which shows production following the election of a govemment which increases government spending on both education and the National Health Service. (iii) Point C where unemployment is present in the economy. (iv) Point D where the government takes over production of all goods and services in the economy. (b) Draw another diagram putting on it the original production possibility frontier you drew for (a), labelling it AA. (i) Draw a new production possibility frontier on the diagram, labelling it PP, which shows the position after a devastating war has hit the economy.…
Minerals 25 (millions of tons) 20 15 10 5 5 10 15 20 25 Grapes (millions of tons) Figure 1 Production possibility frontier for Highland Towards the right of Figure 1 are two circular red markers with a line between them that you can use to draw a production possibility frontier on Figure 1. You can move the markers with the mouse by clicking on them and dragging. Alternatively, you can tab to each marker and then use the keyboard arrow keys. Decide where to position the red markers based on the information below. There are two countries, called Highland and Lowland, with very different geography. They both produce grapes and dig for minerals, using only labour, with constant returns to scale. Figure 1 shows the production possibility frontier for Highland and the table shows the working population and productivity for Lowland. Working population and production possibilities Working population Production of tons of grapes per person per year Production of tons of minerals per person per…
In what ways (it) company investments in research and development create positive externalities?
Price ($/ton) Sus A 350 B 300 E 200 G Dus K 100 10 15 20 Quantity of Sugar (milliontons) A) Using the prior graph if the U.S. did not trade what price would the good cost? If the world price was $200 what quantity would the U.S. produce? What quantity would be imported. What is consumer surplus at the world price? What is producer surplus at the world price? (Using labels do not use math) Who benefits from the free trade and who gets hurt? B) If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is hurt? What quantity will U.S. producers now produce? What happens to consumer surplus and producer surplus at this new price? What does the government gain from the tariff? C) Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the most used trade restriction?
coconuts 1000 (a) Graph 1 (b) Graph 2 (c) None of the above. GRAPH 1 (a) country A; 3.5 fish (b) country A; 0.3 fish (c) country A; 4 fish (d) country B; 0.2 fish (1500, 500) 4000 fish coconuts 1000 GRAPH 2 (2500, 500) 4000 fish Answer: (b) 7. If Country A and Country B engaged in specialization and trade,[] will specialize in produc- ing coconuts. A price (in terms of number of fish) acceptable to both countries for a coconut is [ ].
1. Write down an exchange economy model with two individuals and two goods, in whichthere is no consumption externality. State and explain the key assumptions of the model.Using the model, answer the following questions:(a) Explain carefully how the concept of Pareto efficiency differs from that of socialwelfare.(b) State the Second Theorem of Welfare Economics and explain carefully why it holds.What is the importance of the assumption of convex preferences to this theorem?(c) Explain the concept of the utility possibility frontier. What is the role of the utilitypossibility frontier in the social welfare maximization problem of a welfarist society?
3 c. Explain the concept of production possibility frontier and interpret the slope of theproduction possibility frontier in economic terms.
1. Consider a market of two farmers which are also consumers. The following table contains the maximum production levels over a time period of 8 hours for both wheat and wine. As usual, we assume linear production possibility frontiers. Farmer Wheat Wine 10kg 15kg Albert 21 Berta 11 (a) Identify absolute advantages for each good. (b) Identify comparative advantage. (c) How does the comparative advantage change when calculated over 1 hour of production time? (d) How should Albert and Berta specialise? Who will trade what? (e) Given their production and consumption before trade, Production/Consumption WVheat Wine Albert 5kg 7.5kg 11 Berta 0.51 Assume production changes to the following . 1
An economy produces two goods ,X and Y .lt uses two means of production, labour and capital. A unit of labour can produce either 1unit of X or 4units of Y (or linear combination of the two).A unit of capital can produce either 4units of X or 1unit of Y (or linear combination of the two)there are 100units of each means of production. (i) Draw the production possibility frontier of the economy when the two goods can only be produced by a mixture of both factors. (ii)What will be the opportunity cost of X if the economy produces 50units of X ? (iii) Given that the production technology is linear ,will the opportunity cost of X remain unchanged when we produce 90units of X ? (iv)Briefly explain the difference between the PPC with a constant opportunity cost and the PPC with an increasing opportunity cost as more output of one good is produced. Use a well labeled diagram to explain your answer?
1. Supports the analysis with visual aids such as charts, graphs, or tables when applicable on global economic issue of world hunger and poverty at Nigeria country.
Task No 1 In an island with a tropical climate, four people are living. They collect coconuts and turtle's eggs. Everyone collects either 30 coconuts or 15 turtle's eggs per day. a) Draw the production possibility curve of this island. Сосоnuts 360 300 240 180 120 60 15 30 45 60 75 90 Turtle's eggs b) Supposing that some technique is brought to the island. It will help to each of four working inhabitants to collect 40 coconuts per day. Show on the graph how the production possibility curve of this island will be shifted.
4. A zoo cannot have everything it wants. It has to make choices. The zoo committeehas decidea that it can have several concession stands. It has to decide how many popcorn stands and how many cotton candy stands to have scattered around the zoo, The committee made up a table of the different combinations depending upon what the committee has determined to be the cost of each stand. Now the committee has to decide what combination is right. a. Use the table below to graph & label a Production Possibilities curve on the grid below Popcorn or Cotton Candy Popcorn, Cotton Candy Popcorn 10 1 9 2. 4 4 Cotton Candy b. Next, label a point of underutilization (inefficiency). Call it Point A, Next, label apoint of efficiency. Call it Point B. Last, label a point that is now unattainable. Call it Point C. c. Look at the table: To get one popcorn stand, how many cotton candy stands have to be given up (marginal/opportunity cost)? 10 -9 = ? d. What is the marginal/opportunity cost of 3 popcorn…