Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971509
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 3, Problem 1PA
Subpart (a):
To determine
The production possibility frontier for Maria.
Subpart (b):
To determine
The opportunity cost .
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Maria can read 20 pages of economics in an hour. Shecan also read 50 pages of sociology in an hour. Shespends 5 hours per day studying.a. Draw Maria’s production possibilities frontier forreading economics and sociology.b. What is Maria’s opportunity cost of reading100 pages of sociology?
Below is a production possibilities table for DVDS and computers:
Production Alternatives
Type of Production
A
в
D
E
60
Computers
DVDS
20
40
80
80
70
55
35
Instructions: Enter your answers as a whole number.
a. What is the opportunity cost of moving from point A to point B (20 additional computers)?
DVDS
b. What is the opportunity cost of moving from point B to point C (20 additional computers)?
DVDS
c. What is the opportunity cost of moving from point C to point D (20 additional computers)?
DVDS
d. What is the opportunity cost of moving from point D to point E (20 additional computers)?
DVDS
e. As we produce more computers, opportunity costs are
v (Click to select)
unchanged
increasing
decreasing
Beth can read 30 pages of astronomy in an hour. She can also read 20 pages of sociology in an hour. She spends 6 hours per day studying.
**Use the blue line (circle symbol) to draw Beth's production possibilities frontier (PPF) for reading astronomy and sociology.
Diagram has Astronomy Pages on the left from 0-200 in increments of 20's
On the bottom of the Diagram it lists Sociology Pages numbered the same fom 0-200 in increments of 20.
Beth's opportunity cost of reading 60 pages of sociology is ___________
pages of astronomy.
Chapter 3 Solutions
Principles of Macroeconomics (MindTap Course List)
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Similar questions
- A production possibilities table for DVDS and computers is shown below. Production Alternatives Type of Production A в D E Computers 20 40 60 80 DVDS 80 70 55 35 Instructions: Enter your answers as a whole number. a. What is the opportunity cost of computers when moving from point A to point B? |DVDS b. What is the opportunity cost of computers when moving from point B to point C? |DVDS c. What is the opportunity cost of computers when moving from point C to point D? DVDS d. What is the opportunity cost of computers when moving from point D to point E? DVDS e. As we produce more computers, opportunity costs are |(Click to select) ♥arrow_forwardDefine Production Possibility Frontier. Draw a production possibilities frontier showing increasing opportunity cost for sausages and. kebabs a. On a graph, identify the area of feasible outcomes and the area of infeasible outcomes. b. On a graph, illustrate the effect of the discovery of an oven, a resource needed to make both sausages and kebabs, on this economy. c. On a second graph, illustrate the effect of a new computerized assembly line in the production of sausages on this economy.arrow_forwardSuppose that there are 10 million workers inCanada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. a. What is the opportunity cost of producing acar in Canada? What is the opportunity costof producing a bushel of wheat in Canada?Explain the relationship between the opportunity costs of the two goods. b. Draw Canada’s production possibilities frontier. If Canada chooses to consume 10 millioncars, how much wheat can it consume without trade? Label this point on the productionpossibilities frontier. c. Now suppose that the United States offers tobuy 10 million cars from Canada in exchangefor 20 bushels of wheat per car. If Canadacontinues to consume 10 million cars, howmuch wheat does this deal allow Canada toconsume? Label this point on your diagram.Should Canada accept the deal?arrow_forward
- You have exams in economics and chemistry coming up and five hours available for studying. The following table shows the trade-offs you face in allocating the time you will spend in studying each subject. Hours Spent Studying Midterm Score Choice Economics Chemistry Economics Chemistry A 5 0 95 70 B 4 1 93 78 C 3 2 90 84 D 2 3 86 88 E 1 4 81 90 F 0 5 75 91 a. Use the data in the table to draw a production possibilities frontier graph. Label the vertical axis “Score on economics exam” and label the horizontal axis “Score on chemistry exam”. Make sure to label the values where your production possibilities frontier intersects the vertical and horizontal axes. b. Label the points representing choice C and choice D. If you are at choice C, what is your opportunity cost of increasing your chemistry score? c. Under what circumstances would A…arrow_forwardDraw and explain a productino possibilities frontier for an economy that produces milk and cookies. What happens to this frontier if disease kills half of the economy's cows?arrow_forwardDraw the production possibilities frontier on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis Annual Production of Y Annual Production of X 0 20 45 60 70 75 1300 1200 900 6:00 350 0 b. If the economy is producing 45 units of X and 900 units of Y, what is the opportunity cost of producing an extra 15 units of X. Show on graph. C. If the economy is producing 20 units of X and 800 units of Y, what is the opportunity cost of producing an extra 10 units of X. Show on graph.arrow_forward
- 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?arrow_forwardexplain a production possibilities frontier for an economy that produces cheese and milk. What happens to this frontier if a disease kills half of the economy’s cows?arrow_forwardThe table below shows the production possibilities in Lykesville. Using the information in the table, answer the questions below. A B C D E OA OB SOC OD Lykesville Lykesville Cell phones Washing machines 0 20 50 70 80 600 450 300 150 0 What is the opportunity cost of increasing the production of cell phones from 20 to 50? washing machines At which point is the opportunity cost of 1 additional cell phone the highest?arrow_forward
- ""please don't use chatgpt simple words give answer "" "Economic subject""arrow_forwardDraw 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 cows?arrow_forwardTable 3-8 Production Possibilities Blankets Coats 8 600 12 ? 16 200 Refer to Table 3-8. If the production possibilities frontier is a straight line, then which of the following could represent the number of coats produced when 12 blankets are produced? a. 200 b. 500 c. 300 d. 400arrow_forward
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