Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 3, Problem 9P
To determine
(a)
The assumptions for a given production possibilities curve.
To determine
(b)
The calculation of
To determine
(c)
The combinations demonstrate constant or increasing opportunity costs.
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Students have asked these similar questions
What is the per-unit opportunity cost of product Y as production moves from point D to point A?
What is the opportunity cost of obtaining more of one good, as it relates to the production possibilities frontier?
the amount of the other good that must be given up
the market price of the additional amount produced
the amount of resources that must be devoted to its production
the number of dollars that must be spent to produce it
Question Completion Status:
A production possibilities table for two products, grain and airplanes, is found below. Usual assumptions regarding production possibilities are implied. Grain is measured in
metric tons and airplanes are measured in units of 1,000.
Grain
Airplanes
(metric tons)
(1,000s)
Combination
A
B
14
C
26
5
36
4
E
44
F
50
54
1
56
What is the opportunity cost of producing the first unit of airplanes? What is The marginal opportunity cost of producing the fourth unit of airplanes
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Similar questions
- Question Evidence 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.arrow_forwardWhich of the following best describes what occurs along a bowed-out production possibilities curve? The opportunity cost of production of a good is zero. Resources can be transferred from one productive activity to another without requiring a sacrifice. The opportunity cost of production of a good falls as its output increases. The opportunity cost of production of a good rises as its output increases.arrow_forwardQuestion 2 How would each of the following situations affect a nation's production possibilities curve? The amount of time that unemployed workers can collect unemployment insurance is increased from 26 weeks to 96 weeks during a recession, resulting in workers remaining unemployed for a longer period of time. This a) does not shifts b) shifts the PPC.arrow_forward
- Given the above production possibilities frontier, what is the opportunity cost of moving from point a to point b? C) 3 pairs of socks A) zero D) 2 sweaters B) 3/2 pairs of socks per sweaterarrow_forwardGiven a production possibilities curve for investment goods and consumption goods, which of the following statements is true? Select one: a. A production point outside the current curve may be attained if the opportunity cost of producing an extra unit of the good measured on the horizontal axis remains constant. b. Acquiring a new technology would push the PPF inwards towards the origin. c. A production point outside the current curve can be efficiently produced with the current level of resources and technology, if the marginal cost of producing one more unit of consumption goods equals the marginal benefit. d. A production point below the PPF suggests that more of both goods can be produced with current resources and technology. e. Shifting resources to make more consumption goods is likely to enable attainment of a production point outside the current curve.arrow_forward1)What does the law of increasing opportunity cost?2) Does the law of increasing opportunity cost apply for the Production Possibilities Frontier in the case of Rabbits and Berries?3) If the opportunity cost of Rabbits with respect to Berries (and/or vice versa) was constant, what would the PPF look like?arrow_forward
- Explain briefly but clearly the concepts of scarcity and opportunity cost. Provide an example of opportunity cost from either your personal or professional experiences. Remember to include explicit costs (able to be measured) and also implicit costs. Then provide an example of an opportunity cost a whole country experiences when society or the government has made a choice.arrow_forwardConsider Figure 2-2 in Chapter 2. Assume the numbers on the y-axis 820 and 610 were changed to respectively 800 and 700. The opportunity cost of going from 240 to 480 units of food would now be _ and the law of increasing (opportunity) cost__ still hold. a) 100 // would b) 800 // would c) 700 // would not d) 100 // would notarrow_forwardWhat can you say about all three of these Production Possibilities Frontiers? a) All exhibit constant opportunity costs b) All represent production where resources are not specialized c) Each represents the trade-off between goods X and Y d) All the above e) None of the abovearrow_forward
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