2. Below is a production possibilities frontier (PPF) for Happyland, acountry that produces onlytwo goods- wine and cheese.winecheesea) 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 thecountry 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 shiftout their PPF in future periods. (By specific policies, I mean something they can actually doto change productivity for either or both of these goods. "Increase resources," for example, isnot a specific policy. What resources and what type of policy could increase the resources usedfor either of these products?)

The production capacity of a nation can be depicted in the production possibility frontier. Through…

Is a production possibilities frontier (PPF) for Happyland, a country 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 cost of cheese production in Happyland as the Country increases its cheese production? (increase, decrease, unchanged or indeterminate?)

Is a production possibilities frontier (PPF) for Happyland, a country 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 cost of cheese production in Happyland as the Country increases its cheese production? (increase, decrease, unchanged or indeterminate?)

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 3PA

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people are rational QUESTION 7 Ben says that "an increase in the tax on beer will raise its price." Holly arques that "taxes should be increased on beer because college students drink to0 much." We can conclude that: O A. Both statements are O C. Ben's statement is normative, but Holly's is positive D. Holly's statement is normative, but Ben's is positive O B. Both statements are positive normative
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