ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Explain how each of the following situations affect a nation’s
(1)A technological innovation allows the nation to efficiently convert solar energy into electricity
What happens to the PPF? Choose one
- PPF shifts outwards
- Produce inside PPF
- Produce outside PPF
- Increased production given resources
- Increase in resources
- PPF shifts inwards
- Unused Resources
Explanation? Choose one from the options above
2. Covid -19 increases the number of
What happens to the PPF? Choose one
- PPF shifts outwards
- Produce inside PPF
- Produce outside PPF
- Increased production given resources
- Increase in resources
- PPF shifts inwards
- Unused Resources
Explanation? Choose one from the options above
3. A global pandemic results in 6 million results in 6 million confirmed cases and the death of over 40,000 individuals. What happens to the PPF curve?
What happens to the PPF? Choose one
- PPF shifts outwards
- Produce inside PPF
- Produce outside PPF
- Increased production given resources
- Increase in resources
- PPF shifts inwards
- Unused Resources
Explanation? Choose one from the options above
4. A switch to online delivery increases education increases access to education in the nation’s colleges and universities but might have a detrimental impact on the quality of education. What happens to the PPF curve?
What happens to the PPF? Choose one
- PPF shifts outwards
- Produce inside PPF
- Produce outside PPF
- Increased production given resources
- Increase in resources
- PPF shifts inwards
- Unused Resources
Explanation? Choose one from the options above
5. The nation passes a law requiring all employers to give employees 16 weeks of paid vacation each year. Prior to this law employers were not legally required to give employees any paid vacation time. What happens to the PPF Curve?
What happens to the PPF? Choose one
- PPF shifts outwards
- Produce inside PPF
- Produce outside PPF
- Increased production given resources
- Increase in resources
- PPF shifts inwards
- Unused Resources
Explanation? Choose one from the options above
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- 1a. What is a Production Possibilities Frontier (PPF)? Consider an economy with only two goods: guns and butter. Show the tradeoff between the production of guns and the production of butter by drawing a (bowed outward) PPF (use gun production on the horizontal axis and butter production on the vertical axis). b. In what ways does the PPF reflect: i. scarcity and choice; and ii. increasing opportunity cost? c. How would the PPF be affected by a technological improvement in the production of guns? Solve all this question......you will not solve all questions then I will give you down?? upvote..arrow_forwardThe accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before?arrow_forwardSuppose a flood changes the production capacity in a country. How would you represent this situation with a production possibilities frontier?Choose one: A. The economy moves from a point on the PPF to a point beyond the PPF. B. The economy moves from a point below the PPF to a point on the PPF. C. The entire PPF shifts in. D. The entire PPF shifts out.arrow_forward
- 13. Assuming the PPF is shifting from PPFo to PPFn, which of the following explains the cause or causes of the economic growth depicted in this Figure? a) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of X. b) This Figure represents growth due to an increase in resources and/or improvement in technology that are specific to the production of Y. c) This Figure represents growth due to an increase in resources and/or improvement in technology that are not specific to either product. d) This Figure represents growth due to an increase in specialization.arrow_forwardCAPITAL GOODS Use the diagram below to answer the questions that follow. M. CONSUMER GOODS (a) What change could cause the PPF to shift from the original curve (HJ) to the new curve (MN)? (b) Under what conditions might an economy be operating at point Z? (c) Why might a government implement a policy to mnove the economy from Point V to Point W? Question 3 F7 PrtSc Insert 88 F10 F11 6 F12 & 9- 7.arrow_forward9. Draw a PPF curve for the macroeconomy of Germany (a large producer of capital goods). Assume that Germany has an unemployment rate of 7%. (Hint: draw the dashed line assuming a full employment level of 4.5% unemployment rate and consider only consumption and capital goods in the economy.)arrow_forward
- The blue (inner) curve on the following graph shows the current production possibilities frontier (PPF) for the economy of Wilshire, and the green (outer) curve shows the PPF for Wilshire next year if the economy were to operate at point B today. That is, investment choices today impact the growth of the economy, and thus the PPF for next year. Suppose that this year, the economy is operating at point B, but then an earthquake destroys more capital than is being produced during the year. On the following graph, the PPF that best describes the Wilshire economy next year is ________ (options: PPF1, PPF2, PPF3). PPF1 is orange line PPF2 is purple line PPF3 is tan line.arrow_forwardFor both goods, assume output per hour remains constant as the number of workers allocated to that good changes. Wakanda produces both vibranium and adamantium. With vibranium on the vertical axis and adamantium on the horizontal what happens to the PPF if workers become more productive in producing vibranium but adamantium productivity does not change? Group of answer choices A.The PPF becomes steeper. B.The PPF becomes flatter. C.The PPF shifts out, with the new PPF parallel to the initial PPF. D.The PPF shifts out, but we do not know how the slope of the new PPF compares to the slope of the original PPF. E.The effect on the PPF need not be any of the above.arrow_forwardUsing a production possibilities frontier (PPF) diagram, determine how does the PPF change in response to the events describe below. a) A relaxation of policies allowing more foreign direct investment into the country. b) Increasing the minimum wage level. c) A decrease in expenditure on research and development. d) An increase in the retirement age. e) Government policies supporting the provision of services, without affecting manufacturing.arrow_forward
- Adjust the production possibilities frontier (PPF) to show the economy's new production possibilities after the deterioration of infrastructure. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. QUANTITY OF CARS (Millions) 24 16 0 0 O 5 OO PPF 10 QUANTITY OF COMPUTERS (Millions) 15 Suppose society faces a broad tradeoff between allocating resources to the production of investment goods (computers) and consumption goods (cars) before the deterioration of infrastructure described above. PPF Which of the following events would be most likely to lead to the deterioration of infrastructure you just illustrated? Increasing production of investment goods and decreasing production of consumption goods Decreasing production of investment and consumption goods Increasing…arrow_forwardHi! I am currently stuck on this question: Suppose there is an improvement in medical technology that enables more healthcare to be provided with the same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education? I am confused as to why education increases. I know that the medical technology would increase the PPF because of the improvement, but wouldnt that decrease the opportunity cost of education because there is more technology? Thanks!arrow_forwardWhat does a point inside the production possibilities frontier (PPF) represent? A. An efficient allocation of resources B. An underutilization of resources C. A technologically advanced production point D. An unattainable production level given current resourcesarrow_forward
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