Briefly explain how the economy pictured above could shift production from point E (an inefficient point of production) to point C (an efficient point of production) ? GunsGuns A45,000F45,00030,00030,000H.15,00015,000EDButterButter5,000,00011,000,00015,000,00015,000,00010,000,00014,000,000

The production possibility frontier (PPF) shows the combination of two goods and services which can…

Answered: Guns Guns A 45,000 A F 45,000 30,000…

Guns Guns A 45,000 A F 45,000 30,000 30,000 H C 15,000 15,000 E D Butter Butter 5,000,000 11,000,000 15,000,000 15,000,000 10,000,000 14,000,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 06: Refer to the production possibilities frontier to the right for an economy that produces just two goods: trucks and boats. Label each point as: efficient (resources completely utilized), inefficient (some resources under-employed, or not-possible (not enough resources to produce the quantities of trucks and boats at present) Question 7 options: A) A, B, and C are all inefficient; D is efficient; E is not-possible B) A, B, and C are all efficient; D is inefficient; E is not-possible C) A, B, and C are all efficient; D is not-possible; E is inefficient D) A, B, and C are all not-possible; D is efficient; E is efficient
Question 3 The U.S. economy's Production Possibilities Frontier is made up of two goods: oranges and automobiles. The U.S. economy moves from point A, where it produces 100 oranges and 200 cars, to point B, where it produces 200 oranges and 150 cars. It follows that Point A is an inefficient point. Point B may be an inefficient point There is not enough information to answer the question Point B is an inefficient point Question 5 Which of the following statements are false? 1. If scarcity did not exist, then neither would the Production Possibilities Frontier. II. All Production Possibilities Frontiers are bowed out from the origin. III. All Production Possibilities Frontiers are made up of two goods or services. IV. Opportunity cost can not be illustrated with the Production Possibility Frontier. OL True statement. III. IV II and IV Question 16 Which of the following will have no impact on the demand for Yogurtland frozen yogurt in San Diego? A change in the price of frozen yogurt…
Assume the economy can produce either sports utility vehicles (SUVS) or minivans. The graph below depicts the current production possibilities frontier (PPF). Suppose several new factories are built. Move the end points of the PPF below to show how the PPF changes. Assume that the factory construction affects the economy's ability to produce both minivans and SUVs. Quantity of minivans Quantity of SUVs PPF This is an example of: economic stagnation. economic recession economic contraction. economic growth.
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Assume an economy producing only two goods (shoes and computers) with a fixed amount of productive resources and technology and employing all its productive resources to the maximum.Production in this economy is subjected to the law of diminishing marginal returns and resourcesare assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers andvice versa is 1. On the basis of the foregoing assumptions, answer the following questions: i. Draw the economy’s production possibility frontier on hindsight of the relevantassumption.
4:34 all 100% Econ 102 Ch 7 Questions 目 Yarmouk University Faculty of Economics and Administrative Sciences Department of Economics Econ. 102 Principles of Microeconomics Chapter Instructor: Dr. Sohail Magableh 7 Question 1 Use the information provided in Table 1 below to answer the 2 questions Table 1 Inputs required to produce a Product Using Alternative Technologies Technolugy Units cof Capital Numler of Enypluyees IN 12 A. Which technology is the most labor intensive? B. If the hourly price of capital is $10 and the hourly wage rate is $7, which production technology should be selected? Question 2. Refer to the information provided in Figure 2 below, the law of diminishing returns starts after which worker? AP MP 16 Number of worhen Figure 2 Question 3. Refor to the information provided in the following figure, If this firm's cost of capital is S20 per unit and its cost of labor is $10 per unit, the isocost line represents a total cost of .. Aup sad paymm si anpin
Suppose the economy has 100 units of labor (L) and 100 units of capital (K), and it chooses to allocate three times more labor and capital in the production of good X than in good Y. Suppose also that the production of goods X and Y are represented by the following functions: X = Lx0.25Kx0.25 Y = 2LY0.25KY0.25 Compute for Lx, Ly, Kx and Ky Calculate the MRTSLK of each firm Is this allocation efficient? How so? How many units of X and Y will be produced?
The following graph shows the production possibilities curve for an economy that produces Consumption goods and Capital goods. Use the graph to answer the following questions A) How do you describe what is happening as the economy moves from point P to point L? (discuss it in terms of economic efficiency) B) Which combination - K or M - can lead to faster economic growth in the future? How do you know? Explain your answer. C) If the economy is currently operation at point L, what is the opportunity cost of producing 10 more Capital goods (Moving from combination L to combination M)?
Shen and Valerie are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Corn Rye (Bushels per acre) (Bushels per acre) Shen 20 5 Valerie 50 10 On the following graph, use the blue line (circle symbol) to plot Shen's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Valerie's PPF. 200 180 Shen's PPF 180 140 120 Valerie's PPF 100 80 60 40 20 100 200 300 400 500 600 700 800 900 1000 CORN (Bushels) has an absolute advantage in the production of corn, and has an absolute advantage in the production of rye. Shen's opportunity cost of producing 1 bushel of rye is | bushels of corn, whereas Valerie's opportunity cost of producing 1 bushel of rye is | bushels of corn. Because Shen has a opportunity cost of producing rye than…
Briefly explain the term incremental innovations. Which companies in terms of the size (small, medium, large size) have more economic incentives to produce these?
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Question 6 Listen Efficient resource allocation should be accomplished when any production of a product shows the marginal benefit outweighs marginal cost of its output. 1) True 2) False Question 7 ) Listen If we say that two variables are inversely related, this means that an increase in one variable is associated with a decrease in the other. 1) True 2) False Question 8 ) Listen Consider the problem Amy faces of how to allocate her weekly allowance between books and videos. An increase in Amy's allowance will a) shift her budget line to the right b) rotate her budget line, allowing her to buy more videos but not more books c) rotate her budget line, allowing her to buy more books but not more videos O d) shift her budget line to the left