If the production possibilities frontier between two goods were a straight line, then the opportunity cost of one good in terms of another would be A) constant. B) increasing. C) decreasing. D) zero. E) either constant, increasing, or decreasing but more information is needed to determine which.

If the production possibilities frontier between two goods were a straight line, then the opportunity cost of one good in terms of another would be A) constant. B) increasing. C) decreasing. D) zero. E) either constant, increasing, or decreasing but more information is needed to determine which.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section30.2: Internalizing Externalities

Problem 2ST

See similar textbooks

Related questions

Q: Which of the following statements is true? Select one or more options: -If two different…

A: The following statements are true - If two different individuals have exactly the same budget…

Q: Which best exemplifies the concept of Opportunity cost? additional units of consumption produce less…

A: Opportunity cost is the value of the next best alternative which is forgone.

Q: Economics is a social science which deals with human behavior as a relationship between ________. a.…

A: It is said that Economics is a social science which deals with human behavior as a relationship.

Q: Define the opportunity cost . What is the significance of opportunity cost in economics.

A: Opportunity Cost Opportunity cost is the cost of next best foregone.When a person, an investor, or a…

Q: Time is an important resource in our everyday life. Each day has 24 hours within which all…

A: The problem of Economics is centered around the basic idea of allocating resources efficiently that…

Q: Assume you are spending your full budget and purchasing such amounts of X and Y that the marginal…

A: Marginal utility is additional utility derived from one extra unit of good consumed.

Q: Tom's lawn service specializes in mowing lawns and trimming bushes. Tom has 4 hours to devote to…

A: The combinations of different levels of two or more goods that can be produced using the given level…

Q: Consider a small closed economy with two consumption goods: good 1 (meat) and good 2 (berries).…

A: Monetary harmony is a state wherein financial factors, for example, organic market are adjusted, and…

Q: If A were to start with 10 apples and 10 bananas & B were to start with 10 apples and twenty…

A: One rule is Pareto better than another in the event that it leaves no less than one individual good…

Q: An economy's production possibilities frontier is also its consumption possibilities frontier Select…

A: Production Possibility Frontier It shows different of two goods or services that an economy can…

Q: The opportunity cost of moving from point H to point G in the above picture is (specify amount and…

A: Opportunity cost refers to the benefit that is gone for other best alternative. Opportunity cost is…

Q: A production possibilities frontier is shown below (Z, "Home Goods," on the vertical axis; H,…

A: All the points that lie on a PPF have productive efficiency. A PPF shows combinations of…

Q: Match each diagram in Figure 1 with its description here. Assume that the economy is producing or…

A: The production possibility frontier (PPF) refers to the curve which shows all the possible…

Q: Question 14 Refer to Table 1-1 in Question 11. The opportunity cost of 1 unit of bread for Whetonia…

A: 14) The table above shows the labor hours required to produce one unit of bread and cheese and the…

Q: Irfan has the budget constraint described in the graph below. If Irfan purchases 1 hour of tutoring…

A: When increasing the tutoring hours from 1 to 2, Restaurant meals per mometh decreases from 6 to 4.…

Q: What does the slope of a curve between two points have to do with the opportunity cost of producing…

A: Opportunity cost of producing additional units of one good is the quantity given up of the other…

Q: Marie has a weekly budget of $24. Pie's are $12 each. Magazines are $4 each. What is Marie's…

A: The opportunity cost is the monetary value of the next best alternative that is foregone while…

Q: What is an opportunity cost? How does the idea relate to the defifinition of economics? Which of the…

A: In economics, the problem of scarcity which is universal in nature is studied and addressed. As…

Q: oints on a utility possibility curve represent a given distribution of well-being between two…

A: Utility refers to the satisfaction a consumer receives as a result of using a service or purchasing…

Q: If an allocation is Pareto optimal and if indifference curves between the two goods have no kinks,…

A: A Pareto-optimal economy is one in which no economic adjustment benefits one individual without…

Q: The Production Possibility Frontier of a country is A has a slope equal to the unit factor cost…

A: An economy does not have resources in infinite amounts. This is called scarcity of resources. This…

Q: Attempts Keep the Highest / 1 6. Scarcity, opportunity cost, and marginal analysis Lucia is training…

A: Lucia has the fixed number of hours which she cna spend on training of any activity. And if she…

Q: A clothier makes coats and slacks. The two resources required are wool cloth and labor. The clothier…

Q: Opportunity costs exists only for durable goods? Explain if it’s correct or not.

A: Economics is the branch of social science that deals with the production, distribution, and…

Q: A production possibilities table for two products, grain and airplanes, is found below. Usual…

A: Opportunity cost of generating a product is explained by the sacrifice made by the producer when he…

Q: Suppose a trip to the theater costs $10, but gives 40 units of utility to a consumer. A trip to the…

A: Utility refers to the amount of satisfaction received by a consumer from the consumption of a good…

Q: Consider a small closed economy with two consumption goods: good 1 (meat) and good 2 (berries).…

A: A closed economy does not trade with other countries. As a result, the closed economy is entirely…

Q: The definition of Product Possibility Frontier is The graph which indicates the various production…

A: The definition of product possibility frontier is the graph which indicates the various production…

Q: The Production Possibilities Curve is essentially what? Multiple Choice It shows total revenues from…

A: Production possibilities curve shows different combinations of two goods that an economy can produce…

Q: Which of the following statements is TRUE? A budget constraint illustrates increasing opportunity…

A: Answer - Option B Option D is False as PPF does not always have constant slope. A straight line PPF…

Q: What is the equation for the student's budget constraint? In your equation, use Q1 as the variable…

A: The opportunity cost = What is sacrificed / What is gained

Q: Suppose your first-preferred choice for lunch is a sandwich, your second-preferred choice for lunch…

A: The central problem of economics is the scarcity of resources. Scarcity arises because of the…

Q: Choose the correct answer. Coffee and doughnuts are complements in consumption. Suppose bad…

A: partial equilibrium Partial equilibrium suggests that the analysis is limited to the impacts of a…

Q: If it is not possible to increase the output of one good without decreasing the output of the other,…

A: PPC: It represents different combinations of output that can be produced with current resources and…

Q: Which of the following statements is NOT an assumption underlying the production possibilities…

A: A production possibility curve/frontier (PPF) shows the maximum possible output combinations of two…

Q: If you must make a choice about consuming two apples, three oranges, or one candy bar, the…

A: Answer : two appled or three oranges which ever you most prefer.

Q: Which of the following decisions would entail the greater opportunity cost: allocating a square…

A: Opportunity cost represents the potential benefits that one has to give up while choosing an…

Q: This curve demonstrates the Law of Increasing Opportunity Cost because (select all that apply) The…

A: PPC curve shows the combinations of two goods which produces the goods at given resources.

Q: Suppose goods X and Y are produced along a production possibilities frontier X² + 4Y² = 500 and they…

A: Since the good X and good Y are perfect substitute. The marginal rate of substitution for perfect…

Q: Auto Bull Eye offers a 10-minute oil change and 30-minute brake check. There are two technicians who…

A: The production possibility curve shows all the possible combinations of output that can be produced…

Q: Joe's income is $100 a day and he currently buys two goods: fresh fruit (F) and cheese (C). The…

A: Opportunity cost refers to decrease in quantity of one good needed to increase the quantity of other…

Q: if an economy experiences constant opportunity costs with respect to two goods, then the production…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: As an economics student your budget for meals at the university is Rs 12,000 and you have two…

A: An indifference curve shows a combination of two goods that provides equal satisfaction to the…

Q: Auto Bull&#39;s-Eye offers a 10-minute oil change and 30-minute brake check. There are two…

A: The production possibility curve shows the different combinations of two goods that an economy or…

Q: Which of the following statements about a budget line is correct? The opportunity cost of the good…

A: Budget line is the curve represents the two possible combinations of goods which can be bought with…

Q: What is the correct formula for calculating opportunity cost of good Y if we are producing goods X…

A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all…

Concept explainers

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.

Question

If the production possibilities frontier between two goods were a straight line, then
the opportunity cost of one good in terms of another would be
A) constant.
B) increasing.
C) decreasing.
D) zero.
E)
either constant, increasing, or decreasing but more information is needed to
determine which.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Answer the question based on the following graph. Which of the following statements is entirely correct? Tom's monthly budget constraint 40 •D E nts 20 Number of hamburgers per month O Point E is unattainable and Point D is inefficient. O Both point D and E are unattainable. O Point E is inefficient and Point D is unattainable. O Point A is inefficient and Point E is unattainable. « Previous Next Number of hot dogs per month
The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. Quantity of Quarks 800 700 600 500 400 300 200 100 A 2 4 6 8 10 12 14 16 18 20 Quantity of Quirks Select one: Refer to the graph above to answer this question. If new technology increased the output of quirks by 50%, how many quirks could be produced if 700 quarks were produced? B A. 9 quirks. B. 18 quirks. C. 10 quirks. D. 20 quirks. E. No quirks.
1. An individual's budget Suppose Bob has a yearly budget of $120 to spend on oat milk and peanut butter. Oat milk is priced at $2 per quart, and peanut butter is priced at $6 per jar. If Bob spends his entire $120 on oat milk, he can buy jars of peanut butter. Use the blue line (circle symbol) to plot Bob's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of oat milk and peanut butter that are affordable for Bob. Finally, place the black point (plus symbol) on the point on Bob's budget constraint that corresponds to a scenario in which Bob spends $60 on each good. Note: Dashed drop lines will automatically extend to both axes. PEANUT BUTTER (Jars) 120 110 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 + 40 50 60 70 OAT MILK (Quarts) quarts of oat milk. If he spends his entire $120 on peanut butter, he can buy + + 80 90 + H 100 110 120 BC, ($120) ☐ Affordable Region $60 on Each BC₂ ($240) ?
Figure 1 The production possibility frontier ABCDE is a production possibility frontier. It shows the different combinations of goods which can be produced if all resources are fully and efficiently utilised. The economy can produce at any point on the line. It cannot produce at G because the PPF shows the maximum that can be produced. It can produce within the PPF,05 such as at F, but less will be produced than the maximum possible. Non-manufactured goods 50 40 30 20 10 0 A 10 B Ti C 20 30 Manufactured goods G D E 40
Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, “What is the right amount of variety? Can there be too many varieties of shoes, for example?” the bold question i dont understadnwhat they are trying to ask me to do
Option Baseball Bats Tennis Racquets A 20 2 19 C 4 18 6. 16 8 10 F 10 The table above shows the production possibilities frontier for a company producing only 2 goods: baseball bats and tennis racquets. Suppose the company is currently producing 4 bats and 10 racquets all of which have been ordered by customers. If customer John puts in an order for 4 bats, so that the total number of bats to produce would then be 8, what is be the opportunity cost of filling John's order? 8 racquets 10 racquets nothing 18 racquets
Question 3 Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units. (a) State whether 9 units of Good B and 12 units of Good A are attainable, unattainable, efficient or inefficient. [State all that applies.] Select one or more: attainable unattainable efficient inefficient
If production of two goods is currently at levels such that we are inside the production possibilities curve O production is inefficient. O it is not possible to produce more of both goods. Owe are in the "unattainable" region. O in order to produce more of one good, we must produce less of the other.
Use the following production possibilities below to answer the following questions. Production Possibilities Frontier 200 Soybeans Shipping (in tons) Containers 175 200 150 100 180 200 150 125 300 100 100 400 40 450 75 50 25 100 200 300 400 Soybeans (in tons) Shipping Containers
Which best exemplifes the concept of Opportunity cost? O additional units of consumption produce less additional utility than the previous unit utility cannot be compared across different people O the more money a consumer spends, the less is available to purchase other goods utility always increases through additional consumption
While producing on the production possibilities frontier. if additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be Select one: O a. boswed outward. O b.a straight line. O c bowed inward. O d. positively sloped.
The graph below is Mendork's production possibility curve for the only two goods that it produces: quirks and quarks. Quantity of Quarks 800 700 600 500 400 300 200 100 2 4 6 8 10 12 14 16 18 20 Quantity of Quirks Note: If the image does not appear, right-click on the placeholder and choose Show picture or View image. If Mendork's current production is at point A, what is the (approximate) cost of producing one more quirk? a) 50 quarks B b) 100 quarks c) 200 quarks d) One more quark e) 25 quarks