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If the production possibilities frontier curve is linear and downward-sloping instead of bowed out, that indicates

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Define and describe the production possibilities frontier model.
What can cause the Production Possibility Frontier (PPF) to contract, that is to say, move the PPF further to the left? A) Minimum Wage B) Price Ceiling C) An increase in raw material costs needed in production D) Price Floor
Using 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.
what happens when we move between two efficient points in a production possibility curve?
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Ron can either workout or make sushi rolls. It takes him 40 minutes to finish 1 workout and 20 minutes to make 1 sushi roll. If he has 120 minutes to do these two activities, what is the equation of the production possibility frontier (PPF) that describes the tradeoff between these two activities? (Assume workouts are on the x axis and sushi rolls are on the y axis) A y=6-2x B y=3-0.5x C y=3-2x D y=6-0.5x
An outward shift of a nation's production possibilities frontier can occur due to
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Let Utopia be a very small country that produces Cheese and Bread only. Its production possibilities frontier is provided in the table above. Suppose that Utopia is currently producing at point B. What is the opportunity cost of 2 additional kg of cheese at point B ? At point C? What do these results show?
Assumptions are initial conditions made before production possibilities frontier(PPF) is built. Explain why assumptions are important in economics.