Some Canvas discussion work Consider the previous Amland's PPF, with equation S = 30 -0.25 C and graph shown on the right. Now, say Amland experienced proportional economic growth. So, it has a new PPF and a new PPF equation, because it is now able to produce (with its given resources/technology) 1.2 times the quantity of each good it produced before. 1. Write the Amland's new PPF equation. 2. Determine the unit cost of each good in Amland. 3. Draw the new PPF graph in the diagram. Steel 30 Old PPF equation: S=30-(1/4) C Old unit cost of C: 1/4 units of S New PPF equation: New unit cost of C: 120 -Corn
Q: What are the characteristics of a perfectly competitive industry?
A: Perfectly competitive market refers to market where large number of buyers and sellers participate…
Q: Legal immigration into the U.S. can be done through the following ways, except: A. Annual…
A: Legal immigration refers to the process of moving permanently to a new country with the approval and…
Q: Two electric motors (A and B) are being considered to drive a centrifugal pump. Each motor is…
A: Capacity = 40 Motor use - 800 hours per year electricity cost = 0.08 per kilowatt hour 1hp = 0.746kw…
Q: Which of the following is true about government spending (G) and tax (T) multiplier? The G…
A: Government spending multiplier (also known as G multiplier) The government spending multiplier…
Q: Consider the following Cobb-Douglas production function for the bus transportation system in a…
A: The Cobb – Douglas production function is a specific type of production function, widely used to…
Q: b) Suppose the price of x, increases to $2. What is the compensating variation? In other words, how…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: Due to inflation, a refrigerator that formerly sold for $450 now sells for 7% more. Which of the…
A: Inflation is the economic phenomenon in which the general level of prices of goods and services in…
Q: Nina is a farmer that grows and sells tomatoes. Her total explicit and implicit costs are 950000 per…
A: The sum of all costs, both fixed and variable, is known as the Total cost. The cost per unit…
Q: Caden wants to buy a jacket for $48.10. If he puts $1.85 in his piggy bank each day, how many days…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: In terms of monetary policy, the most important function of district Federal Reserve banks is to:…
A: The monetary policy is set by Federal Reserve for promoting the maximum employment and stabilization…
Q: Price and cost (dollars per ton of steel) 250 200 150 100 50 2 MSC S-MC D- MSB 4 10 Quantity (tons…
A: Externality refers to the economic situation in which the economic activity of the producer or…
Q: What is the total cost of the tariff? total cost: millions of dollars
A: Market demand and market supply: The market demand function reflects the total value of all…
Q: Assume that China places a strict quota on goods imported from the U.S. and that the U.S. does not…
A: A quota is a trade limitation put in place by the government that restricts how many or how much…
Q: Consider a company using the economic production quantity model. a. Derive the percent change of…
A: The total cost for the economic production quantity model is can be derived by finding out the total…
Q: In the United States, where land is cheap, the ratio of land to labor used in cattle raising is…
A: The amount of capital invested to raise revenue and profit is referred to as capital intensive,…
Q: A Uses current dollars Best for comparing different countries in the same year What is an…
A: GDP refers monetary measure of the market value or the market value of all the final products and…
Q: There are many kinds of pressure on economy. Explain some of them. Answer in a economic…
A: The mechanism by which a society or a nation creates, distributes, and consumes products and…
Q: The table shows the supply schedules of B's and G's (the only candy sellers in the market). Quantity…
A:
Q: Figure 6-17 This figure shows the market demand and market supply curves for good Y 40 36 + 5 5 8 2…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: Question 4 Fully explain the two components of the utility maximizing "rule".
A: While making decisions, a person's primary objective is to maximize their total utility, taking into…
Q: Consider a 3.5 percent TIPS with an issue CPI reference of 185.6. The bond is purchased at the…
A: The Consumer Price Index (CPI) refers to a price index that determines the overall change in…
Q: What are the causes of sweatshop ? Enumerate and give meaning.
A: Sweatshops are places of employment where employees are subjected to subpar working conditions,…
Q: Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B…
A: Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and…
Q: Your firm is based in Mexico and you have USD denominated debt. The firm has an interest payment of…
A: USD/MXN 18.0912 - 18.1291 , it means that: - we can sell 1 USD for 18.0912 MXN - we can purchase 1…
Q: Which of the following statements about open market operations is true? Central bank…
A: Open market operations refer to the buying and selling of government securities by a central bank in…
Q: 17. Which of the following statements applies to the Social Security program? A. Benefits are paid…
A: An initiative of the federal government, Social Security offers economic support to disabled…
Q: Figure 8-2 The vertical distance between points A and B represents a tax in the market. 12 11 10 9 8…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: Someone has a comparative advantage in producing a good if they can produce that good in greater…
A: A comparative advantage is the capacity to produce goods and services at a lower cost, without…
Q: Why is a competitive market generally better for society than a monopolistic market?
A: A market economy is a way of running an economy in which the private sector, not the government,…
Q: In this game, (80, 50) 52% a) (R, N) b) (R, R) O c) (S, N) is a Nash equilibrium First Player…
A: Sub game perfect Nash Equilibrium: A Nash Equilibrium is said to be subgame perfect if and only if…
Q: Questions 4 (Choice & Demand). Suppose a consumer's utility function is given by: U(x₁, x₂) = x₁4x…
A: The consumer maximizes the utility subject to the budget constraint. Demand function represents…
Q: Marcus buys a tablet for $5,000. What determines the size of consumer surplus Marcus receives?…
A: Consumer surplus is a metric for the financial well-being that consumers experience as a result of…
Q: The following table shows a profit-maximizing producer's marginal costs. The firm is operating in a…
A: The economic theory of the firm analyses the behavior of organizations as profit-maximizing entities…
Q: can By increasing the interest rate it pays on bank reserves, the Federal Reserve the level of…
A: The Federal Reserve or Fed is the central bank of the country U. The main goal is to promote a…
Q: You Answered Correct Answer Suppose you are given the following equation: Qx-50-10 (Px) + 4 (Py) +…
A: Elasticity of demand measures the responsiveness of quantity demanded when price of a good changes.…
Q: Name: FRONTLINE Sick Around the World COMPARING HEALTH CARE/Student Handout United Kingdom Japan…
A: Healthcare refers to the diagnosis, treatment, and prevention of illness, disease, injury, and other…
Q: 24. The Patient Protection and Affordable Care Act (PPACA) attempts to provide health-insurance…
A: The Patient Protection and Affordable Care Act (PPACA) , in United States include provisions that…
Q: A private university charges the same tuition for both in-state and out-of-state students, and it…
A: A private school notices that in-state and out-of-state students seem to react to tuition hikes…
Q: Which of the following statements is TRUE? Select one: a. If a profit-maximizing firm in a perfectly…
A: In a perfectly competitive market, all organizations are price takers, meaning they can't impact the…
Q: Explain in detail factor price equalisation. Discuss reasons why the factor price equalisation…
A: This answer will discuss the concept of factor price equalisation and the reasons why it may not…
Q: How increase the price of good X by An econometrics expert from your firm used a linear demand…
A: The ordinary least square, or OLS estimation, or regression, establishes a linear relationship…
Q: We can map the benefits from changes in products/service offerings, process changes, or position…
A: An organised manner to examine and comprehend how a company develops and distributes value to its…
Q: Bartholomew and Agatha are each endowed with 15 units of food and 15 units of clothing. For…
A: The Edgeworth box is a rectangular diagram with two perpendicular axes, representing the goods or…
Q: Externalization is tacit to explicit knowledge, through which the knowledge is made explicit and…
A: Tacit knowledge is the knowledge that the person has gained from their life experience that can be…
Q: PRICE 12 11 10 9 8 7 5 4 3 2 1 Domestic Demand G A C B E F D We 1 2 3 4 5 6 7 8 QUANTITY Refer to…
A: Importable items become more expensive when tariffs are implemented, which drives domestic customers…
Q: Consider the following duel game between a pitcher and a batter. fastball knuckleball (0.400,-0.400)…
A: Since sum of the payoff of both players for each strategy is zero. It's a zero sum game. Hence,…
Q: In some cases, governments will intervene in the currency markets to incresae or decrease the value…
A: The foreign exchange market is a market where currencies are traded globally. The primary purpose of…
Q: d) How would your answer to b) would change if velocity growth was not constant, but instead was a…
A: The QTM is the amount of money in the economy it means that if the money supply rises in the…
Q: Solve for q if MR = MC when MR = 775 - 10q and MC = q^2-40q+600 775-10q=q^2-40q+600
A: Marginal Revenue = Marginal cost MR is the income gained by selling one additional unit, while MC…
Q: Consider the relationship among exchange-rate changes, aggregate demand, and monetary policy. Assume…
A: Aggregate demand (AD) and aggregate supply (AS) are two fundamental concepts in macroeconomics that…
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 1 images
- QUESTION 10 product Y 28 24 20 16 12 8 4 0 0 Production Possibilities Frontier PPFO 4 8 PPFn 12 16 Point E 20 24 product X 10. 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. 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.Save A production possibilities frontier (PPF) is ou O A. a curve that shows the potential productive capabilities of the frontier (defined as the area outside of cities) of a developing economy. O B. a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology. O C. a curve showing the generally attainable combinations of two products that may be produced with all planned or potential, yet undeveloped technology. O D. a curve that illustrates the demand of two goods for the average consumer.give 1 of the following statements that is NOT true regarding the production function and the production possibilities curve?a. Both the production fuunction and the production possibilities curve maximise the amount of output attainable.b. The production function describes the capacity of a single firm, whereas the production possibilities summarises theoutput capacity of the entire economy.c. A production function tells us the maximum amount of output attainable from the use of all resources.d. The production possibilities curve expresses the ability to produce various combinations of goods given the use of allresources
- The problem of choosing the appropriate production techniques refers to which type of economic problem? O a. What to produce? O b. How to adchieve economic growth? Oc For whom to produce? Od. How to produce? There is a graph showing all the combinations of goods and services that can be produced using the available resources in the society. The graph is called as, O a. None of these O b. Production possibility curve Oc Demand curve O d. Supply curve An individual is called a 'seller if he has the O a willingness to sell tof O b. ability to pay seshon Oc desire to buy Od. ability to buySMARTPHONES (Millions) 40 20 0 PPF 0 40 60 CORN (Millions of bushels) Which of the following is true regarding this economic model? O In order to construct such a model, an economist would need real life data regarding countries that produce only two goods. O The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. O This PPF is not an economic model. O The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts. 20 80 100Draw the production possibilities frontier on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis Annual Production of Y Annual Production of X 0 20 45 60 70 75 1300 1200 900 6:00 350 0 b. If the economy is producing 45 units of X and 900 units of Y, what is the opportunity cost of producing an extra 15 units of X. Show on graph. C. If the economy is producing 20 units of X and 800 units of Y, what is the opportunity cost of producing an extra 10 units of X. Show on graph.
- K The graph shows a production possibilities curve for 2023 and two potential production possibilities curves for 2024, denoted 2024, and 2024 a. The labeled point that corresponds to maximum feasible 2023 production and is more likely to be associated with the curve denoted 2024, is b. The labeled point that corresponds to maximum feasible 2023 production and is more likely to be associated with the curve denoted 2024, is - CD- Capital Goods 10- Production Possibilities Curves 0 X ON 2023 2024 2024 Consumption Quo Time Remaining: 01:09 43 featConsider a simple economy of Korea - producing two goods, Motor bike and milk. The details ofthe economy and its production is as follows: Motor Bike (1000 / year) Milk (1000 gallons per year) 0 601 502 303 0 d) According to the (BGH) technology, farmers can now get double the amount of milk fromcows easily. In terms of PPF, this means Korean economy can now produce twice milk ateach level of bike output. With the current production of 2000 motor bikes, Mr. B claimsthat this new technology can allow this economy to produce more milk and more bikes. Doyou agree with this statement or not?e) Explain carefully, with the help of diagram and justify your answer.The quantities shown are taken from a production possibilities frontier for an economy with diminishing returns. The blank in the table could be which value? Bags Courses 40 300 60 ? 80 100
- Which point(s) are efficient? Briefly explain why. B Points A, B, C, and D because they are attainable. Points B, C, and D because this is where maximum output is produced with available resources. Point A because it is inside the production possibilities frontier. Point E because it is where the most capital and consumption goods combined are produced. A D Point B because it is where the most resources are used to produce capital goods. Which point(s) are inefficient? Briefly explain why. PPF O A. Points B, C, and D because they are on the production possibilities frontier. O B. Points B, C, D, and E because they are unattainable. Consumption goods O C. Points A, B, C, and D because they are attainable. O D. Point E because it is unattainable. OE. Point A because production there is not using all available resources. At which point is the country's future growth rate likely to be the highest? Briefly explain why. O A. Point E because it is where the production possibilities frontier…lexi and Tony own a food truck that serves only two items, street tacos and Cuban sandwiches. As shown in the table, Alexi can make 80 street tacos per hour but only 20 Cuban sandwiches. Tony is a bit faster and can make 100 street tacos or 30 Cuban sandwiches in an hour. Alexi and Tony can sell all the street tacos and Cuban sandwiches that they are able to produce.Output Per HourStreet Tacos Cuban SandwichesAlexi 80 20Tony 100 30a. For Alexi and for Tony, what is the opportunity cost of a street taco? Who has a comparative advantage in the pro-duction of street tacos? Explain your answer.b. Who has a comparative advantage in the production of Cuban sandwiches? Explain your answer.c. Assume that Alexi works 20 hours per week in the business. Assuming Alexi is in business on his own, graph the possible combinations of street tacos and Cuban sandwiches that he could produce in a week. Do the same for Tony.d. If Alexi devoted half of his time (10 out of 20 hours) to making street tacos…Suppose Americans decide to save more of theirincomes. If banks lend this extra saving to businessesthat use the funds to build new factories, how mightthis lead to faster growth in productivity? Who doyou suppose benefits from the higher productivity? Issociety getting a free lunch?