The graph illustrates the Production Possibility Frontier (PPF) for the country of OZ, depicting the trade-off between two types of goods or services: Infrastructure (like bridges and roads) and Technology and Research.### Graph Explanation- **Axes**: - The horizontal axis represents Infrastructure projects, ranging from 0 to 22. - The vertical axis represents Technology and Research projects, ranging from 0 to 12.- **Curve**: - The curve is a downward sloping line, showing the inverse relationship between the two goods. As the production of Infrastructure increases, the production of Technology and Research decreases, and vice versa.- **Key Points on the Curve**: - When producing 0 Infrastructure projects, up to 10 Technology and Research projects can be produced. - At 8 Infrastructure projects, approximately 8 Technology and Research projects can be produced. - At 15 Infrastructure projects, approximately 5 Technology and Research projects can be produced. - At 20 Infrastructure projects, the production of Technology and Research falls to about 1.### Multiple Choice Statements1. From a point on the Production Possibility Frontier, the country of OZ can produce more infrastructure projects and more technology and research projects simultaneously but only up to a certain quantity.2. If the country of OZ is currently producing 15 infrastructure projects and wants to produce 4 more, they would give up 7 research and technology projects.3. If the country of OZ is currently producing 10 infrastructure projects and wants to produce 5 more, the opportunity cost would be 2 research and technology projects.4. The country of OZ can produce 15 infrastructure projects and 12 technology and research projects.### InterpretationThe Production Possibility Frontier illustrates the concept of opportunity cost, which signifies the potential loss in one area when resources are allocated to another. The curve's shape and position indicate the maximum efficient production levels for infrastructure and technology and research within the country's current resource limits.

The production possibility frontier (PPF) shows the combination of the two goods or services that…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following graphs show the production possibilities frontiers (PPFS) for Maldonia and Lamponia. Both countries produce lemons and tea, each initially (i.e., before specialization and trade) producing 12 million pounds of lemons and 6 million pounds of tea, as indicated by the grey stars marked with the letter A. TEA (Millions of pounds) 32 28 226 24 PPF 20 16 12 28 Maldonia 0 4 8 12 16 20 24 LEMONS (Millions of pounds) 28 32 22 ? TEA (Millions of pounds) 32 22 28 24 20 16 12 PPF Lamponia A 0 04 8 12 16 20 24 28 LEMONS (Millions of pounds) 32 ? Maldonia has a comparative advantage in the production of production of while Lamponia has a comparative advantage in the . Suppose that Maldonia and Lamponia specialize in the production of the goods in which each has a million pounds of comparative advantage. After specialization, the two countries can produce a total of Jemons million pounds of tea and
Poland requires 4 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of wheat. The Czech Republic requires 6 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of wheat. Suppose that Poland has 1,000 hours of labor and that it completely specializes according to its comparative advantage. How many units of which product will it produce? 250 tons of coal 1,000 bushels of wheat O100 bushels of wheat 4,000 tons of coal One of the main reasons for China to actively invest in foreign companies is to enhance the competitiveness of Chinese firms globally. take advantage of low wages in foreign countries. Omake best use of its technological expertise in the world market. meet the growing demand of the high population in China.
Assume that two countries, A and B, can produce Beef and Barbecues and the production possibilities frontiers of two countries are represented by: Country A: Beef = 30 - 1.25 BBQ and Country B: BBQ = 15 - 0.5 Beef Barbecues are measured in units, beef in kilograms. a) On a single chart, graph the production possibility frontiers for Country A and for Country B. Make sure you use a good scale and mark all your axes and important curves or points. b) Interpret the slope and the shape of the PPF for each country and make the relevant comparisons. c) Assume that each country allocates half of its resources to the production of beef and half of its resources to the production of barbecues. Under autarky (No trade), how much would each country consume of the two products? Plot these points on the graph as Ca and Cb respectively d) Should either of these countries specialize in the production of beef and/or barbecues? If yes, explain which country and which products and why. If they…
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11
Refer to the accompanying figure. If this economy were currently operating at point D, then in order to make more movies: A Movies (number per year) B D Milk (gallons per year) the first productive resources to switch to making movies should be those with the lowest opportunity cost of making milk. no productive resources would need to switch from making milk to movies because each resource should continue to be used according to its comparative advantage. no productive resources would need to switch from making milk to movies because point D is already efficient. the first productive resources to switch to making movies should be those with the highest opportunity cost of making milk.
Consider the production productivity matrix of two goods from the US and India: United States of America India Labor force 200 800 Labor per unit corn 8 50 Labor per unit automobile 10 40 6. In India, how many units of corn is it willing to give-up to produce a unit of automobile? Group of answer choices 0.8 1.25 Both 0.8 and 1.25 Not enough data 7. The US, to achieve comparative advantage in producing a unit of corn, need to give-up how many unit(s) of automobile? Group of answer choices 0.8 1.25 Both 0.8 and 1.25 Not enough data
Suppose the UK has 50 hours of labor available, and the US has 100 hours of labor available. Each can use this labor to produce either cars or bicycles. The UK can produce a car using 10 hours of labor, and a bicycle using 5 hours of labor. The US can produce a car using 5 hours of labor, and a bicycle using 4 hours of labor. Suppose that jointly, the two countries produce 15 bikes and 16 cars. Then it must be that the UK only produces bikes, and the US produces both bikes and cars. the UK produces bikes and cars, and the US only produces cars. the UK only produces cars, and the US only produces bikes. the UK only produces bikes, and the US only produces cars.
Question 1Assume that during the years 2022 to 2025 Woodland Republic could produce only two commodities: tractors and rice. Also, assume that Woodland Republic can procuce at any of the positions represented by the production possibility schedule below. ABCDEFGH Tractors 02479111314 Rice (in tons)1009585706050300 Suppose in 2022 the economy is producing at point D. What is the opportunity cost of producing 6 more tractors in 2023
Q3) Illustrate the Production Possibility Frontier by graph from the table below and explain what will happen to the following changes: If the community decided to move from point C to D If they decided to move from E to D. If they want to produce 400 units from consumer goods and 400 units from capital goods. If they want to produce 500 units from consumer goods and 150 units from capital goods. Table shows the production possibility for total barely and lentils in Oman Point on PPT Consumer goods per year Capital goods per year A 600 150 B 500 250 C 400 350 D 300 400 E 200 500
Germany and Sweden produce cars and kitchen appliances. Germany can produce 5 million cars per year if it produces only cars and no kitchen appliances, or 10 million kitchen appliances per year if it produces only kitchen appliances and no cars. Sweden can produce 1 million cars per year if it produces only cars and no kitchen appliances, or 3 million kitchen appliances per year if it produces only kitchen appliances and no cars. What is Germany’s opportunity cost of manufacturing 1 million cars per year? (Hint: Your answer should be in terms of millions of kitchen appliances per year.) What is Sweden’s opportunity cost of manufacturing 1 million cars per year? (Hint: Your answer should be in terms of millions of kitchen appliances per year.) What is Germany’s opportunity cost of manufacturing 1 million kitchen appliances per year? (Hint: Your answer should be in terms of millions of cars per year.) What is Sweden’s opportunity cost of manufacturing 1 million kitchen appliances per…
Study the cartoon below and answer the guestions that follow. Can't you third world countries keep on growing and growing? CHINA USA Actually, now we've joined the first world countries and this will bring better cooperation and development amongst the countries of the world. [Source: Adapted: Nicholsoncartanoons.com.au] Name any ONE benefit that third world countries may derive from joining first world countries. 3.3.1 Which country from the cartoon above has joined the first world countries? 3.3.2 3.3.3 Briefly describe the term developed countries. What can developing countries do to reduce their dependence on developed countries? 3.3.4 3.3.5 Why is infrastructure necessary for economic growth? Differentiate between absolute and comparative advantages. How would South Africa benefit from its association with BRICS countries? 27 Jam 14 Wachsheen

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