The production possibilities curve below shows the hypotheticalrelationship between the production of guns (national defense)and butter (social goods) in an economy.CombinationABCDEGunsO206080100Butter86420Your response should be a number ONLY.1. What is the marginal opportunity cost of moving from 2 to 4units of butter?Guns.2. What is the total opportunity cost of producing the four (4)unit of butter?Guns

Marginal opportunity cost is the ratio of loss of good and gain of good when there is reallocation…

Answered: The production possibilities curve…

The production possibilities curve below shows the hypothetical relationship between the production of guns (national defense) and butter (social goods) in an economy.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

The production possibilities curve below shows the hypothetical
relationship between the production of guns (national defense)
and butter (social goods) in an economy.
Combination
A
B
C
D
E
Guns
O
20
60
80
100
Butter
8
6
4
2
0
Your response should be a number ONLY.
1. What is the marginal opportunity cost of moving from 2 to 4
units of butter?
Guns.
2. What is the total opportunity cost of producing the four (4)
unit of butter?
Guns

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Production Possibility Frontier (PPF) - This graph shows the maximum combination of two goods that an economy can produce, given its resources and technology. It is used to illustrate the concept of opportunity cost and to explain the trade-offs that must be made when choosing how to allocate resources. Show this graph with an example please.
Which of the following would be most likely to shift the production possibilities curve to the right? a sudden and substantial expansion of consumer wants an improvement in the literacy level and general level of education a decline in the size of the population and labor force shifting resources from the production of capital goods to the production of consumer goods
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If a family spends its entire budget in a given time frame, the family can afford either 95 cans of vegetables or 40 frozen dinners. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of a can of vegetables in the time frame?
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See the image below for econ help.
The production possibilities curve illustrates the basic principle that: Question 70 options: an economy automatically seeks that level of output that employs all of its resources any production point below the curve reflects high opportunity cost the production of more of any one item will in time require smaller and smaller sacrifices of other items if all the resources of an economy are fully used, more of one item could be produced only if less of another item is produced any production point above the curve reflects low opportunity cost
1)Which of the following is consistent with a point below an economy's production possibilities frontier (PPF)? a)The economy is operating efficiently. b)The production of one good can only be increased if the production of another good is reduced. c)None of the above. d)There are unemployed resources.
Question attached
Consider the graph. Suppose the economy is currently at a point E on the production possibilities curve producing a units of services and b units of goods. After technological development raises the maximum amount of goods that can be produced by the economy, the economy moves to point E', producing a' and b' units of services and goods respectively. Which of the following situation is possible? Select all that apply. a. At E', a' = a and b' > b b. At E', a' > a and b' = b c. At E', a' > a and b' > b d. At E', a' < a and b' > b e. At E', a' < a and b' < b