True or False.Please explain why the statement is true orfalse.1. Consider and economy that producestwo goods: wine and bread. When there isan improvement in technology in theproduction of wine, holding all elseconstant, society faces larger opportunitycosts from shifting productive resourcesfrom producing bread to wine.

When there is an improvement in technology then the cost of producing wines decrease. This implies a…

Answered: True or False. Please explain why the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Efficiency in the production possibilities model Suppose South Africa produces only two goods: alfalfa and blu rays. The following graph shows South Africa's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. 100 80 PPF 60 40 20 D 20 40 60 80 100 ALFALFA (Millions of bushels) Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. Point Inefficient Efficient Unattainable A B E F BLU RAYS (Milions)
Consider an economy than only produces two goods - Blueberries and Batteries. Step 1: Draw a production possibilities frontier (PPF) for this economy. Label blueberries on the vertical axis and batteries on the horizontal axis. Label one point that is "efficient", one point that is "inefficient", and one point that is "unattainable". Step 2. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a technological change that increased the production of batteries only. (Hint: The intercept for blueberries will not change.) Clearly label the new PPF. Step 3. Draw another PPF of the economy with the axes labeled. Grab another color pen/pencil/highlighter and show how the PPF would change if there was a drought that destroyed some of the blueberry harvest. (Hint: The intercept for batteries will not change.) Clearly label the new PPF. Step 4: Draw another PPF of the economy with the axes labeled. Grab…
Question 06: Refer to the production possibilities frontier to the right for an economy that produces just two goods: trucks and boats. Label each point as: efficient (resources completely utilized), inefficient (some resources under-employed, or not-possible (not enough resources to produce the quantities of trucks and boats at present) Question 7 options: A) A, B, and C are all inefficient; D is efficient; E is not-possible B) A, B, and C are all efficient; D is inefficient; E is not-possible C) A, B, and C are all efficient; D is not-possible; E is inefficient D) A, B, and C are all not-possible; D is efficient; E is efficient
Question 3 The U.S. economy's Production Possibilities Frontier is made up of two goods: oranges and automobiles. The U.S. economy moves from point A, where it produces 100 oranges and 200 cars, to point B, where it produces 200 oranges and 150 cars. It follows that Point A is an inefficient point. Point B may be an inefficient point There is not enough information to answer the question Point B is an inefficient point Question 5 Which of the following statements are false? 1. If scarcity did not exist, then neither would the Production Possibilities Frontier. II. All Production Possibilities Frontiers are bowed out from the origin. III. All Production Possibilities Frontiers are made up of two goods or services. IV. Opportunity cost can not be illustrated with the Production Possibility Frontier. OL True statement. III. IV II and IV Question 16 Which of the following will have no impact on the demand for Yogurtland frozen yogurt in San Diego? A change in the price of frozen yogurt…
8. A small bakery makes baguettes and muffins. With the resources available (workers, flour, machines) this bakery can produce either 1500 baguettes or 2000 muffins per day. a. What is the opportunity cost of an extra muffin in terms of baguettes? b. Assume that production is currently 1200 muffins and 600 baguettes. If the bakery wanted to expand its muffin production to 1300 muffins per day, how many baguettes would be baked?
Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, attainable, or not attainable. Check all that apply. Inefficient Efficient Attainable Not attainable Point A B E F O O (O
Consider the production possibilities frontier below. Assume that an economy is producing the mix of outputs represented by point A. What would have to happen in order for this economy to produce at point B? Output 2 Technological progress A recession Output 1 Giving up some output 1 to produce more output 2 A decrease in taxes
Figure 1 shows the PPF for an economy that produces Food and Clothes. Suppose the economy is currently producing 170 Food and 264 Clothes. What is the economy's opportunity cost of producing 150 additional Food? A) 90 Clothes B) 120 Clothes C) 170 Clothes D) 220 Clothes
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Question 17 A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called a supply curve. opportunity cost. a production possibilities frontier (PPF). O absolute advantage. a consumer demand curve.
1. Specialization and production possibilities Suppose South Africa produces only tablets and smartphones. The resources that are used in the production of these two goods are not specialized- that is, the same set of resources is equally useful in producing both smartphones and tablets. The shape of South Africa's production possibilities frontier (PPF) should reflect the fact that as South Africa produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone remains constant The following graphs show two possible PPFS for South Africa's economy: a straight-line PPF (PPF1) and a bowed-out PPF (PPF2).
Consider a simple economy which produces two goods; pizzas and tractors. Using the production possibilities boundary and graphs for the pizza and tractor market show and explain how the precise allocatively and productively efficient point on the production possibilities boundary can be determined. Please draw a graph to show, not just write step by step.

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