EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 1, Problem 2RQ
To determine
To ascertain:The nature of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Tools
4. Shifts in production possibilities
Suppose the fictional country of Yosemite produces two types of goods: agricultural and capital. The following diagram shows its current production
possibilities frontier for rice, an agricultural good, and axles, a capital good.
Drag the production possibilities frontier (PPF) on the graph to show the effects of a time-saving innovation in the manufacturing of axles.
Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will
snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.
AXLES (Thousands)
420
350
280
210
140
70
0
PPF
80
120
160
RICE (Millions of bushels)
200
240
PPF
Supermarché Jean Claude has decided to manufacture its own brand of non-alcoholic beverages, called
NAB, and chocolate bars, called S-JC. A certain amount of money has been allocated to the production
of these two products. Jean Claude believes in the old saying that a picture is worth a thousand words,
and once again, he has called on you. This time, he wants to see diagrams that illustrate the effects of
each of the following events on the production possibilities for NABS and S-JCs so he can visualize the
situation.
(a) A new and more efficient method of producing non-alcoholic beverages is discovered.
(b) The demand for both non-alcoholic beverages and chocolate bars increases.
(c) More workers are hired to produce S-JCs.
(d) Resources are transferred from S-JC production to NAB production.
(e) All workers are trained so that the quality of their labour services improves.
Instructions
Produce the series of graphs with accompanying texts (150-175 words) so that Uncle Jean Claude…
The accompanying graph contains the production.
possibilities frontier (PPF) for Rubberland. Rubberland only
makes two products, rubber band balls and rubber hoses, and
on a given day can produce according to the PPF in the
graph. Point A on the PPF represents the combination of the
two goods Rubberland currently produces.
When a new method of rubber processing is discovered, the
productivity of all Rubberland's inputs increases. Please shift
the PPF to show this change.
Assume that Rubberland does not make more rubber band
balls than they originally made at point A but still maximize
their productive capabilities. Move point A to their new
production point.
How many more rubber hoses do they now produce per day
than before?
20
more hoses per day
Quantity of rubber band balls
Incorrect
200
180
160
140
120
100
80
60
40
20
0
0
Rubberland's Production Possibilities
10
20
30 40 50 60
Quantity of rubber hoses
PPF
70
80
90 100
Chapter 1 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 1.2 - Prob. 1MQCh. 1.2 - Prob. 2MQCh. 1.3 - Prob. 1TTACh. 1.3 - Prob. 2TTACh. 1.4 - Prob. 1TTACh. 1.4 - Prob. 2TTACh. 1.4 - Prob. 1MQCh. 1.4 - Prob. 2MQCh. 1.4 - Prob. 1.1MQCh. 1.4 - Prob. 1.2MQ
Ch. 1.5 - Prob. 1TTACh. 1.5 - Prob. 2TTACh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Prob. 10RQCh. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Prob. 1.5PCh. 1 - Prob. 1.6PCh. 1 - Prob. 1.7PCh. 1 - Prob. 1.8PCh. 1 - Prob. 1.9PCh. 1 - Prob. 1.10P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- The accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before? 10 more hoses per day Quantity of rubber band balls 200 180 160 140 120 100 80 60 40 20 0 0 Rubberland's Production Possibilities. 10 20 30 40 50 60 Quantity of rubber hoses PPF 70 80 90 100 6arrow_forwardThe accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before? Quantity of rubber band balls 200 180 160 140 120 100 80 60 40 20 0 0 Rubberland's Production Possibilities 10 20 30 40 50 60 Quantity of rubber hoses PPF 70 80 90 100arrow_forwardThe accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before? about us more hoses per day careers privacy policy 200 er band bag terms of use 160 140 120 100 80 60 40 20 0 0 Rubberland's Production Possibilities 10 contact us 20 help A 30 40 50 60 Quantity of rubber hoses PPF 70 80 90 100arrow_forward
- Suppose the fictional country of Biscayne produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for sorghum, an agricultural good, and electric scooters, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a time-saving innovation in the manufacturing of electric scooters. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. ELECTRIC SCOOTERS (Thousands) 180 150 120 90 30 0 30 60 90 PPF 120 SORGHUM (Millions of bushels) 150 180 бо PPF ?arrow_forwardThe accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardThe accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before?arrow_forward
- Suppose Ireland produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for corn, an agricultural good, and industrial robots, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a long drought that reduces the amount of water available for farmers to use for irrigation. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. 120 100 PPF 80 20 PPE 60 120 180 240 300 360 CORN (Millions of bushels) INDUSTRIAL ROBOTS (Thousands)arrow_forwardQuestiono On the PPF below, point D is most likely: Production Possibilities Frontier (PPF) Production of Pizza B O neither productively or allocatively efficient O productively efficient, but not allocatively efficient O both productively and allocatively efficient O allocatively efficient, but not productively efficient E с Production of Sugararrow_forward140 120 100 20 PPP 10 20 30 40 50 60 70 80 90 100 Quantity of rubber hoses (Figure: Figure: Rubberland's Production Possibilities) Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the lighter PPF curve in the graph. Point A on the lighter PPF curve represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the PPF shifts to the right, the darker PPF curve. Assume that Rubberland does not make more rubber hoses than they originally made at point A but still maximize their productive capabilities. How many more rubber hand balls do they now produce per day than before? O 59 O 30 O 20 Q 39 Quantity of rubber hnd hallsarrow_forward
- The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and steel. The black points (plus symbols) represent three possible output levels in a given month. Point A is at (500, 12); B is at (420, 16) and C is at (300, 20). CLOTHING (Millions of pieces) 32 28 24 20 16 12 8 V 0 PPF 100 200 15 B+ +> 300 400 500 STEEL (Millions of tons) 600 700 800 Suppose the economy initially produces 12 million pieces of clothing and 500 million tons of steel, which is represented by point A. The opportunity cost of producing an additional 4 million pieces of clothing (that is, moving production to point B) is [Select] tons of steel. Suppose, instead, that the economy currently produces 420 million tons of steel and 16 million pieces of clothing, which is represented by point B. Now the opportunity cost of producing an additional 4 million pieces of clothing (that is, moving to point C) is [Select] tons of steel. Comparing your answers in the two…arrow_forwardConsider the production possibilities frontier (PPF) that shows the trade-off between the production of cotton and the production of soybeans depicted in the figure to the right. Use the three-point curved line drawing tool to show the effect that improved fertilizers would have on the initial production possibilities frontier by drawing a new production possibilities frontier. Properly label this curve. Carefully follow the instructions above, and only draw the required objects. FRANarrow_forwardAssume an economy producing only two goods (shoes and computers) with a fixed amount of productive resources and technology and employing all its productive resources to the maximum.Production in this economy is subjected to the law of diminishing marginal returns and resourcesare assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers andvice versa is 1. On the basis of the foregoing assumptions, answer the following questions: What happens to the PPF when the economy discovers an improved technology for producing shoes?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
