Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 1, Problem 7P
To determine
The impact of technological improvement on the production possibility frontier .
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Check out a sample textbook solutionStudents have asked these similar questions
Suppose that United States is currently producing two goods: tanks and cars using its current resources. As the country is
preparing for a war, it intends to produce more tanks and to do so, it starts coverting its car factories into tank factories.
Which of the following is true?
O The production possibilities curve will show the increasing opportunity costs as more tank is produced.
The production possibilities curve for cars and tanks will shift outward.
O The production possibilities curve will show decreased opprotunity costs as more tank is produced.
O The production possibilities curve will shift inward.
Which of the following is correct about the production possibilities curve?
An economy can produce only on the production possibilities frontier line given its current available
resources and technology.
O An economy can produce at any point inside or outside the production possibilities frontier given its current
available resources and technology.
O An economy can produce at any point inside the production possibilities frontier, but not on the frontier
without discovery of new resources or technology or real economic growth.
O An economy can produce at any point on or inside the production possibilities frontier, but not outside the
frontier without discovery of new resources or technology or real economic growth.
O An economy can produce at any point on or inside the production possibilities frontier, but government
price controls are needed for economy to produce beyond the frontier line.
11.Explain how (if at all) each of the following events affects the location of a country’s production possibilities curve: LO5
a.The quality of education increases.
b.The number of unemployed workers increases.
c.A new technique improves the efficiency of extracting copper from ore.
d.A devastating earthquake destroys numerous production facilities.
Chapter 1 Solutions
Microeconomics
Ch. 1.2 - Prob. 1QQCh. 1.2 - Prob. 2QQCh. 1.2 - Prob. 3QQCh. 1.2 - Prob. 4QQCh. 1.A - Prob. 1ADQCh. 1.A - Prob. 2ADQCh. 1.A - Prob. 3ADQCh. 1.A - Prob. 1ARQCh. 1.A - Prob. 2ARQCh. 1.A - Prob. 1AP
Ch. 1.A - Prob. 2APCh. 1.A - Prob. 3APCh. 1.A - Prob. 4APCh. 1.A - Prob. 5APCh. 1.A - Prob. 6APCh. 1.A - Prob. 7APCh. 1.A - Prob. 8APCh. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8P
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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
- Based on the production possibilities frontier shown below, if this economy decides to shift its resources from only producing books in order to produce 8,000 pairs of sneakers, what is the opportunity cost of producing one pair of sneakers? Books (in thousands) 12 10 8 O 2 pairs of sneakers 2 books 6 0.25 pairs of sneakers O 0.25 books Pairs of Sneakers (in thousands) 10 12arrow_forwardOpportunity Cost: The following table illustrates the points a student can earn on examination in Economics and Biology if the student uses all available hours for study. Economics Biology 100 40 90 60 80 75 70 85 60 93 50 98 40 100 What is the Opportunity cost to this student for the additional amount of study time on economics required to move her grade from 90 to 100?arrow_forwardFigure #1 Wheat z. Y W. Tractorsarrow_forward
- Consider the figure at the right, which represents the production possibilities boundary for pizzas and guns. The combination(s) of pizzas and guns at O A. points A and C are just attainable but inefficient. O B. points A and C are less efficient than point B. O C. point B is efficient but unattainable. O D. point B is attainable but inefficient. O E. points A and C are unattainable. Quantity of Pizza Quantity of Guns Carrow_forwardAssume that your company produces two goods: laptops and tablets. Assume aslo that your company has limited resources( including time) to devote to producing these items. Now assume that the laptop team does something to improve the efficiency of making laptops, while the tabley holds to old methods. Given the change you can a) only increase your production of laptops b) only increase your production of tablets c) increase production of both items d) not increase your production in either tablets or laptops.arrow_forwardIf Korea is currently producing at efficiency, and it proceeds to increase the production of missiles, then, as long as nothing else changes, its: O A. Production-possibilities curve will shift outward. O B. Production-possibilities curve will shift inward. O c. Production of non-military goods will increase. O D. Production of non-military goods (civilian goods) will decrease.arrow_forward
- 12. Suppose that, on the basis of a nation’s production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9000 pizzas. Relate this information to the following statement: “Through international specialization and trade, a nation can reduce its opportunity cost of obtaining goods and thus ‘move outside its production possibilities curve.arrow_forwardSMARTPHONES (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 100arrow_forwardThe shape of the production possibilities curve usually has a concave-shape. What does say about the factors of production when the production possibilities curse is a straight line? O diminishing return between the production of featured goods no diminishing return between the production of featured goods O increasing return between the production of featured goods O the factors of production are incapatablearrow_forward
- Which of the following scenarios might explain what an economy would be operating inside its production possibilities curve? Select one: O a. Because damage to natural resources, such as might be caused by deforestation leading to erosion of topsoil, has shrunk the land resource O b. Because of discrimination against employing workers of a certain race or gender O . Because shrinking population has reduced the number of productive workers in the economy O d. Because technological innovations have increased the productivity of labour and capitalarrow_forward1. Improvements in technology. 2. Increases in the supply (stock) of capital goods 3. Purchases of expanding output. 4. Obtaining the optimal combination of goods, each at least-cost production. 5. Increases in the quantity and quality of natural resources. 6. Increases in the quantity and quality of human resources. Multiple Choice Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve? O 12.5, and 6 only Help 3 and 4 only Save & Exitarrow_forwardQuestion 14 ) Listen A nation that devotes more of its resources to the production of capital goods is likely to: a) Cause its production possibilities curve to shift outward b) Cause its production possibilities curve to shift inward c) Decrease the slope of its production possibilities curve O d) Increase the slope of its production possibilities curve Question 15 ) Listen Refer to the table. Answer questions on the basis of the data given in the following table. Produc tion Possibilities Table Products Avocados A B D E 20 24 40 60 Soybeans 15 10 9 5 If the economy is producing at production alternative C, the opportunity cost of one more avocados (or twenty fifth units of avocados) will be? 1) 1/2 units of soybeans. O 2) 1/4 of a unit of soybeans. 3) 4 units of soybeans. 4) 2 units of soybeans.arrow_forward
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