Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 2, Problem 14SQ
To determine
The economy that is more likely to produce the greatest growth in PPC.
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The production possibility frontier is a graph that shows
Â
Â
Select one:
a.
how much goods a society can consume at various average price levels.
b.
all combinations of goods that a society can produce if it uses all its resources efficiently.
c.
all combinations of goods that a society can consume if it uses all its resources efficiently.
d.
all combinations of factors that a society can use if there are no idle factors.
e.
the rate at which a societyĘąs output will grow if it uses all resources efficiently.
The following graph shows a production possibilities curve for a hypothetical country.
Suppose that due to an increase in human capital, a country experiences economic growth.
Adjust the following graph to show the effect of advances in human capital on the economy's production possibilities curve.
Consumption goods
PPC
Capital goods
6
PPC
The following graph shows the production possibilities curve for an economy that produces Consumption goods and Capital goods. Use the graph to answer the following questions
A) How do you describe what is happening as the economy moves from point P to point L? (discuss it in terms of economic efficiency)Â Â
B) Which combination - K or M - can lead to faster economic growth in the future? How do you know? Explain your answer.Â
C) If the economy is currently operation at point L, what is the opportunity cost of producing 10 more Capital goods (Moving from combination L to combination M)?
Chapter 2 Solutions
Micro Economics For Today
Ch. 2.6 - Prob. 1YTECh. 2.7 - Prob. 1GECh. 2 - Prob. 1SQPCh. 2 - Prob. 2SQPCh. 2 - Prob. 3SQPCh. 2 - Prob. 4SQPCh. 2 - Prob. 5SQPCh. 2 - Prob. 6SQPCh. 2 - Prob. 7SQPCh. 2 - Prob. 8SQP
Ch. 2 - Prob. 9SQPCh. 2 - Prob. 10SQPCh. 2 - Prob. 11SQPCh. 2 - Prob. 12SQPCh. 2 - Prob. 1SQCh. 2 - Prob. 2SQCh. 2 - Prob. 3SQCh. 2 - Prob. 4SQCh. 2 - Prob. 5SQCh. 2 - Prob. 6SQCh. 2 - Prob. 7SQCh. 2 - Prob. 8SQCh. 2 - Prob. 9SQCh. 2 - Prob. 10SQCh. 2 - Prob. 11SQCh. 2 - Prob. 12SQCh. 2 - Prob. 13SQCh. 2 - Prob. 14SQCh. 2 - Prob. 15SQCh. 2 - Prob. 16SQCh. 2 - Prob. 17SQCh. 2 - Prob. 18SQCh. 2 - Prob. 19SQCh. 2 - Prob. 20SQ
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Similar questions
- Explain how (if at all) each of the following events affects the location of a country’s production possibilities curve:a. The quality of education increases.b. The number of unemployed workers increases.c. A new technique improves the effifi ciency of extracting copper from ore.d. A devastating earthquake destroys numerous production facilities.arrow_forwardConsider the graph. What will happen if technological development raises the maximum amount of goods that can be produced by the economy?  a. A movement along the production possibilities curve towards the horizontal axis. b. An outward rotation of the production possibilities curve at its intersection with the vertical axis. c. An outward rotation of the production possibilities curve at its intersection with the horizontal axis. d. An outward shift of the production possibilities curve.arrow_forwardUse the figure below to answer the following questions. What is the opportunity cost of increasing investment from 6 units to 8 units? Production Possibilities 10 10 CONSUMER GOODS (units per time) INVESTMENT GOODS (units per time)arrow_forward
- Graph 1: Draw a production possibilities model with 4 points labeled A, B, C, D, one inside, two on, and one outside the production possibilities curve. Explain the 4 points in terms of scarcity, choice, and efficiency. Graph 2: Draw a production possibilities model which illustrates economic growth. Graph 3: Draw a production possibilities model and using your own numbers, explain the concept of the law of increasing opportunity cost. Graph 4: Draw a production possibilities model for North Korea and label the Y axis Guns, and the X axis Butter.  Put two points, A and B, on the curve.  Using the two points, explain the concept of government (or market) failure.arrow_forwardScarcity is a problem because... Group of answer choices There are not enough resources to produce all the goods and services people want to purchase. There are only small quantities of resources available on earth Not everyone has the same amount of resources, such as land and labor Unemployment exists, and therefore some people do not have enough resources to meet their basic needs.arrow_forwardThe fundamental economic problem is one of scarcity. The basic questions of economics become: What to produce? How to produce? For whom to produce?arrow_forward
- Which point(s) are efficient? Briefly explain why. B Points A, B, C, and D because they are attainable. Points B, C, and D because this is where maximum output is produced with available resources. Point A because it is inside the production possibilities frontier. Point E because it is where the most capital and consumption goods combined are produced. A D Point B because it is where the most resources are used to produce capital goods. Which point(s) are inefficient? Briefly explain why. PPF O A. Points B, C, and D because they are on the production possibilities frontier. O B. Points B, C, D, and E because they are unattainable. Consumption goods O C. Points A, B, C, and D because they are attainable. O D. Point E because it is unattainable. OE. Point A because production there is not using all available resources. At which point is the country's future growth rate likely to be the highest? Briefly explain why. O A. Point E because it is where the production possibilities frontier…arrow_forward间。 H f in a certain economy, jam and bread are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more jam and more bread, relative to the quantities of those goods that are being produced now? Unemployed labor is put to work producing jam and bread, The economy puts its idle capital to work producing jam and bread. The economy experiences economic growth. All of the above are correct.arrow_forwardThe graph shows a production possibilities curve for 2023 and two potential production possibilities curves for 2024, denoted 2024 and 2024. a. The labeled point that corresponds to maximum feasible 2023 production and is more likely to be associated with the curve denoted 2024A, is ***** Capital Goods 10- 0 Production Possibilities Curves. X O N Y 2023 2024A 2024B Consumption Goods 10arrow_forward
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