Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 2, Problem 6SQ
To determine
The assumption on which the
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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.
Which of the following are made constant when applying the production possibilities curve theory?
Select one:
a. Trading rate between goods
b. Total exports and imports
c. Total number of factors of productions
d. International pricing
Consider production possibilities of goods and services in China, Since 1980, the population of China has grown by over 40%, from just under 1.0 billion to more than
1.4 billion people. In addition, there has been massive investment in both human and physical capital. Given these changes, we can expect that China's production
possibilities frontier has shifted
and become
curved (bowed outward).
Answers A - D
A.outward; more
B.inward, more
C.inward; less
D.outward, less
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
- 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_forwardAny point on a country's production possibilities curve represents a combination of two goods that an economy will never be able to produce. can produce using all available resources and technology. can produce using some portion, but not all, of its resources and technology. may be able to produce in the future with more resources and/or technology.arrow_forwardRefer to the following production possibilities curves. Curve (a) is the current curve for the economy. Given production possibilities curve (a), the combination of capital and consumer goods indicated by point L: Consumer goods N Select one: O (a) (b) Capital goods a. would entail an inefficient use of society's resources. b. is beyond the productive capacity of this society. c. would entail substantial unemployment. d. suggests the productive capacity of the system is declining.arrow_forward
- Which of the following are the assumptions of the production possibility curve? a. Two goods are produced by the economy b. Technology and skills available are constant c. All of the options d. Resources available are constant in the economyarrow_forwardAssuming Line BB is our original curve, suppose there is a major technological breakthrough in the consumer goods industry, and the new technology is widely adopted. Which curve in the diagram would represent the new production possibilities curve?arrow_forwardassume county is in recession . assume the county only produces food and clothing draw a correctly labeled a production possibilities curve for the county show a point that could represent the current output combination label aarrow_forward
- How would this situation affect a nation's production possibility curve? The nation passes a law requiring all employers to give the employees 16 weeks of paid vacation each year. How would this situation affect a nation's production possibility curve? A shift to online delivery increases access to education in the nation's colleges and universities but might have a detrimental impact on the quality of education. Timothy quits his job which pays $65 900 a year to enrol in a 2-year graduate program. His annual school expenses are $62 600 for tuition, $8400 for books and $3500 for food. What is the opportunity cost of attending the graduate program?arrow_forwardEconomy A produces more capital goods and fewer consumers goods than economy B. Which economy will grow more rapidly? Draw two production possibilities curves, one for Economy A and one for Economy B. Demonstrate graphically how one can grow more rapidly than the other.arrow_forward1. Explain the Malthusian trap using graphs. 2. Is technological progress enough to free an economy from the Malthusian trap? Use graphs to answer the question.arrow_forward
- Examine the law of variable proportions and show graphically. Which stage is optimum for production and why?arrow_forwardGraph 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_forward
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