Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 2, Problem 9SPA
(a)
To determine
Construct a graph that illustrates the farm’s
(b)
To determine
Identify the impacts of the new technology on the farm’s PPF.
(c)
To determine
Identify the
(d)
To determine
Identify the efficiency of the production process.
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ple Choice
ý the letter of the choice that best completes the statement or answers the question.
1. Which of the following is an example of lower production costs brought about by the use of technology?
the delivery costs of gasoline to the consumer by diesel trucks
the use of e-mail to replace slower surface mail
а.
b.
the making of breads and pastries in local shops rather than large bakeries
the importing of fresh vegetables from South America rather than using canned
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с.
d.
2. What is the effect of import restrictions on prices?
They cause prices to drop.
b.
a.
They cause prices to rise.
They often cause prices to rise steeply and then drop.
d. They usually do not have any lasting effect on price.
с.
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sell the goods now and try to invest the money instead of resupplying
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store the goods until the…
Final Year Exam: Economics
3 of 24
The definition of Product Possibility Frontier is
The graph which indicates the various production possibilities of two products when resources are fixed.
The graph that shows the highest amount of money a person can make over a period of time.
The graph that shows how supply and demand works.
The graph that tells us how well an economy is doing
3. A farm grows wheat and produces pork. The marginal cost of producing each of these products
increases as more of it is produced.
a. Make a graph that illustrates the farm's PPF.
b. The farm adopts a new technology that allows it to use fewer resources to fatten pigs. Use your graph
to illustrate the impact of the new technology on the farm's PPF.
c. With the farm using the new technology described in part (b), has the opportunity cost of producing a
ton of wheat increased, decreased, or remained the same? Explain and illustrate your answer.
d. Is the farm more efficient with the new technology than it was with the old one? Why?
Chapter 2 Solutions
Macroeconomics
Ch. 2.1 - Prob. 1RQCh. 2.1 - Prob. 2RQCh. 2.1 - Prob. 3RQCh. 2.1 - Prob. 4RQCh. 2.1 - Prob. 5RQCh. 2.1 - Prob. 6RQCh. 2.2 - Prob. 1RQCh. 2.2 - Prob. 2RQCh. 2.2 - Prob. 3RQCh. 2.2 - Prob. 4RQ
Ch. 2.2 - Prob. 5RQCh. 2.3 - Prob. 1RQCh. 2.3 - Prob. 2RQCh. 2.3 - Prob. 3RQCh. 2.3 - Prob. 4RQCh. 2.3 - Prob. 5RQCh. 2.3 - Prob. 6RQCh. 2.3 - Prob. 7RQCh. 2.4 - Prob. 1RQCh. 2.4 - Prob. 2RQCh. 2.4 - Prob. 3RQCh. 2.4 - Prob. 4RQCh. 2.4 - Prob. 5RQCh. 2.4 - Prob. 6RQCh. 2.4 - Prob. 7RQCh. 2.5 - Prob. 1RQCh. 2.5 - Prob. 2RQCh. 2.5 - Prob. 3RQCh. 2 - Prob. 1SPACh. 2 - Prob. 2SPACh. 2 - Prob. 3SPACh. 2 - Prob. 4SPACh. 2 - Prob. 5SPACh. 2 - Prob. 6SPACh. 2 - Prob. 7SPACh. 2 - Prob. 8SPACh. 2 - Prob. 9SPACh. 2 - Prob. 10SPACh. 2 - Prob. 11APACh. 2 - Prob. 12APACh. 2 - Prob. 13APACh. 2 - Prob. 14APACh. 2 - Prob. 15APACh. 2 - Prob. 16APACh. 2 - Prob. 17APACh. 2 - Prob. 18APACh. 2 - Prob. 19APACh. 2 - Prob. 20APACh. 2 - Prob. 21APACh. 2 - Prob. 22APACh. 2 - Prob. 23APACh. 2 - Prob. 24APACh. 2 - Prob. 25APA
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