Exploring Microeconomics
8th Edition
ISBN: 9781544339443
Author: Sexton, Robert L.
Publisher: Sage Publications, Inc., Corwin, Cq Press,
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 10P
To determine
Amongst the given economies, the economy that will grow rapidly.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Using a simple model of the Production Possibilities Curve (PPC), label points that show inefficient, and efficient, unattainable production. What are the major assumptions of the underlying the model?b. Use a second model to illustrate the difference between economic expansion and economic growth.
Graphically explain how each of the following events affects the location of a
country's production possibilities curve:
i. The quality of education increases.
ii. The number of unemployed workers increases.
iii. A new technique improves the efficiency of extracting copper from ore.
iv. 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
Knowledge Booster
Similar questions
- Consider 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_forwardConsider a simple economy whose only industry is fishing. In this industry, productivity-the amount of goods and services a worker can produce per hour-is measured by the number of fish one fisherman catches per hour. In the following table, match each example to the productivity determinant it represents. Natural Resources Technological Knowledge Human Capital Physical Capital Examples per Worker per Worker per Worker A route fishing boats can follow to maximize their catch at different points in the day The skills workers develop through training before working on and piloting boats The boats in the fishing fleet The fertile waters in which the fish feed and breedarrow_forwardRefer to Figure 2-3. This economy has the ability to produce at which point(s)?arrow_forward
- Using this table, draw a production possibilities curve. What assumptions is this production possibilities curve based?arrow_forwardThe 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 PPCarrow_forwardAssume that a country with a market economy produces capital goods and consumer goods, use the data that follows to answer the question that follows: Capital Goods Consumer Goods 50 0 40 20 30 35 20 45 10 50 0 51 Does the “law” of increasing opportunity cost apply in the…arrow_forward
- The attainable production points on a production possibilities curve are?arrow_forwardWhen economic growth occurs, the production possibilities frontier shifts outward but no longer limits the amount that can be produced. economy moves along its production possibilities frontier. production possibilities frontier shifts outward. production possibilities frontier becomes steeper.arrow_forwardExplain 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_forward
- How can an economy increase the production of one good without reducing the production of another? Identify at least three factors that contribute to this increase and explain how they contribute to the increase.arrow_forwardAn economy consists of three workers: Larry, Moe, and Curly. Each works ten hours a day and can produce two services: mowing lawns and washing cars. In an hour, Larry can either mow one lawn or wash one car; Moe can either mow one lawn or wash two cars; and Curly can either mow two lawns or wash one car. Calculate how much of each service is produced under the following circumstances, which we label A, B, C, and D: All three spend a their time mowing lawns (A) All three spend all their time washing cars (B) All three spend half their time on each activity (C) Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns (D) Sketch a production possibilities frontier for points A, B, C, and D and explain why the production possibilities frontier has the shape it does. Are any of the allocations calculated in part (a) inefficient? Explain.arrow_forwardThe 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) B) Which combination - K or M - can lead to faster economic growth in the future? How do you know? Explain your answer. 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)?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc