ECON 250 ASSIGNMENT 3

Suppose the fictional country of Everglades produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for millet, an agricultural good, and electric scooters, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of avian flu that sickens millions of workers. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.   PPF0701402102803504201801501209060300ELECTRIC SCOOTERS (Thousands)MILLET (Millions of bushels) PPF

How would each of the following events affect a country's production possibilities frontier? A shift outward means the potential to produce even more goods. A shift inward means society now has less potential to produce goods. •[OUTWARD or INWARD] The quality of education increases •[OUTWARD or INWARD] A devastating earthquake destroys numerous production facilities. •[OUTWARD or INWARD] The U.S. Congress passes a law that allows more work visas to be issued to foreigners with specialized technical skills.   Question 12 options:   A)  in order: INWARD, OUTWARD, OUTWARD   B)  in order: INWARD, INWARD, INWARD   C)  in order: OUTWARD, OUTWARD, INWARD   D)  in order: OUTWARD, INWARD, OUTWARD

Shifts in production possibilities Suppose South Africa produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for barley, an agricultural good, and locomotives, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of avian flu that sickens millions of workers.   Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.

State whether each entry below is positive or normative—explain your answer. Low-income people pay too much for housing. Imports from other countries are swamping US department storms. The number of US farms has decreased over the past 50 years. Toyota expands parts production in the US. The rural population in the US is declining.

Using the production possibilities frontier model with two goods X and Y, the opportunity cost of producing one extra unit of X is: I. the quantity that we have to give up of Y II. increasing as more of X is produced III. decreasing as more of X is produced only I is correct I, II, and III are correct only III is correct both I and II are correct

Question 3 Which of the following is a normative statement? Without active fiscal policy, a nation would not be able to recover quickly from a recession.   All points on the production possibilities frontier (PPF) are efficient.   Macroeconomics is the study of the national economy as a whole.   College students often enjoy economics classes.   Bread recipes usually include salt.   Question 4   The area inside (within) the production possibilities frontier (PPF) contains _________ points.   normative   positive   efficient   inefficient   high opportunity cost   Question 5 When the price falls, what happens?   There is an increase in demand.   There is an increase in the quantity demanded.   There is a decrease in demand.   There is a decrease in the quantity demanded.   There is no change in…