... ecan produce all combinations A. inside the PPF but not on the PPF or outside the PPE B. on the PPF and outside the PPE C. inside the PPF, on the PPF, and outside the PPF OD. on the PPF but not inside or outside the PPF DE. inside the PPF and on the PPE /hich points are attainable? DA. Points A, B, C, D, and E B. Points A, B, and C only OC. Points F and G only O D. Points D and E only O E. Points A, B, C, F, and G

... ecan produce all combinations A. inside the PPF but not on the PPF or outside the PPE B. on the PPF and outside the PPE C. inside the PPF, on the PPF, and outside the PPF OD. on the PPF but not inside or outside the PPF DE. inside the PPF and on the PPE /hich points are attainable? DA. Points A, B, C, D, and E B. Points A, B, and C only OC. Points F and G only O D. Points D and E only O E. Points A, B, C, F, and G

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 6P

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( a) why is the slop of PPF downward? (b) why does the PPF look concave to the origin? (c) What is positive economic analysis?
Elif can produce 6 pies or 30 cakes in 1 hour. Ahmet can produce 10 pies or 20 cakes in 1hour.a) Draw the PPF lines for Elif and Ahmet.b) If each spends 30 minutes of each hour for producing pies and 30 minutes for producing cakes, how many pies and cakes does each produce?c) What is the opportunity cost of producing pies for Elif? What is the opportunity cost of producing pies for Ahmet?d) What is the opportunity cost of producing cakes for Elif? What is the opportunity cost of producing cakes for Ahmet?e) Who has a comparative advantage in producing pies and who has a comparative advantage in producing cakes?f) On the PPF lines, show what Elif produces and what Ahmet produces when they specialize.g) Suppose that they set the exchange price as 1 Pie = 3 Cakes. If they specialize and trade, show an exchange situation that is beneficial for both (compared to the situation you found at part (b))?h) What is the minimum and maximum exchange price they could have determined for an exchange…
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Assume a country produces haircuts and shirts with inputs of labour. The country has 100 hours of labour available. A haircut requires 30 minutes of labour, while a shirt requires 2 hours of labour. Solvve sub-parts as well. a. Construct country’s production- possibility frontier. b. Suppose there is an increase in the labour hours from 1,000 to 1,500 labour hours. Indicate on the PPF how it will impact the production, if at all and brief explain why?
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