20. Figure 1.1 shows the production possibilities for a city deciding how to allocate resources between police stations and hospitals. According to the figure, which production possibility requires more resources than the city has as its disposal? Figure 1.1 Police Stations Hospitals A. Point A B. Point B C. Point C D. Point D D

20. Figure 1.1 shows the production possibilities for a city deciding how to allocate resources between police stations and hospitals. According to the figure, which production possibility requires more resources than the city has as its disposal? Figure 1.1 Police Stations Hospitals A. Point A B. Point B C. Point C D. Point D D

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 21CTQ: It is clear that productive inefficiency is a waste since resources are used in a way that produces...

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Similar questions

Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
What are the similarities between a consumers budget constraint and societys production possibilities frontier, not just graphically but analytically?
What does a point inside the production possibility frontier represent?
What does a production possibilities frontier illustrate?
In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent?
It is clear that productive inefficiency is a waste since resources are used in a way that produces less goods and services than a nation is capable of. Why is allocative inefficiency also wasteful?
A country called Sherwood is very heavily covered with a forest of 50,000 trees. There are proposals to clear some of Sherwoods forest and grow com, but obtaining this additional economic output will have an environmental cost from reducing the number of trees. Table 12.11 shows possible combinations of economic output and environmental protection. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the number of trees, and the quantity of economic output, measured in corn, on the vertical axis. Which choices display productive efficiency? How can you tell? Which choices show allocative efficiency? How can you tell? In the choice between T and R, decide which one is better. Why? In the choice between T and S, can you say which one is better, and why? If you had to guess, which choice would you think is more likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice Q or S? Why?
In what ways (it) company investments in research and development create positive externalities?
Question. Using the table below, answer the questions that follow it. A B C D EPizza 0 1 2 3 4Robot 20 18 14 8 0 a. What are the assumptions for a given production possibilities curve? b. What is the opportunity cost of one pizza when moving from B to point C? What moving from D to point E? c. Do these combinations demonstrate constant or increasing opportunity costs?
3. Suppose the Canada can produce cattle or corn with a given amount of resources. Below is a graphdepicting the production possibility frontier for Canada and the marginal benefit and cost of a bushel ofcorn. Discuss the relationship between the marginal cost and marginal benefit of corn and the production ofboth corn and cattle.(a) Discuss the overallocation of resources, underallocation of resources, and optimal allocation of resources. (b) When operating at the optimal level of corn production, what is the optimal level of cattle production? Whyis this the optimal amount (why not more or less cattle)?
grow cherry tomatoes and catch salmon. The accompanying table shows the maximum annual output combinations oftomatoes and salmon that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for cherry tomato production, there are fewer resources available for catching salmon. CHERRY TOMATOES SALMON 0 1500 500 1400 900 1200 1200 900 1400 500 1500 0 a. Draw a production possibility frontier with cherry tomatoeson the horizontal axis and salmon on the vertical axis illustrating these options, label the points. ( A-F) bi. On your graph put in a point to indicate 500 pounds of salmon and 800 pounds of cherry tomatoes, Label this point ‘G’. Can the economy produce at this point YES or No. Explainwhat the point illustrates.…
Below is the production possibilities table for consumer goods (maize) and capital goods (tractors):Type of productionProduction possibilities A B C D Emaize 30 27 21 12 0Tractors 0 2 4 6 8i. Show these data graphically. ii. If the economy is at point C, what is the cost of one more unit of maize? iii. Suppose improvement occurs in the technology of producing tractors but not in the technology of producing maize. Draw the new production possibilities curve. iv. Now assume that a technological advance occurs in producing maize but not in producing tractors. Draw the new production possibilities curve. v. Now draw a production possibilities curve that reflects technological improvement in the production of both goods.