4. Shifts in production possibilities Suppose Spain produces two types of goods: agricultural and capital. The followjng diagram shows its current production possibilities frontier for alfalfa, an agricultural good, and locomotives, a capital good. show the effects of a breakout of avian flu that sickens millions of workers. Drag the production possibilities frontier (PPF) on the graph 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. 420 350 PPF 280 210 140 70 PPF 40 80 120 160 200 240 ALFALFA (Millions of bushels) LOCOMOTIVES (Thousands)
4. Shifts in production possibilities Suppose Spain produces two types of goods: agricultural and capital. The followjng diagram shows its current production possibilities frontier for alfalfa, an agricultural good, and locomotives, a capital good. show the effects of a breakout of avian flu that sickens millions of workers. Drag the production possibilities frontier (PPF) on the graph 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. 420 350 PPF 280 210 140 70 PPF 40 80 120 160 200 240 ALFALFA (Millions of bushels) LOCOMOTIVES (Thousands)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter2: Thinking Like An Economist
Section: Chapter Questions
Problem 3PA
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In the given diagram, an economy produces two goods i.e. LOCOMOTIVE and ALFALFA. In this, the locomotive is a capital good and alfalfa is an agricultural good. This implies the production of locomotives depends on machinery (capital goods) and the production of alfalfa depends on labor (agriculture goods). The initial production combination is the PPF curve on the above graph.
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