During World War II, auto production was cut drastically. The resources available could be used to produce Jeeps or passenger cars. The resources could be used in the following ways. Number of Jeeps (1000’s) Number of Cars (1000’s) A. 0 500 B. 125 375 C. 250 250 D. 375 125 E. 500 0 a). Graph the above information on a PPF b). Why could you not increase the production of cars without decreasing the production of jeeps? c) What is the opportunity cost of moving from point B to D? f)What is the opportunity cost of moving from E to B?

During World War II, auto production was cut drastically. The resources available could be used to produce Jeeps or passenger cars. The resources could be used in the following ways. Number of Jeeps (1000’s) Number of Cars (1000’s) A. 0 500 B. 125 375 C. 250 250 D. 375 125 E. 500 0 a). Graph the above information on a PPF b). Why could you not increase the production of cars without decreasing the production of jeeps? c) What is the opportunity cost of moving from point B to D? f)What is the opportunity cost of moving from E to B?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 9SQP

See similar textbooks

Similar questions

Meanwhile, in the country of Portugal, wool and wine can also be produced according to a linear PPF. However, when all resources are devoted to production of wine, Portugal can produce 100 barrels, but when all resources are devoted to wool production, portugal can produce 50 bushels. What are the opportunity costs in Portugal of producing a barrel of wine?
Meanwhile, in the country of Portugal, wool and wine can also be produced according to a linear PPF. However, when all resources are devoted to production of wine, Portugal can produce 100 barrels, but when all resources are devoted to wool production, Portugal can produce 50 bushels What are the opportunity costs in Portugal of producing a bushel of wool?
Explain how the relative PPP differs from the absolute PPP. Can the Relative PPP hold true while, at the same time, the absolute PPP fails to hold? Justify
Ruritania produces Widgets and Gizmos. If all of its factors of production are committed to making widgets exclusively, it can make 8 million units each year. If all of its factors are committed to making Gizmos exclusively, it can make 8 million units per year. Ruritania's Ministry of Growth has considered various plans to stimulate economic growth in the kingdom. Adjust the production possibilities frontier (PPF) on the graph to show the impact of a successful plan to improve the literacy rate. (Look at image)
Draw a marker diagram showing how the equilibrium point changes if the production technology improves all else equal
An economy consists of three workers: Gilberto, Lorenzo, and Sam. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Gilberto can either mow 2 lawns or wash 1 car; Lorenzo can either mow 1 lawn or wash 1 car; and Sam can either mow 1 lawn or wash 2 cars. For each of the scenarios listed in the following table, determine how many lawns will be mowed and how many cars will be washed per day and enter these values into the corresponding row. Scenario Lawns Mowed Cars Washed All three spend all their time mowing lawns. (A) All three spend all their time washing cars. (B) All three spend half their time on each activity. (C) Gilberto spends half his time on each activity, while Lorenzo only washes cars and Sam only mows lawns. (D) In the following table, identify the opportunity cost of washing cars for each worker. Worker Opportunity Cost of Washing Cars Gilberto…
BD and India are both producers of garments and rice. Garments require labor and capital, while rice requires labor and land. Assume that labor is mobile between sectors, but not between countries. Given the relative opportunity costs of garments and rice in each country, India exports rice to BD and Imports garments from BD. Suppose the amount of land available for rice cultivation in India grows. How will it affect India's PPF? What will be the impact of this development on Indian labor, Indian landowners and Indian garment factory owners? Use diagrams to explain if necessary.
Let's say PPF in the diagram to the right is for the year 2022 — How can we shift out the frontier for 2023 to be able to produce more of both goods? Question 11 options: A) Increase the amount of land, labor, capital and entrepreneurship we have — the factors of production B) Increase the amount of technology we have — new inventions and innovations C) Both of the above will help.
The blue (inner) curve on the following graph shows the current production possibilities frontier (PPF) for the economy of Wilshire, and the green (outer) curve shows the PPF for Wilshire next year if the economy were to operate at point B today. That is, investment choices today impact the growth of the economy, and thus the PPF for next year. Suppose that this year, the economy is operating at point B, but then an earthquake destroys more capital than is being produced during the year. On the following graph, the PPF that best describes the Wilshire economy next year is ________ (options: PPF1, PPF2, PPF3). PPF1 is orange line PPF2 is purple line PPF3 is tan line.
Covid -19 increases the number of unemployed workers in nation. What happens to the PPF curve? Also, from the list provided, please choose an explanation as to why you chose your previous answer. What happens to the PPF? Explain. Choose: PPF shifts outwards Produce inside PPF Produce outside PPF Increased production given resources Increase in resources PPF shifts inwards Unused Resources
The data below shows the various production possibilities for an economy that produces two goods, cars, and television sets. Combination Cars Television A 1000 0 B 800 400 C 600 800 D 400 1200 E 200 1600 F 0 2000 Draw the ppf , put cars on the vertical axis and televisions on the horizontal axis. Use the letters P to label an attainable point. Use the letter T to label an unattainable point. Use the letter S to show an attainable and inefficient point List 3 assumptions on which the PPF is drawn. What is the opportunity cost of television production if we moved from combination E to D? On a new diagram illustrate how a decline in the quality of the labour force would impact the PPFfor car and television production. The output per worker increased resulting in more television sets being produced. Use the diagram in part a to illustrate this. How does your diagram illustrate i) choice ii) scarcity If all…
Consider a simple economy whose only industry is printing. In this industry, productivity—the amount of goods and services a worker can produce per hour—is measured by the number of documents one worker prints per hour. In the following table, match each example to the productivity determinant it represents. Examples Human Capital per Worker Natural Resources per Worker Physical Capital per Worker Technological Knowledge The knowledge workers receive from training sessions on how to use and repair the printing presses The presses used to print documents The trees that are used to create pulp for the production of paper A way of organizing workers among the printing presses that speeds up the printing process