Draw another diagram putting on it the original productionpossibility frontier you drew for (a), labelling it AA.(i) Draw a new production possibility frontier on the diagram,labelling it PP, which shows the position after a devastatingwar has hit the economy.(ii) Draw another PPF labelling it QQ which shows an increasein productivity in the econory such that output from thesame amount of resources increases by 50 per cent in thepublic sector but twice that amount in the private sector.already finished part A need help with part B thanks! Question 2Draw a production possibility frontier. The vertical axis shows theproduction of public sector goods and the horizontal axis showsproduction of private sector goods. The economy is currentlyproducing at point A on the frontier where 50 per cent of allproduction is devoted to public sector goods and 50 per cent toprivate sector goods.(a) Mark the following points on your drawing.(i) Point A.(ii) Point B which shows production following the election of agovemment which increases government spending on botheducation and the National Health Service.(iii) Point C where unemployment is present in the economy.(iv) Point D where the government takes over production of allgoods and services in the economy.(b) Draw another diagram putting on it the original productionpossibility frontier you drew for (a), labelling it AA.(i) Draw a new production possibility frontier on the diagram,labelling it PP, which shows the position after a devastatingwar has hit the economy.(ii) Draw another PPF labelling it QQ which shows an increasein productivity in the economy such that output from thesame amount of resources increases by 50 per cent in thepublic sector but twice that amount in the private sector.сtitrErEit

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Answered: Question Z Draw a production…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 6PA

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Draw another diagram putting on it the original production possibility frontier you drew for (a), labelling it AA. (i) Draw a new production possibility frontier on the diagram, labelling it PP, which shows the position after a devastating war has hit the economy. (ii) Draw another PPF labelling it QQ which shows an increase in productivity in the econory such that output from the same amount of resources increases by 50 per cent in the public sector but twice that amount in the private sector. already finished part A need help with part B thanks!

Question 2
Draw a production possibility frontier. The vertical axis shows the
production of public sector goods and the horizontal axis shows
production of private sector goods. The economy is currently
producing at point A on the frontier where 50 per cent of all
production is devoted to public sector goods and 50 per cent to
private sector goods.
(a) Mark the following points on your drawing.
(i) Point A.
(ii) Point B which shows production following the election of a
govemment which increases government spending on both
education and the National Health Service.
(iii) Point C where unemployment is present in the economy.
(iv) Point D where the government takes over production of all
goods and services in the economy.
(b) Draw another diagram putting on it the original production
possibility frontier you drew for (a), labelling it AA.
(i) Draw a new production possibility frontier on the diagram,
labelling it PP, which shows the position after a devastating
war has hit the economy.
(ii) Draw another PPF labelling it QQ which shows an increase
in productivity in the economy such that output from the
same amount of resources increases by 50 per cent in the
public sector but twice that amount in the private sector.
с
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