Ice cream (millions of gallons per year) 4 3 24 3 4 Milk (millions of gallons per year) The figure above shows the production possibilities frontier for a country. A combination of 4 million gallons of milk and4 million gallons of ice cream is attainable and production efficient. unattainable and production efficient. O unattainable attainable and production inefficient. More information is needed to determine if the point is attainable or not.

Ice cream (millions of gallons per year) 4 3 24 3 4 Milk (millions of gallons per year) The figure above shows the production possibilities frontier for a country. A combination of 4 million gallons of milk and4 million gallons of ice cream is attainable and production efficient. unattainable and production efficient. O unattainable attainable and production inefficient. More information is needed to determine if the point is attainable or not.

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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What does a production possibilities frontier illustrate?
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?
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Assume an economy producing only two goods (shoes and computers) with a fixed amount of productive resources and technology and employing all its productive resources to the maximum. The maximum output combinations of both goods are given in the table below: Combination Shoes Computers Shoes Computers A 0 1000 B 100 900 C 200 750 D 300 550 E 400 300 F 500 0 iv. How many computers could society produce if it was willing to do without shoes? v. Why are points outside the frontier unattainable? vi. Identify three ways by which the economy can attain the level of production outside the PPF. vii. What happens to the PPF when technological change overwhelmingly favours the production…
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Table 1: Production Capacity of COVID-FREE LAND.Toilet Rolls Sanitizers30,000 028,000 1,00024,000 2,00018,000 3,00010,000 4,0000 5,000Use information in Table 1 above to answer the following questions: In your own words, while making use of the graph that you have created in part a, explain what the PPF is. Cleary state all assumptionsand properties of the PPF.