If a Production Possibilities Frontier (PPF) of an economy is a linear curve, what does it means?А.The economy is facing constant opportunity costThe economy is facing decreasing opportunity costC.The economy is facing a dynamic opportunity costD.The economy is facing increasing opportunity costB. Property rights are important to a market economy because:А.It provides a medium of exchange and accepted as a means of paymentВ.It provides an regulations for use, selling and buying of an resourcesC.Property rights are important to a market economy because:D.It provides a mechanism that serve as medium of interaction between buyer and sellers.B.

If a Production Possibilities Frontier (PPF) of an economy is a linear curve, what does it means? А. The economy is facing constant opportunity cost В. The economy is facing decreasing opportunity cost C. The economy is facing a dynamic opportunity cost D. O The economy is facing increasing opportunity cost

If a Production Possibilities Frontier (PPF) of an economy is a linear curve, what does it means? А. The economy is facing constant opportunity cost В. The economy is facing decreasing opportunity cost C. The economy is facing a dynamic opportunity cost D. O The economy is facing increasing opportunity cost

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter3: The Fundamental Economic Problem: Scarcity And Choice

Section: Chapter Questions

Problem 4TY

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1. a. Explain the following in not more than half a page - Opportunity cost. - Production possibility frontier. - scarcity b. Using an appropriate diagram, explain how the production possibility frontier becomes a model of scarcity, choice and opportunity cost. c. Explain the stages of production d. Explain 6 relevance of the stages of production to a business operator.
plase solve all 8 quetions 1. Economics can be defined as the study of how people choose to allocate __________ to satisfy their _____________________. A. Unlimited wants, scarce resources. B. Needs, wants. C. Scarce resources, unlimited wants. D. Wants, needs. 2. ________________ refers to initiative, talent and organisational ability to incorporate and co-ordinate the different factors for profitable and efficient production. A. Capital. B. Entrepreneurship. C. Labour. D. Land. 4. An economic system where tradition and customs determine what, how and for whom to produce is called the ________________________ system. A. Free market. B. Traditional. C. Mixed. D. Command. 6. Which one of the following is not a macroeconomic goal? A. Control inflation. B. Achieve unemployment. C. Promote economic growth. D. Avoid balance of payment difficulties. 7. An economy experiences inflation when __________________________. A. The investments are rising. B. The population is rising. C. The general…
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Direction: Plot the Production Possibilities Frontier of the below-data with good X on the horizontal axis and good Y on the vertical axis. GOOD PRODUCTION ALTERNATIVES A B C D E X 0 15 18 21 24 Y 45 42 37 27 0 Question: Explain the different points on the curve. What does each point represent? Why is it important for an economy to be on its production possibilities frontier?
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