If an economy is producing efficiently, then ) there is no way to produce more of one good without producing less of another good. O it is possible to produce more of both goods without increasing the quantities of inputs that are being used. it is possible to produce more of one good without producing less of another good. ) it is not possible to produce more of any good at any cost.

If an economy is producing efficiently, then ) there is no way to produce more of one good without producing less of another good. O it is possible to produce more of both goods without increasing the quantities of inputs that are being used. it is possible to produce more of one good without producing less of another good. ) it is not possible to produce more of any good at any cost.

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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If it is not possible to increase the output of one good without decreasing the output of the other, when there are only two goods, thenthis situation would describe a point on a production possibilities frontier for the producer.the outcome can be described as efficient.there is no unemployment of resources.All of these outcomes are correct.
Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor: A: Which country is capital abundant and which one is labor abundant? Explain! Now suppose the production one unit of good X requires 3 units of capital and 2 units of labor and the production of one unit of good Y requires 6 units of capital and 3 units of labor. B: Which good is the capital intensive good and which one is the labor intensive good? Explain!! C: Which country should specialize in and export good X and which country should specialize in and export good Y. Explain!!! D: Using appropriate graphs, demonstrate that trade is beneficial if two countries have identical technology but different preferences. Does a country specialize in producing the good where they have the strongest preference? Explain DO D Foe answers for A, B and C -…
Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor: A: Which country is capital abundant and which one is labor abundant? Explain! Now suppose the production one unit of good X requires 3 units of capital and 2 units of labor and the production of one unit of good Y requires 6 units of capital and 3 units of labor. B: Which good is the capital intensive good and which one is the labor intensive good? Explain!! C: Which country should specialize in and export good X and which country should specialize in and export good Y. Explain!!! D: Using appropriate graphs, demonstrate that trade is beneficial if two countries have identical technology but different preferences. Does a country specialize in producing the good where they have the strongest preference? Explain
Supposeg1increases, but stillc1+b1+g1<1. Using a graph of the goods market, show how we would represent an increase in the value ofg1on equilibrium output y. Be sure to label all axes, curves, and equilibrium points. Suppose instead,c1+b1+g1= 0. Is the equilibrium in the goods market still possible? If so, what is the equilibrium output? You must explain your answer to receive full credit.
If we assume that a cafe owner wants to increase the number of people she can serve lunch to and is considering whether to put in more tables or hire another server. Which two resources is the owner considering as substitutes in production? (A) Labor and land (B) Labor and entrepreneurial ability (C) Labor and capital (D) Capital and entrepreneurial ability (E) Capital and land
Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
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?
Which one is false? Explain why that is false. 1. The production possibilities curve is a simple device for summarizing the possible combinations of output that a society can produce if it employs its resources efficiently. 2. One person has a comparative advantage over another in the production of a good if she or he can produce more of that good than the other person. 3. The Cost-Benefit Principle says that a person should take an action if, and only if, the benefit of that action is at least as great as its cost. 4. Market equilibrium occurs when the quantity buyers demand at the market price is exactly the same as the quantity that sellers offer. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure
person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted to good B yeilds 2units . whereas each hour devoted to good A produces 4 units. state whether 9 units of good B and 12 units of good A are unattainable, efficient, or inefficient.(state all that applies) select one or more attainable inefficient efficient unattainable
An economy produces two goods ,X and Y .lt uses two means of production, labour and capital. A unit of labour can produce either 1unit of X or 4units of Y (or linear combination of the two).A unit of capital can produce either 4units of X or 1unit of Y (or linear combination of the two)there are 100units of each means of production. (i) Draw the production possibility frontier of the economy when the two goods can only be produced by a mixture of both factors. (ii)What will be the opportunity cost of X if the economy produces 50units of X ? (iii) Given that the production technology is linear ,will the opportunity cost of X remain unchanged when we produce 90units of X ? (iv)Briefly explain the difference between the PPC with a constant opportunity cost and the PPC with an increasing opportunity cost as more output of one good is produced. Use a well labeled diagram to explain your answer?
Consider an economy that produces only two goods: Food and Clothing. The use of the resources of this economy produces monthly according to the table below: Alternative Clothes Foods A 0 9 B 3 7 C 5 4 D 6 two D 7 0 Ask if: a) Graph the production possibility curve of this economy b) Considering the same factor endowment in this economy, how would it be possible to increase the production of goods? c) Comment on the fact that this economy is actually producing 3 units of clothing and 5 of food d) Indicate the opportunity cost of situations A and C
1. what will a decrease in input prices as well as a simultaneous decrease in price of good that is substitutable in consumption lead to? 2. A tax placed on buyers of airline tickets will __________ the price received by sellers of airline tickets and causes the quantity of airline tickets to _____________. 3. If your tuition is $5000 this semester, your books cost $600, you only work 20 rather than 40 hrs per week during the 15 weeks you are taking classes and make $15 per hr, and your room and board is $3000 this semester, then what is your opportunity cost of attending college this semester?