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Illustrate and explain with diagram of a production possibility curve, the following; - Opportunity cost - Unattainable output level - Underutilization of resource

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 19CTQ: Look at Exercise 33.2. Compute the opportunity costs of producing sweaters and wine in both France...

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Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.

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Illustrate and explain with diagram of a production possibility curve, the following;

- Opportunity cost

- Unattainable output level

- Underutilization of resources

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Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil and tons of lumber the workers can produce. Use these numbers to answer the rest of this question. Draw a production possibilities frontier for each country. Assume there are 100 workers in each country. Canadians and Venezuelans desire both oil and lumber. Canadians want at least 2,000 tons of lumber. Mark a point on their production possibilities where they can get at least 3,000 tons. Assume that the Canadians specialize completely because they figured out they have a comparative advantage in lumber. They are willing to give up 1,000 tons of lumber. How much oil should they ask for in return for this lumber to be as well off as they were with no trade? How much should they ask for if they want to gain from trading with Venezuela? Note: We can think of this ask as the relative price or trade price of lumber. Is the Canadian ask you identified in (b) also beneficial for Venezuelans? Use the production possibilities frontier graph for Venezuela to show that Venezuelans can gain from trade.
Illustrate and explain with a diagram of a production possibility curve, the following;- Opportunity cost- Unattainable output level- Underutilization of resources with APA format(references) words count:400-550
20. Australia and New Zealand both produce wool and wine. Australia can either produce 200 litres of wine or40 tonnes of wool per week. New Zealand can either produce 40 litres of wine or 10 tonnes of wool per week.Australia’s opportunity cost of producing 1 ton of wool is equal to: (4 marks)A 200 litres of wine.B 50 litres of wine.C 40 litres of wine.D 5 litres of wine.
15) Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost of moving to point B? 15) ______
1. Which of the following is NOT a normative statement? Select one: a. higher interest rates should lead to increased savings b. inflation is more harmful to Ghana than unemployment c. if its minimum wage falls, Japan will be a better place d. the benefits to the economy of improved equity are less than the costs of reduced efficiency 2. Which of the following is not necessarily an outcome of international trade? Select one: a. goods being obtained at lower opportunity cost b. people specialize in activities in which they have a comparative advantage c. all individuals within trading countries benefit d. more efficient resource use 3. If a 8 percent increase in income results in a 10 percent increase in the quantity demanded of lattes, what is the income elasticity of demand for lattes, and what type of good is lattes? Select one: a. negative, and therefore lattes are a normal good b. negative, and therefore lattes are an inferior good c. positive, and therefore lattes…
16. Oman is using capital - intensive methods of production. This statement is related to _____. a. How to produce these goods? b. What goods to produce? c. Where to produce? d. For whom to produce?
4. The shift of the production possibilities frontier from A to B in the figure above illustrates a. simultaneous technological advances in the battery and bagel industries. b. a reallocation of resources away from the production of bagels and toward the production of batteries. c. economic growth. d. All of the above are correct.
34. To obtain good A in which one does not have a comparative advantage, it is better to acquire it by "indirect production" – producing good B, in which one does have a comparative advantage, and trading it for good A. True False False
Question 7 A Production Possibilities Frontier shows Group of answer choices all the combinations of two goods or services a person/country wants to consume. all the combinations of how much of two goods a person/country can produce when they trade. the tradeoff between how much the person/country likes two goods or services. all the combinations of two goods a person/country is able to produce with the resources it has.
Question 3.3. Which situation would most likely cause a nation's production possibilities curve to shift inward? The construction of more capital goods An increase in discrimination based on race An increase in the number of skilled immigrant workers The destruction from bombing and warfare in a losing military conflict
Question 1Assume that during the years 2022 to 2025 Woodland Republic could produce only two commodities: tractors and rice. Also, assume that Woodland Republic can procuce at any of the positions represented by the production possibility schedule below. ABCDEFGH Tractors 02479111314 Rice (in tons)1009585706050300 Suppose in 2022 the economy is producing at point D. What is the opportunity cost of producing 6 more tractors in 2023
7) An inefficient use of resources may be illustrated with a production possibility curve as: A) an inward shift of the production possibility curve. B) an outward shift of the production possibility curve. C) a point inside the production possibility curve. D) a point outside the production possibility curve.