magine a country XYZ that produces only two goods—chairs and tables. Together, the chairs and tables industries use all of the economy’s factors of production. The table below shows the production possibilities for XYZ: Production Possibilities for XYZ Chairs Tables 600 0 450 150 300 250 150 325 0 375 use the slope (rise/run) to solve it and describe what happen A. What is the opportunity cost of increasing tables production from 250 tables to 325 tables?

magine a country XYZ that produces only two goods—chairs and tables. Together, the chairs and tables industries use all of the economy’s factors of production. The table below shows the production possibilities for XYZ: Production Possibilities for XYZ Chairs Tables 600 0 450 150 300 250 150 325 0 375 use the slope (rise/run) to solve it and describe what happen A. What is the opportunity cost of increasing tables production from 250 tables to 325 tables?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 13P

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please solve d and e Imagine a country XYZ that produces only two goods—chairs and tables. Together, the chairs and tablesindustries use all of the economy’s factors of production. The table below shows the productionpossibilities for XYZ:Production Possibilities for XYZChairs Tables600 0450 150300 250150 325 0 375a. Draw a Production Possibility Frontier for the country using the information in tableabove. b. What is the opportunity cost of increasing chairs production from 450 chairs to 600chairs?c. What is the opportunity cost of increasing tables production from 250 tables to 325tables?d. Plot the point denoting 300 chairs and 300 tables on your graph above. Is this point“feasible”? Why or why not?e. Plot the point denoting 300 chairs and 50 tables on your graph above. Should XYZ beproducing at this point? Why or why not?
Imagine a country XYZ that produces only two goods—chairs and tables. Together, the chairs and tablesindustries use all of the economy’s factors of production. The table below shows the productionpossibilities for XYZ:Production Possibilities for XYZChairs Tables600 0450 150300 250150 325 0 375a. Draw a Production Possibility Frontier for the country using the information in tableabove. b. What is the opportunity cost of increasing chairs production from 450 chairs to 600chairs?c. What is the opportunity cost of increasing tables production from 250 tables to 325tables?d. Plot the point denoting 300 chairs and 300 tables on your graph above. Is this point“feasible”? Why or why not?e. Plot the point denoting 300 chairs and 50 tables on your graph above. Should XYZ beproducing at this point? Why or why not?
Review the numbers for Canada and Venezuelafrom Table 33.12 which describes how many barrelsof oil and tons of lumber the workers can produce. Usethese numbers to answer the rest of this question.a. Draw a production possibilities frontier for eachcountry. Assume there are 100 workers in eachcountry. Canadians and Venezuelans desire bothoil and lumber. Canadians want at least 2,000tons of lumber. Mark a point on their productionpossibilities where they can get at least 3,000tons.b. Assume that the Canadians specializecompletely because they figured out they havea comparative advantage in lumber. They arewilling to give up 1,000 tons of lumber. Howmuch oil should they ask for in return for thislumber to be as well off as they were with notrade? How much should they ask for if theywant to gain from trading with Venezuela? Note:We can think of this “ask” as the relative price ortrade price of lumber.c. Is the Canadian “ask” you identified in (b) alsobeneficial for Venezuelans? Use the…
Suppose the administration of a University that is located a high-crime urban area mustdecide on a policy to increase policing on its campus. The student population is 10,500 students but iscould increase if crime is reduced. The cost of added policing in terms of additional salary and equipmentis estimated to be $2.4 million per year. Suppose the administration plans to make their decision with thehelp of a benefit cost analysis of the policy. VSL is $11.8 million a. Explain how the concept of Value of a Statistical Life might factor into a benefit cost analysis of thispolicy. b. How many lives would need to be save to justify the added policing costs if only prevented deathswere considered as the policy benefit? c. Suppose it is believed that student enrollment will increase in the future if crime on campus is reduced.Write a formula to calculate the present value of benefits of policing if student enrollment increases by4% each year.
Suppose you have $1000 to spend on shirts and sweaters. the price of a shirt is $35 and the price of the sweater is $5 a) The opportunity cost of buying one shirt is ......... sweaters b) The opprotunity cost of buing one sweater is......shirts
It’s Friday night. You already have a ticket to aconcert, which cost you $30. A friend invites youto go out for a game of paintball instead. Admission would cost you $25, and you think you’d get$25 worth of enjoyment out of it. Your concertticket is nonrefundable. What is your opportunitycost (in dollars) of playing paintball?
What is the impact of the pandemic covid 19 in our economy? With example
Table 1:Production AlternativeTypes of Prod PRODUCTION ALTERNATIVES Types of Production A B C D E CEREAL 0 250 450 650 850 BREAD 130 117 109 89 0 Using the Table 1 abovea. Draw a production possibilities curve for cereal and bread using the data above. b. Label the points where the economy would be efficient (A), underutilized (B) and unattainable (C).
PRICE 1 2 3 4 5 QUANTITY 0 3 4 5 6 (d) What happens if other determinants change?
Orange(tons) Apple(tons)A 1400 0B 1100 450C 900 900D 600 1200E 250 1600F 0 2000a. Plot the production possibilities curve for the production of orange and apple. Put orange on the horizontal axis. b. What is the opportunity cost of increasing the production of orange from 0 to 250? From 900 to 1100? c. Given this production possibilities curve, is producing 900 orange and 1200 apple possible? d. Is producing 250 orange and 1200 apple? Is it efficient? 2) What is the connection between elasticity and total revenue? 3) State whether each of the following events will result in a movement along the demand curve for Burger King’s Cheeseburger or whether it will cause the curve to shift. If the demand curve shifts, indicate whether it will shift to the left or the right and draw a graph to illustrate the shift.Explaina) The price of McDonald’s Big Mac hamburger decreases.b) Because of a shortage of…
Give 2 examples of GATT.
a) John has three options for investing his money (let's assume he doesn't worry about risk): a) put it into the stock market and earn a net income after taxes of $600; b) save the money in a savings account and earn a net income after taxes of $40; or c) buy government bonds and earn a net income after taxes of $320. The opportunity cost of buying stocks is 600 320 40 280 360 b) There are 100 identical people in the market. Each person has a demand function of D: P = 100 - Q The market price is $10. The total market quantity demanded is therefore 90 10 10000 9000 c) When assessing the welfare effects of taxes, we can conclude that O They are always welfare decreasing O They are always welfare increasing, because they allow the government to provide essential goods O They are usually welfare decreasing in the market in which they are raised, but for society as a whole it depends on how they are used O They are welfare neutral, because whatever is lost by producers and consumers…