Plz all part solve u Question 8Assume that country X produces two goods-sugar and shoes-and that the country's productionpossibility curve is "bowed-out." As the country produces more sugar the opportunity cost of sugar.in terms of shoes foregone will:O remain unchanged.O increase.decrease.initially increase and then decrease..Question 9A production possibilities curve that is a straight line represents the case ofO constant costs.O constant opportunity costs but decreasing real costs.O constant opportunity costs but increasing real costs.O increasing costs.Question 10If country A is relatively land-abundant and country B is relatively labor-abundant, the Heckscher-Ohlin theory predicts that country A will export textiles (a relatively labor-intensive good) andcountry B will export corn (a relatively land-intensive good).O TrueO False

PPC stands for production possibility curve: PPC is the curve that shows the different combinations…

Question 8 Assume that country X produces two goods-sugar and shoes-and that the country's production possibility curve is "bowed-out." As the country produces more sugar the opportunity cost of sugar in terms of shoes foregone will:

Question 8 Assume that country X produces two goods-sugar and shoes-and that the country's production possibility curve is "bowed-out." As the country produces more sugar the opportunity cost of sugar in terms of shoes foregone will:

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 6P

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give 1 of the following statements that is NOT true regarding the production function and the production possibilities curve?a. Both the production fuunction and the production possibilities curve maximise the amount of output attainable.b. The production function describes the capacity of a single firm, whereas the production possibilities summarises theoutput capacity of the entire economy.c. A production function tells us the maximum amount of output attainable from the use of all resources.d. The production possibilities curve expresses the ability to produce various combinations of goods given the use of allresources
Exhibit 2-10 production possibilities curve data A B C D E Capital Goods 0 1 2 3 4 Consumption goods 25 23 19 13 0 Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must: A) Increase because the production possibility table shows only the maximum efficiency points. B) Increase because of the law of increasing costs. C) Decrease because of the law of increasing costs. D) Decrease because of the finite nature of the resource base.
Suppose the economy initially produces 15,000 gallons of drinking water and 450,000 tons of steel, which is represented by point A. The opportunity cost of producing an additional 5,000 gallons of drinking water (that is, moving production to point B) is (72,000, 135,000, 90,000, 54,000, 108,000) tons of steelSuppose, instead, that the economy currently produces 378,000 tons of steel and 20,000 gallons of drinking water, which is represented by point B. Now the opportunity cost of producing an additional 5,000 gallons of drinking water (that is, moving to point C) is (72,000, 135,000, 90,000, 54,000, 108,000) ons of steel.Comparing your answers in the two previous paragraphs, you can see that the opportunity cost of 5,000 additional gallons of drinking water at point B is (Less, Equal, Or Greater Than) the opportunity cost of 5,000 additional gallons of drinking water at point A. This reflects the (Notion that Countries can gain from trade, Law of Increasing Opportunity Costs, Fact…
Below is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts): a. Show these data graphically. Upon what specifific assumptions is this production possibilities curve based?b. If the economy is at point C, what is the cost of one more automobile? Of one more forklift? Explain how the production possibilities curve reflfl ects the law of increasing opportunity costs.c. If the economy characterized by this production possibilities table and curve were producing 3 automobiles and 20 fork lifts, what could you conclude about its use of its available resources?d. What would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a level of production?
A production possibilities curve is drawn basedon which of the following assumptions?a. Resources are fixed and fully employed, andtechnology advances at the rate of growth ofthe economy overall.b. Resources such as nonrenewable resourceswill decline, but labor remains fullyemployed and technology is unchanged.c. Resources can vary; most resourcesexperience times of unemployment; andtechnology advances, particularly duringwartime.d. Resources such as labor and capital will growand are fully employed, and technology isunchanged.e. None of the answers correct.
The following is a production possibilities table for war goods and civilian goods: Production alternatives A B C D E Automobiles 0 2 4 6 8 (in millions) Guided missiles 30 27 21 12 0 (in thousands) •Show these production possibilities data graphically. •What does points on the curve indicate? •If the economy is currently at point C, what is the cost of 1 million more automobiles? Of more guided missiles? •Suppose improvement occurs in the technology of producing guided missiles but not in the production of automobiles. Draw the new production possibilities curve
Below is a table of production possibilities for a company that produces soft drink bottles and juice bottles (in thousands of units per week): Production alternatives production type A B C D E F Set of 8 soft drink bottles 0 4 10 15 19 22 12 juice box 58 56 48 32 16 0 Plot this data on a graph. What specific assumptions are represented by this production possibilities curve? If a firm is at point C, what is the opportunity cost of an additional set of soft drinks? From an extra juice box? If the company characterized in this table produced 7 sets of 8 bottles of soda and 40 cases of 12 juices, what could be concluded about the use of available resources? Is production currently possible at a point outside the production possibilities curve? Explain your answer.
A consumer have budget amounting to $400 which he could spend on two goods such as ice cream at $25 and a slice of bread at $40. Assuming that the ice cream will be located aling the vertical axis, and bread slice along the horizontal axis, what is the opportunity cost of bread in terms of the ice cream? (How many units of ice cream will be given up to gain a slice of bread?) Answer in absolute value.
Evidence accumulates that the use of fertilizers, which increases agricultural production greatly, damages water quality. Explain in words how you would draw a production possibility curve to depict this (i.e. which good should be placed on each axis) and why your curve would have a particular shape.
Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce. What is the maximum quantity of guns that can be produced? What is the maximum quantity of butter than can be produced? Draw the nation's production possibility curve. (Photo's are note accepted) What is the opportunity cost of guns in this nation? Explain why the nation can't produce both 3 guns and 4 butters. Explain why the nation shouldn't produce both 1 gun and 2 butters.
A production possibilities table for two products, Consumption goods and Capital goods, is found below. Usual assumptions regarding production possibilities are implied. Consumption goods are measured in tons, and Capital goods are measured per unit. Combination Consumption goods Capital goods A 0 6 B 18 5 C 33 4 D 45 3 E 54 2 F 60 1 G 63 0 1. Sketch a production possibilities curve from the above information. 2. Using the information given in the above schedule, describe the concept of increasing opportunity cost. 3. Suppose the economy is producing at a point inside the PPC. Give at least two reasons why this could occur. What could be done to move the economy to a point on the PPC? 4. “As compared to production combination F, the economy would experience higher growth rates in the future if production combination B is currently chosen.” Comment this statement. 5. Given the…
Based on the given scenario, answer all the questions. Consider a world composed of two countries, U.S as Home and Malaysia as Foreign. U.S and Malaysia both are producing two goods for machines and pants. Assume that Malaysia is capital abundant and machines are capital intensive. a) What is(are) the factor of production that used in the production? b) With a help of a diagram, explain how the change in the relative price of goods alter the distribution of income [Hints, normally use relative price of goods for capital abundant or labor intensive]. c) With a help of a diagram, explain how levels of output change when the economy’s resources change [Hints, normally use relative price of goods for capital abundant or labor intensive].