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. Why shouldn't the nation produce 1 gun and 2 butters?

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. Why shouldn't the nation produce 1 gun and 2 butters?

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 18SQ

See similar textbooks

Related questions

Q: Explain why the slope of the production possibilities curve becomes steeper as we move along the…

A: The production possibility curve (PPC) refers to a graphical representation of various combinations…

Q: Consider two neighboring island countries called Contente and Felicidad. They each have 4 million…

A: Initially, we need to go through the opportunity cost of the countries producing the corns and the…

Q: Ginny and Lucia are roommates. They spend most of their time studying (of course), but they leave…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Which of the following are made constant when applying the production possibilities curve theory?…

A: A production possibility curve reflects the various combination of two goods that can be produced in…

Q: IA nation with fixed quantities of resources is able to produce any of the following combinations of…

A: The production possibility curve shows the combination of goods produced in a country using all the…

Q: The production possibilities curve represents the maximum combination of goos and services that can…

A: In business analysis, the production possibility curve (PPC) represents the possible quantities…

Q: Suppose Argentina produces only two goods: corn and DVDS. The following graph shows Argentina's…

A: Points located inside the PPF ie A and F represent inefficient output combination. At these points,…

Q: Consider two countries that use labor as an input to produce two goods. • In South Korea, one hour…

A: The process of specialization is when a business or person decides to concentrate their efforts on a…

Q: Consider two neighboring island countries called Bellissima and Felicidad. They each have 4 million…

A: Given information: There are two countries, i.e., Bellissima and Felicidad. And both produces two…

Q: If a country chose to produce twice as many wooden chairs as before, how would that affect its…

A: Law of increasing cost implies that if a producer increases the production of one good, then he…

Q: In 2018, sizeable lithium deposits were discovered in Germany. Suppose that prior to the discovery…

A: The discovery of new lithium deposits in Germany or any rise in technology / resources will shift…

Q: Assuming England has 60 man-hours (mhrs) of labor resource available for production, and labor is…

A: Opportunity cost is the benefit that is derived from the not chosen alternative.

Q: According to Adam Smith, the butcher, the baker, and the brewer do what they do because of…

A: Adam Smith economic theory: Adam Smith is a philosopher who has given a theory that market tends to…

Q: Assume China has 10,000 workers. Suppose that each Chinese worker produces either 30 pairs of boots…

A: Answer: Given, Total number of workers=10,000 Production of boots by each worker= 30 pairs per month…

Q: Q1. Let suppose in the world there is two country, Country X and Country Y. In country X there is…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Consider two neighboring island countries called Dolorium and Bellissima. They each have 4 million…

A: Concept Suppose there are two countries, i.e., A and B And both are producing two goods, i.e., X and…

Q: Assume that quantities do not need to be integers. That is, it is feasible for Andreas to knit 37.25…

A: Given: Feasible for Andreas is to knit 37.25 pairs of mittens. Mittens per hour Scarves per…

Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…

A: Opportunity cost refers to the loss incurred by giving up next best alternative while making a…

Q: Consider a society consisting only of Helen, who allocates her time between sewing dresses and…

A: After sewing machine is introduced, total [32 x (8/4)] = 64 dresses can be produced in 8 hours.

Q: a. For each type of worker, calculate their opportunity cost of producing a bookshelf (in terms of…

A: Opportunity cost(OC) of a product is the amount of another product that is forgone to produce the…

Q: An improvement in a country's legal system that enhanced the ability of citizens to protect their…

A: An improvement in a country's legal system that enhanced the ability of citizens to protect their…

Q: Assuming Portugal has 180 man-hours (mhrs) of labor resource available for production, and labor is…

A: Opportunity cost is the benefit that is derived from the not chosen alternative.

Q: What do you mean by the production possibilities of an economy

A: Production possibilities of an economy refer to different combinations of goods and services which…

Q: Economy A produces more capital goods and fewer consumers goods than economy B. Which economy will…

A: Production Possibility Frontier It is the graphical portrayal of the production of two products in…

Q: Consider two neighboring island countries called Contente and Felicidad. They each have 4 million…

A: Given, Total labor hours= 4 million hour 1. The opportunity cost shows the amount of one sacrifice…

Q: The productive capability of an economy is such that to produce 5 units of military good it takes 2…

A: Note: Since, you've posted question with multiple sub-parts, we will solve the first the first three…

Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…

A: Comparative advantage basically refers to an economy's ability to produce a certain item or service…

Q: Suppose that in the UK 15 million cars could be produced with the same resources as 13 million…

A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…

Q: Refer to Figure 2-9, Panel (a). Production is a. possible at points J, K, L, and M, but efficient…

A: The production possibilities curve is a graphical measure that reflects all of the different…

Q: economy is based on using resources. We sell resources and use resources to manufacture and…

A: We use natural assets to run organizations and in our regular daily existences. Is this useful for…

Q: Sam can brew 5 gallons of root beer in an hour or he can make 4 pizzas in an hour. Ben can brew 7…

A: The opportunity cost is the revenue of the next best alternative that is foregone while making the…

Q: If a country (say the UK) has 900 units of labour available, can produce two goods (cars and PCs)…

A: Opportunity cost is defined as the foregone benefit that would have been derived from an option not…

Q: Assuming Portugal has 180 man-hours (mhrs) of labor resource available for production, and labor is…

A: Opportunity cost is the benefit that is derived from the not chosen alternative.

Q: LaTonya can make 4 cakes or 10 pies in one day working at the bakery. Tom can make, 8 cakes or 33…

A: Opportunity cost refers to the economic measure that is used to determine or compute the trade-off…

Q: Q1. Let suppose in the world there is two country, Country X and Country Y. In country X there is…

A: Comparative advantage means a country export the goods in which it is specialized and a country…

Q: he law of one price says that the price of... a. Labour, measured in terms of its opportunity…

A: Law of one price states that price of identical product or good would be same across the market if…

Q: Which graph depicts a technological breakthrough in the production of Y only

Q: Suppose that there are 10 million workers in Canada and that each of these workers can produce…

A: Opportunity Cost is the cost of foregone alternative. Opportunity Cost = What one Sacrifices / What…

Q: The table below shows various combinations of amounts of fish and corn that can be produced…

A: An opportunity cost can be understood as the loss of the second-best alternative in order to select…

Q: Consider two neighboring island countries called Bellissima and Felicidad. They each have 4 million…

A: We can calculate the opportunity cost of B and F for their production of 1 bushel of corn using the…

Q: Let suppose in the world there is two country, Country X and Country Y. In country X there is only…

A: Note: Since, you've posted question with multiple sub-parts, we will solve the first the first three…

Q: “If resources were unlimited and were freely available, there would be no subject called…

A: From this statement we suggest that If resources were unlimited and freely offered, creating…

Q: England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50…

A: The engagement of a nation in a more open international trade increase the well-being of a nation in…

Q: Andrew and Beth can each spend 10 hours a day making bread or making shoes. Andrew makes 2 shoes an…

A: Andrew and Beth can each spend 10 hours a day making bread or making shoes. Andrew makes 2 shoes an…

Q: A nation’s residents can allocate their scarce resources either to producing consumption goods or to…

A: Scarce Resources: Scarcity of resources occurs when the resources or means available to accomplish a…

Concept explainers

Production Possibility Analysis

The production possibility analysis comprises the production possibility frontier (PPF), or the production possibility curve (PPC) to evaluate a society or even an economy. The production possibility curve represents the cost that the society has to incur for choosing between two different commodities. It is assumed that an economy that operates at the highest production possibility curve is known to have a better standard of living which the society can achieve for producing the optimum level of output which it can produce given a specified number of factors of production or inputs or resources.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

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. 1. Why can't the nation produce both 3 guns and 4 butters? 2. Why can't the nation produce both 1 gun and 2 butters? 3. What is the opportunity cost of guns in this nation?
Assume China has 10,000 workers. Suppose that each Chinese worker produces either 30 pairs of boots or 10 software per month. Suppose that half of Chinese workers produce boots and half produce programs. What quantities of boots and software does China produce? Are these production combinations efficient?
Nation alpha can produce either 3 units of good X or 1 unit of good Y with 1 hour of labour whereas nation beta can produce either 4 units of good X or 2 units of good Y with one hour of labor . Assuming that labor is the only input then ?
Suppose that initially Denali uses 1 million hours of labor per week to produce pistachios and 3 million hours per week to produce chinos, while Sequoia uses 3 million hours of labor per week to produce pistachios and 1 million hours per week to produce chinos. As a result, Sequoia produces 24 million pounds of pistachios and 32 million pairs of chinos, and Denali produces 12 million pounds of pistachios and 72 million pairs of chinos. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of pistachios and chinos it produces. Sequoia's opportunity cost of producing 1 pound of pistachios is4 pairs of chinos, and Denali's opportunity cost of producing 1 pound of pistachios is2 pairs of chinos. Therefore,Sequoia has a comparative advantage in the production of pistachios, andDenali has a comparative advantage in the production of chinos. Suppose that each country…
Suppose that Canada produces two goods: lumber (y) and fish (x). It has 18 million workers, each of whom can cut 10 feet of lumber or catch 20 fish each day. a. The maximum amount of lumber Canada could produce in a day is Blank 1 million feet of lumber. b. The maximum amount of fish it could produce in a day is Blank 2 million fish.
We have two individuals, A and B, who works 40 hours per week each. They each consume food and clothing. It takes each person 10 hours to set up the production of food, and thereafter it takes 1 hour per production of 1 unit of food. How many units of food can each person produce in 1 week?
Suppose a nation ha a total of 24 units of labor, which can be use 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 quantitiy of guns that can be produced?
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.
The U.S. and Mexico both produce vehicles and tons of plastic, which are sold for the same price in both countries. Suppose that with one unit of labor and one unit of capital, the U.S. can produce either 20 vehicles or 43 tons of plastic and Mexico can produce either 10 vehicles or 18 tons of plastic. What is the opportunity cost of producing one vehicle (in terms of tons of plastic) for the U.S.?
Suppose the economy initially produces 15,000 gallons of drinking water and 400,000 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 tons of steel. Suppose, instead, that the economy currently produces 336,000 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 tons 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 the opportunity
What is the opportunity cost (amount & item) of the first 11,000 tons of coffee produced? ______________________ What is the opportunity cost (amount & item) of increasing production from 11,000 tons of coffee to 20,000 tons of coffee ? ________________ What is the opportunity cost (amount & item )of increasing production from 20,000 tons of coffee to 27,000 tons of coffee? _____________ What is the opportunity cost (amount & item) of increasing production from 27,000 tons of coffee to 30,000 tons of coffee ? ________________ What is happening to the opportunity cost as Costa Rica produces more coffee ?
The table below shows the number of labor minutes it takes for each employee to produce one pizza and one salad. Compare all 3 employees to one another and determine which one of the following statements is true? Select one: a. Carter has a comparative advantage in making Salad b. Carter has an absolute advantage in both products c. Melanie has a comparative advantage in making Pizza d. Jackson has a comparative advantage in making Salad e. Melanie has a comparative advantage in making Salad f. Jackson has an absolute advantage in both products g. Carter has a comparative advantage in making Pizza