Suppose Germany produces only camcorders and trucks. The resources that are used in the production of these two goods are specialized-that is, some resources are more suitable for producing camcorders than trucks, whereas others are mare suitable for producing trucks than camcorders The shape of Germany's production possibilities frontier (PPP) should reffect the fact that as Germany produces more trucks and fewer camorders, the opportunity cost of producing each additional truck, The following graphs show be possible PPs for Germany's economy a straight-tine PPF (PPP) and a bowed out PP (PPP) CAMCORDERS Graph TRUCKS (2) CAMCORDERS Graph 2 TRUCKS ? Based on the previous description, the tradeoff Germany faces between producing trucks and camcorders is best represented by
Suppose Germany produces only camcorders and trucks. The resources that are used in the production of these two goods are specialized-that is, some resources are more suitable for producing camcorders than trucks, whereas others are mare suitable for producing trucks than camcorders The shape of Germany's production possibilities frontier (PPP) should reffect the fact that as Germany produces more trucks and fewer camorders, the opportunity cost of producing each additional truck, The following graphs show be possible PPs for Germany's economy a straight-tine PPF (PPP) and a bowed out PP (PPP) CAMCORDERS Graph TRUCKS (2) CAMCORDERS Graph 2 TRUCKS ? Based on the previous description, the tradeoff Germany faces between producing trucks and camcorders is best represented by
Chapter2: Economic Tools And Economic Systems
Section: Chapter Questions
Problem 3.5P
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7.Specialization and production possibilities
Suppose Germany produces only camcorders and trucks. The resources that are used in the production of these two goods are specialized-that is,
some resources are more suitable for producing camcorders than trucks, whereas others are mare suitable for producing trucks than camcorders
The shape of Germany's production possibilities frontier (PP) should reflect the fact that as Germany produces more tricks and fewer camcorders,
the opportunity cost of producing each additional truck,
The following graphs show be possible PPPs for Germany's economy: a straight-line PPF (PPF) and a bowed out PP (PPP))
CAMCORDERS
TRUCKS
CAMCORDERS
p
Graph 2
TRUCKS
Based on the previous description, the tradeoff Germany faces between producing trucks and camcorders is best represented by
A-2
1
DP
corporations
tments to
core
to earn a
relatively
nd to other
market
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