The figure shows the production possibilities frontier for a country. If the economy is operating at point B, then the opportunity cost of another million gallons of milk is Ice cream (millions of gallons per year) O A. 1 gallon of ice cream for a gallon of milk. O B. 4 gallons of ice cream for a gallon of milk. OC. zero because after producing another million gallons of milk then zero gallons of ice 4 cream are produced. O D. 3 gallons of ice cream for a gallon of milk. O E. 1/3 of a gallon of ice cream for a gallon of milk. 4. 5 Milk (millions of gallons per year)

The figure shows the production possibilities frontier for a country. If the economy is operating at point B, then the opportunity cost of another million gallons of milk is Ice cream (millions of gallons per year) O A. 1 gallon of ice cream for a gallon of milk. O B. 4 gallons of ice cream for a gallon of milk. OC. zero because after producing another million gallons of milk then zero gallons of ice 4 cream are produced. O D. 3 gallons of ice cream for a gallon of milk. O E. 1/3 of a gallon of ice cream for a gallon of milk. 4. 5 Milk (millions of gallons per year)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 4PA

See similar textbooks

Similar questions

Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
Suppose that Canada produces only lumber and fish. It has 18 million workers, each of whom can cut 10 feet of lumber or catch 20 fish daily. What is the maximum amount of lumber Canada could produce daily? What is the maximum amount of fish Canada could produce daily? Draw Canada’s production possibilities frontier.
points Suppose that Teavana produces boxes of Jade Citrus Mint Tea and Spiced Apple Cider. Below are the possible combinations of Jade Citrus Mint Tea and Spiced Apple Cider that Teavana can produce. Combination Jade Citrus Mint Tea (X axis) Spiced Apple Cider (Y axis) A 0 50 B 16 45 C 30 35 D 40 20 E 47 0 What is the opportunity cost (amount & item) of the first 16 Jade Citrus Mint Tea boxes produced? [a]______________ What is the opportunity cost (amount & item ) of increasing production from 16 Jade Citrus Mint Tea to 30 Jade Citrus Mint Tea? [b] _________________ What is the opportunity cost (amount & item) of increasing production from 30 Jade Citrus Mint Tea to 40 Jade Citrus Mint Tea? [c] _________________ What is the opportunity cost (amount & item) of increasing production from 40 Jade Citrus Mint Tea to 47 Jade Citrus Mint Tea? [d] _________________ What is happening to the opportunity cost as…
Suppose that an economy produces only 2 goods, beer and pizza. Show a typical production possibilities frontier for this country and use it to define and explain the opportunity cost concept and the concept of increasing opportunity costs. If a technology was invented that made the production of beer much more efficient but had no effect on the production of pizza how would the production possibilities frontier change (show it). While all points on the production possibilities curves maximize production, which point maximizes satisfaction? 1. With reference to a diagram, show and explain how a market, left on its own, will tend toward an equilibrium in which there is neither a surplus nor a shortage of the product. 1. What condition must be met in order to conclude that an economy is maximizing social well-being? Do the equilibriums given by individual markets necessarily lead to the maximization of social well-being (that is, if demand is equal to supply, can you conclude that…
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.
Combination Bananas metric tons (X axis) Coffee metric tons (Y axis) A 20,000 0 B 18,000 11,000 C 14,000 20,000 D 8,000 27,000 E 0 30,000 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? ____________
A) Calculate the opportunity cost of :- Increasing production of food from 20 to 30 million units.- Increasing production of clothing from 22 to 60 million units B) The country wants to produce 85 million units of food and 40 million units of clothing. Is this possible? What point is this called? C) State TWO (2) ways how they can achieve this point (B) in the future. D) If the country decides to produce 5 million units of food and 50 million units of clothing, what is this point called?
The table below shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D? B) 10 cans of cola per chocolate bar C) 3 cans of cola per chocolate bar D) 1/3 can of cola per chocolate bar A) 30 cans of cola per chocolate ba
Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that enablesmore healthcare with the same amount of resources. How would this affect the production possibilities curve and, inparticular, how would it affect the opportunity cost of education?
"Only answer c-d ones" (a) Calculate the opportunity cost of producing one additional unit of good x in terms of units of good y in Home and Foreign. The opportunity cost of producing one additional unit of good x in Home or foreign is the amount of good y that must be given up to produce it. At Home, one worker can produce 2 units of good x or 1 unit of good y. Thus, to produce one additional unit of good x, half a unit of good y must be given up. The opportunity cost in Home is 0.5 units of good y. In Foreign, one worker can produce 1 unit of good x or 2 units of good y. To produce one additional unit of good x, two units of good y must be given up. The opportunity cost in Foreign is 2 units of good y. (b) Derive the production possibilities frontier (PPF) for Home and Foreign and plot it in a graph with good x in the horizontal axis and good y in the vertical axis. To derive the production possibilities frontier (PPF) for Home and Foreign, we use the labor market clearing condition…
Suppose that an economy produces only 2 goods, beer and pizza. Show a typical production possibilities frontier for this country and use it to define and explain the opportunity cost concept and the concept of increasing opportunity costs. If a technology was invented that made the production of beer much more efficient but had no effect on the production of pizza how would the production possibilities frontier change (show it). While all points on the production possibilities curves maximize production, which point maximizes satisfaction?With reference to a diagram, show and explain how a market, left on its own, will tend toward an equilibrium in which there is neither a surplus nor a shortage of the product.What condition must be met in order to conclude that an economy is maximizing social well-being? Do the equilibriums given by individual markets necessarily lead to the maximization of social well-being (that is, if demand is equal to supply, can you conclude that well-being is…
Suppose that an economy produces only 2 goods, beer and pizza. Show a typical production possibilities frontier for this country and use it to define and explain the opportunity cost concept and the concept of increasing opportunity costs. If a technology was invented that made the production of beer much more efficient but had no effect on the production of pizza how would the production possibilities frontier change (show it). While all points on the production possibilities curves maximize production, which point maximizes satisfaction?With reference to a diagram, show and explain how a market, left on its own, will tend toward an equilibrium in which there is neither a surplus nor a shortage of the product.What condition must be met in order to conclude that an economy is maximizing social well-being? Do the equilibriums given by individual markets necessarily lead to the maximization of social well-being (that is, if demand is equal to supply, can you conclude that well-being is…