Answered: Why does the shape of a PPC for…

Business

Economics

Why does the shape of a PPC for individuals differ from that of the economy as a whole?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter7: Economic Growth: Theory And Policy

Section: Chapter Questions

Problem 4TY

See similar textbooks

Related questions

Q: 10) PPFS for Countries X and Y 300 Y 200 400 tons of rice a). In the graph above, what is the…

A: Comparative advantage, when country can produce a good with least opportunity cost than than others.

Q: What information additional information (besides what is shown in the PPC) would be needed for the…

A: c. All government consumption, investment, and transfer payments are included in government spending…

Q: Paul's PPF Sue's PPF Cheese Cheese 100 60 40 30 20 80 Ham 36 90 Ham The graph above shows that Paul…

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: In a world where the only goods are cell phones and cereal: Jennereelam can produce: 80m kilos of…

A: According to the question given, Jennereelam can produce 80 million kilos of cereal and 200…

Q: Which of the following is most likely to shift the PPC out and to the right? O The discovery of a…

A: PPC refers that Production Possibility Curve which show the production of the two goods by using the…

Q: N. Draw a new curve, on the same graph, reflecting what the PPC might look like if new production…

A: Answer: (A). The graph of PPF is given below: According to the above graph, the x-axis measures…

Q: What is allocative efficiency and how does it relate to the PPC

A: Production Possibility Curve or PPC represents all the combinations of two goods which can be…

Q: Using a simple model of the Production Possibilities Curve (PPC), label points that show…

A: The PPC is the production possibility curve which illustrates the different combinations of two…

Q: 4. Demonstrate your understanding of the PPC. Use the table below to graph the PPC and make the…

A: Given A B C D E Ice cream 0 1 2 3 4 Chocolate 30 29 25 15 0

Q: Use the following production possibilities frontier for a country to answer the following questions.…

A: Production means goods are produced in such a manner that cost is minimized and production is…

Q: The following graph shows the production possibilities frontier (PPF) of an economy that produces…

A: Opportunity cost is the forgone profit that the producer would have gained if he had selected the…

Q: The following graph shows the production possibilities curve (PPC) of an economy that produces…

A: Opportunity Cost is the cost or value of doing something or of choosing an alternative. It can be…

Q: D.) Show an example of trade between the two nations. You must establish a terms of trade And show…

A: Since you have asked specifically the solution for part D, we are providing with the answer for Q…

Q: 12. Use the production possibility curve (PPC) to answer the question. If Zambia is currently on…

A: The production possibility curve (PPC) shows the bundle of two commodities that a country can…

Q: Suppose Martha and Julia both work at a bakery making bread and muffins. In an hour, Martha can…

A: Comparative advantage is based on opportunity cost. Absolute advantage is based on the number of…

Q: What two things must change or be improved to move a PPC out?

A: The production possibilities curve or PPC is a diagrammatic representation of the combination of two…

Q: Sara and Fran produce boards and sails for windsurfing. The tables show their production…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: Consider the PPF of a country with movies on the horizontal axis and computers on the vertical axis.…

A: Production Possibility Frontier refers to the curve that shows different possible combinations of…

Q: use a diagram to ishow how ppf illustrates the loss of resources for a country

A: PPF or Production Possibility frontier gives the possible combination of goods that can be produced…

Q: what accounts for the shape of the PPC? In other words, what is it about the relationship between…

A: The production possibility frontier (PPF) is a curve on a graph that delineates the potential…

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

A: a. Total number of workers in Canada = 10 Million Production by 1 worker in Canada = 2 cars or 30…

Q: 8. Germany and Japan both produce cars and beer. The table below shows production possibilities per…

A: A country has absolute advantage in production if it can produce more output than it's competitor…

Q: What is ppc?

A: PPC stands for production possibility curve.

Q: The blue (inner) curve on the following graph shows the current production possibilities curve (PPC)…

A: The production possibility curve (PPC) is a locus of the combination of two goods that an economy…

Q: 3. Why do you think the PPF of the Philippines will possibly shift to the left? Explain.

A: The production possibility frontier would result in the producing the maximum amount of output which…

Q: Between a straight line PPF and concave PPF, which one is more realistic? Why? Explain with example…

A: A production possibility frontier (PPF) shows the maximum output combinations of two goods an…

Q: On a PPC graph, how is economic growth shown? O By pushing the curve to the right. O By moving the…

A: Correct: By pushing the curve to the right

Q: c) Who has an absolute advantage in the refuelling the car and replacing a tire? Based from the…

A: Refuel (R) Tire Change (T) B1 4 sec ( 1 R costs 2 T) 2 sec (1 T costs 0.5 R) B2 6 Sec (1 R…

Q: Compare the points inside the PPF and outside the PPF. Explain.

A: Point inside and outside the production possibility Frontier indicate different things.

Q: Looking at the production possibility curve, it can be noticed that Zimbabwe's production of oil and…

A: A production possibility curve that refects different combinations of output that can be produced…

Q: 1. Suppose that in a year an American worker can produce 100 shirts or 20 computers, while a Chinese…

A: In economics and international trade, absolute advantage and comparative advantage are two…

Q: Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons…

A: The trade pattern is decided by the comparative advantage. A country that does not have absolute…

Q: Answer the attached question

A: Production possibility frontier refers to all possible combinations of two goods that can be…

Q: b. Illustrate a PPC for cars and books. c. Give economic meaning to this PPC.…

Q: Consider a simple economy of Korea - producing two goods, Motor bike and milk. The details of the…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Solve the attahment.

A: David Ricardo's theory of comparative advantage provides a paradigm for international trade between…

Q: Hello, I am having problems with these two questions. Refer to attached picture for questions.…

A: It is given that there are two nations (Korea and Malaysia) that produces two goods (Lumber and…

Q: Give a definition of an advance in technology. Suppose that you are drawing a PPF for civilian goods…

A: Advance in technology can be understood when the same amount of resources is able to more than…

Q: So what is true about this combination of fish and water? The combination of 4 fish & 4 bottles of…

A: The production possibility frontier (PPF) represents different combination of two goods that can be…

Q: The following graph shows the production possibilities curve (PPC) of an economy that produces…

A: PPC shows combinations of two outputs that can be produced with the given level of resources and…

Q: Imagine that it takes an average Australian miner 10 hours to mine a metric ton of coal and 20 hours…

A: A country, that can produce a good or service at less opportunity cost than the other country, is…

Q: Which country has an absolute advantage in the production of fruit? Which country has an absolute…

A: Hi, thank for the question. Since there are multiple sub-parts are posted, we will answer first…

Q: A В C D E F G Trucks 20 28 35 40 43 45 Cars 54 52 49 43 35 25 How could the PPC shift to the left?

A: Production possibility curve: - it is the graphical representation of different combinations of two…

Q: iv. Which country has the Comparative advantage in chairs? v. If each country has 10 workers who can…

A: Absolute advantage is the ability to produce a good using fewer inputs than another producer, while…

Q: What would it mean if the production possibilities Frontier (PPF) were bowed inward (convex),as…

A: PPF is the production possibility frontier of the economy which shows the possible combinations of…

Q: New Zealand in one year can raise 75 tons of beef or produce 750 boxes of tulips. In the same…

A: Answer: Given, Beef (tons) Tulips (boxes) New Zealand 75 750 Belgium 40 650 Let us first…

Q: Use the diagram below to answer the questions that follow. (a) What change could cause the PPF…

A: PPF i.e production possibility frontier shows all the possible combinations of the goods that the…

Q: 14. Which of the following is correct? a. The PPF must be concave. b. The PPF must be a straight…

A: NOTE: We'll answer the first question as the exact one is not specified. Please submit a new…

Concept explainers

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.

Question

. Why does the shape of a PPC for individuals differ from that of the economy as a whole?

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

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

D.) Show an example of trade between the two nations. You must establish a terms of trade And show how that would shift the consumption point of the PPF. graph for each nation.
Draw a PPF graph for a farm producing two products (RICE & WHEAT) that illustrates increasing opportunity cost and show: a) Show how this PPF graph will change when a technological progress happens in the production of both products? b) Show how this graph will change when this PPF graph shift inwards? And what could be the reason for this PPF graph to shift inwards?
What would it mean if the production possibilities Frontier (PPF) were bowed inward (convex),as opposed to bowed outward (concave)? Clearly explain your answer, using diagrams and examples.
Between a straight line PPF and concave PPF, which one is more realistic? Why? Explain with example and graph.
2. What is a production possibilities frontier (ppf) for an economy? explain your answers with an appropriate diagram.
3. What is a production possibility frontier? State the assumptions and two types of PPF. What is the basic difference between them and which one is more relevant to the real world. Using a PPF, state the different points regarding efficiency, inefficiency and productively inefficientpoints. Explain the factors which can cause a PPF to shift inwards.
1. Give an example to illustrate each of the following: (a) constant opportunity costs: (b) increasing opportunity costs: 2. Within the PPF framework, explain each of the following: (a) a disagreement between a person who favors more domestic welfare spending and one who favors more national defense spending; (b) an increase in the population; and (c) a technological change that makes resources less specialized.
1a. What is a Production Possibilities Frontier (PPF)? Consider an economy with only two goods: guns and butter. Show the tradeoff between the production of guns and the production of butter by drawing a (bowed outward) PPF (use gun production on the horizontal axis and butter production on the vertical axis). b. In what ways does the PPF reflect: i. scarcity and choice; and ii. increasing opportunity cost? c. How would the PPF be affected by a technological improvement in the production of guns? Solve all this question......you will not solve all questions then I will give you down?? upvote..
For question 1. I don’t understand how we are supposed to do the PPF with such little information. Then for parts A-D I feel like I don’t t cow enough information do all of that. I don’t understand how we do the graph
Although a production possibilities frontier is usually drawnfor a country, one could be drawn for the world. Picture theworld’s production possibilities frontier. Is the world positioned at a point on the PPF or below it? Give a reason foryour answer.
The following graph shows the production possibilities frontier (PPF) of an economy that produces drinking water and steel. The black points (plus symbols) represent three possible output levels in a given month. You can select the points to see their exact coordinates. Suppose the economy initially produces 6 million gallons of drinking water and 200,000 tons of steel, which is represented by point A. The opportunity cost of producing an additional 2 million gallons of drinking water (that is, moving production to point B) is _________ (options: 24000, 32000, 40000, 48000, 60000). Suppose, instead, that the economy currently produces 168,000 tons of steel and 8 million gallons of drinking water, which is represented by point B. Now the opportunity cost of producing an additional 2 million gallons of drinking water (that is, moving to point C) is ________ (options: 24000, 32000, 40000, 48000, 60000). Comparing your answers in the two previous paragraphs, you can see that the…