Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184890
Author: PINDYCK
Publisher: PEARSON
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Question
Chapter 16, Problem 12E
(a)
To determine
The production possibilities frontier.
(b)
To determine
The production possibilities frontier.
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Students have asked these similar questions
If the production possibilities frontier can be expressed as 4X2+y2=16, then the point X=√3; Y+2 is
a)inside the production possibilities frontier
b)outside the production possibilities frontier
c)in the wrong quadrant to be on the graph
d)on the production possibilities frontier
Not a previously graded question.
Suppose the fictional country of Katmai produces only two goods: millet and microprocessors. The following graph plots Katmai's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F.
Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply.
The production possibilities frontier curve illustrates that
a.
an economy's capacity to produce is unrelated to its population.
b.
if all the resources of an economy are being used efficiently, more of one good can be produced only if more of another good is produced.
c.
an economy will automatically move toward a point at which all of its resources are being used inefficiently.
d.
if all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
Chapter 16 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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Similar questions
- If the resources used to produce two goods are specialized, then the production possibilities frontier has a bowed-out shape. [ Select ] ["false", "true"]arrow_forwardGiven the above production possibilities frontier, what is the opportunity cost of moving from point a to point b? C) 3 pairs of socks A) zero D) 2 sweaters B) 3/2 pairs of socks per sweaterarrow_forwardConsider a Production Possibility Frontier that bows outward. Suppose the production of one good increases. As a result opportunity cost of producing this good will __________ because productive resources ___________________ in their suitability for producing different kinds of goods. A. increase; differ B. decrease; are the same C. increase; are the same D. decrease; differarrow_forward
- If society begins by producing 3 units of X and 4 units of Y and then alters production so that it is now producing 4 units of X and 4 units of Y, and we know that the quantity and quality of resources were unchanged and that technology did not change, then: A) 3 units of X and 4 units of Y are a combination best represented by a point outside the production possibilities curve. B) resources were being efficiently utilized at 3 units of X and 4 units of Y. C) society has moved along the production possibilities curve. D) resources were being fully utilized at 3 units of X and 4 units of Y. E) 3 units of X and 4 units of Y are a combination best represented by a point inside the production possibilities curve.arrow_forwardSuppose Canada produces only tablets and smartphones. The resources that are used in the production of these two goods are not specialized—that is, the same set of resources is equally useful in producing both smartphones and tablets. The shape of Canada's production possibilities frontier (PPF) should reflect the fact that as Canada produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone: (a. increases, b. decreases, c. remains constant). The following graphs show two possible PPFs for Canada's economy: a straight-line PPF (PPF1) and a bowed-out PPF (PPF2). Based on the previous description, the trade-off Canada faces between producing smartphones and tablets is best represented by: (a. Graph 1, b. Graph 2).arrow_forwardQ/ Country X and Country Y are neighbours. Both Country X and Country Y can produce two goods: food and clothing. In one week, Country X can produce 4,400 clothing units or 2,200 food units, or a mix of the two. In one week, Country Y can produce 5,000 clothing units or 2,000 food units, or a mix of the two.For both Country X and Country Y, their individual trade-offs between clothing units and food units are constant, regardless of how they allocate their time. Currently, Country X produces 2,400 clothing units and 1,000 food units per week while Country Y produces 2,500 clothing units and 1,000 food units per week. c. Which country has a comparative advantage in food production? Which country has acomparative advantage in clothing production? Illustrate your answer using the PPC and showall the calculations. d. Should Country X and Country Y specialize and trade with one another? Why?arrow_forward
- What is the axiom of consumer choice that implies that consumers spend all their income in order to maximize utility? and Explain the main assumption behind a concave production possibilities frontierarrow_forwardSuppose a production possibilities frontier includes the following combinations: Cars Washing Machines 0 1,000 100 600 200 0 What is the cost of producing an additional car when 50 cars are being produced? What is the cost of producing an additional car when 150 cars are being produced?arrow_forwardSuppose the United States produces only two goods: alfalfa and computers. The following graph shows the United States’s current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, attainable, or unattainable. Check all that apply. (refer to screenshot for table and graph)arrow_forward
- Suppose there are two individuals, Casey and Rick, who live in a very simplified world where only two goods are produced and consumed; rice and beans. The production opportunity cost for Casey is 4.00kg of rice for every kilogram of beans. Rick has a production opportunity cost of 2.00 kg of rice for every kilogram of beans. Casey eventually realizes that, through trade, both individuals can be better off. Rick is willing to trade. What price can be settled between these two parties such that both individuals can enjoy more rice and beans?arrow_forwardWhich of the following is true of an economy’s production possibilities curve? a. It shows the combinations of any two resources that can be used to produce an efficient level of output. b. It shows the alternative combinations of goods that can be produced by fully employing scarce resources. c. It must be a straight line when all resources are fully employed. d. It is bowed in (convex to the origin) because of changing levels of technology. e. It is bowed out (concave to the origin) when marginal opportunity costs are constant.arrow_forward
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