Principles Of Microeconomics (book With Myeconlab With Pearson Etext Access Card)
Principles Of Microeconomics (book With Myeconlab With Pearson Etext Access Card)
12th Edition
ISBN: 9780134435039
Author: CASE, Karl E.; Fair, Ray C.; Oster, Sharon E.
Publisher: PEARSON
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Chapter 2, Problem 1.8P

Subpart (a)

To determine

Production Possibilities Frontier.

Subpart (b)

To determine

Relevance of principle of increasing opportunity cost.

Subpart (c)

To determine

Changes in PPF.

Subpart (d)

To determine

Production possibility frontier after new technology.

Subpart (e)

To determine

Changes in production of carpet.

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A nation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms: Yards of Carpets                                 Carpet Looms      (Millions)                                          (Thousands) 0                                                          50 10                                                        40 22                                                        28 34                                                        19 46                                                          8 60                                                          0 These figures assume that a certain number of previously produced looms are available in the current period for producing carpet. Using data in the table, graph the ppf (with carpet on the vertical axis) What happens to the opportunity cost of carpets measured in number of looms—as carpet production increases from 0 to 10 Million yards, from 10 to 22 Million yards, from…
A nation with fixed quantities of resources is able to produce any of the following combinations of bread and ovens:Bread (tons) Oven (000’s)60 050 1240 2230 3020 3610 40 0 42These figures assume that a certain number of previously produced ovens are available in the current period for baking bread.a. Using data in the table, graph the ppf (with ovens on the vertical axis)b. What happens to the opportunity cost of bread – measured in number of ovens—as bread production increases from 0 to 10 tons, from 10 to 20 tons, from 20 to 30 tons, and so on?c. If this country chooses to produce both bread and ovens, what will happen to the ppf over time? Why? Select one:a. Remains stagnant b. Decline over time towards inefficiencyc. Increase over time and declined. Increase over time towards growth
Any point on a country's production possibilities frontier represents a combination of two goods that an economy: Select one: a. may be able to produce in the future with more resources and/or superior technology. b. can produce using some portion, but not all, of its resources and technology c. can produce using all available resources and technology. d. will never be able to produce.
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