MACROECONOMICS - MYECONLAB >IA<
7th Edition
ISBN: 9780135852866
Author: Hubbard
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 2.1.8PA
Subpart (a):
To determine
The production possibilities frontier (
Subpart (b):
To determine
The production possibilities frontier (PPF) curve between consumption and capital goods.
Subpart (c):
To determine
The production possibilities frontier (PPF) curve between consumption and capital goods.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Poornima is a skilled toy maker who is able to produce both boats and kites. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time.
Choice
Hours Producing
Produced
(Boats)
(Kites)
(Boats)
(Kites)
A
8
0
4
0
B
6
2
3
11
C
4
4
2
17
D
2
6
1
19
E
0
8
0
20
On the following graph, use the blue points (circle symbol) to plot Poornima's initial production possibilities frontier (PPF).
Initial PPFNew PPF012345678302520151050KITESBOATS
Suppose Poornima is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is per day.
Now, suppose Poornima is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day is per day.
From the previous analysis, you can determine that as Poornima increases her production of boats, her opportunity…
Suppose the fictional country of Everglades produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for millet, an agricultural good, and electric scooters, a capital good.
Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of avian flu that sickens millions of workers.
Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.
PPF0701402102803504201801501209060300ELECTRIC SCOOTERS (Thousands)MILLET (Millions of bushels) PPF
Briefly describe the trade-offs involved in each of the following decisions. Specifically, list some of the opportunity costs associated with each decision, paying particular attention to the trade-offs between present and future consumption.
a. After a stressful senior year in high school, Sherice decides to take the summer off instead of working before going to college.
b. Frank is overweight and decides to work out every day and to go on a diet.
c. Mei is diligent about taking her car in for routine maintenance even though it takes 2 hours of her time and costs $100 four times each year.
d. Jim is in a hurry. He runs a red light on the way to work.
Chapter 2 Solutions
MACROECONOMICS - MYECONLAB >IA<
Ch. 2 - Prob. 1TCCh. 2 - Prob. 2TCCh. 2 - Prob. 2.1.1RQCh. 2 - Prob. 2.1.2RQCh. 2 - Prob. 2.1.3RQCh. 2 - Prob. 2.1.4PACh. 2 - Prob. 2.1.5PACh. 2 - Prob. 2.1.6PACh. 2 - Prob. 2.1.7PACh. 2 - Prob. 2.1.8PA
Ch. 2 - Prob. 2.1.9PACh. 2 - Prob. 2.1.10PACh. 2 - Prob. 2.1.11PACh. 2 - Prob. 2.1.12PACh. 2 - Prob. 2.1.13PACh. 2 - Prob. 2.1.14PACh. 2 - Prob. 2.2.1RQCh. 2 - Prob. 2.2.2RQCh. 2 - Prob. 2.2.3PACh. 2 - Prob. 2.2.4PACh. 2 - Prob. 2.2.5PACh. 2 - Prob. 2.2.6PACh. 2 - Prob. 2.2.7PACh. 2 - Prob. 2.2.8PACh. 2 - Prob. 2.2.9PACh. 2 - Prob. 2.2.10PACh. 2 - Prob. 2.2.11PACh. 2 - Prob. 2.2.12PACh. 2 - Prob. 2.2.13PACh. 2 - Prob. 2.2.14PACh. 2 - Prob. 2.2.15PACh. 2 - Prob. 2.3.1RQCh. 2 - Prob. 2.3.2RQCh. 2 - Prob. 2.3.3RQCh. 2 - Prob. 2.3.4RQCh. 2 - Prob. 2.3.5RQCh. 2 - Prob. 2.3.6RQCh. 2 - Prob. 2.3.7PACh. 2 - Prob. 2.3.8PACh. 2 - Prob. 2.3.9PACh. 2 - Prob. 2.3.10PACh. 2 - Prob. 2.3.11PACh. 2 - Prob. 2.3.12PACh. 2 - Prob. 2.3.13PACh. 2 - Prob. 2.3.14PACh. 2 - Prob. 2.3.15PACh. 2 - Prob. 2.3.16PA
Knowledge Booster
Similar questions
- One of the proposals that arose in a previous year's federal budget plan was to reduce the amount of money that people could set aside in their tax-extempt 401k savings plans.How would this proposal affect the economy's production possibilities frontier?use a graph to illustrate your answer.arrow_forwardThe following graph shows the production possibilities curve for an economy that produces Consumption goods and Capital goods. Use the graph to answer the following questions A) How do you describe what is happening as the economy moves from point P to point L? (discuss it in terms of economic efficiency) B) Which combination - K or M - can lead to faster economic growth in the future? How do you know? Explain your answer. C) If the economy is currently operation at point L, what is the opportunity cost of producing 10 more Capital goods (Moving from combination L to combination M)?arrow_forward. Opportunity cost and production possibilities Musashi is a skilled toy maker who is able to produce both boats and drums. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Choice Hours Producing Produced (Boats) (Drums) (Boats) (Drums) A 8 0 4 0 B 6 2 3 11 C 4 4 2 16 D 2 6 1 19 E 0 8 0 20 On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF). 1Suppose Musashi is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is per day. A. 1 DRUM B.3 DRUM C.16 DRUM D.19 DRUM 2Now, suppose Musashi is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is per day. A.1 DRUM B.5 DRUM C.11 DRUM D.16 DRUM 3. From the previous analysis, you can determine that as Musashi increases his…arrow_forward
Recommended textbooks for you
