Concept explainers
(a)
Plot the
Concept Introduction:
Production productivity frontier: It is a curve which shows the maximum possible output of two goods with the given set of efficiently used inputs.
(b)
The cost of producing an additional car when
Concept Introduction:
Production productivity frontier: It is a curve which shows the maximum possible output of two goods with the given set of efficiently used inputs.
(c)
The cost of producing an additional car when
Concept Introduction:
Production productivity frontier: It is a curve which shows the maximum possible output of two goods with the given set of efficiently used inputs.
(d)
The cost of producing an additional washing machine when
Concept Introduction:
Production productivity frontier: It is a curve which shows the maximum possible output of two goods with the given set of efficiently used inputs.
(e)
What is derived about the concept of
Concept Introduction:
Production productivity frontier: It is a curve which shows the maximum possible output of two goods with the given set of efficiently used inputs.
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Chapter 2 Solutions
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
- Course: Macroecomonics Steve and Craig have been shipwrecked on a deserted island in the South Pacific. Their economic activity consists of either gathering pineapples or fishing. We know Steve can catch four fish in one hour or harvest two baskets of pineapples. In the same time Craig can reel in two fish or harvest two baskets of pineapples. Questions: If they each spend four hours a day fishing and four hours a day harvesting pineapples, how many of each will Steve produce? How many will Craig produce? What will their total production be?arrow_forward2-2b 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. 4. What is the opportunity cost of producing 1 foot of lumber? 5. Use your graph to determine how many fish can be caught if 60 million feet of lumber are cut.arrow_forwardMike and Sandy are two woodworkers who both make tables and chairs. In 1 month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. What is the opportunity cost of 1 table? Question 14 Select one: a. 1/5 chair for Mike and 1/3 chair for Sandy. b. 3 chairs for Mike and 5 chairs for Sandy. c. 5 chairs for Mike and 3 chairs for Sandy. d. 1/3 chair for Mike and 1/5 chair for Sandy.arrow_forward
- 5. The price of trade Suppose that Ireland and Norway both produce boots and shoes. Ireland's opportunity cost of producing a pair of shoes is 4 pairs of boots while Norway's opportunity cost of producing a pair of shoes is 11 pairs of boots. By comparing the opportunity cost of producing shoes in the two countries, you can tell that has a comparative advantage in the production of shoes and has a comparative advantage in the production of boots. Suppose that Ireland and Norway consider trading shoes and boots with each other. Ireland can gain from specialization and trade as long as it receives more than of boots for each pair of shoes it exports to Norway. Similarly, Norway can gain from trade as long as it receives more than of shoes for each pair of boots it exports to Ireland. Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of boots) would allow both Norway and Ireland to gain…arrow_forwardPart5 Explain how each of the following situations would affect a nation’s production possibilities curve. (v) The nation passes a law requiring all employers to give their employees 16 weeks of paid vacation each year. Prior to this law employers were not legally required to give employees any paid vacation time. What happen to PPF and why?arrow_forward6. Study Questions and Problems #6 The following table shows a set of hypothetical production possibilities for a nation producing automobiles and beef. Combination Automobiles Beef (Thousands) (Thousands of tons) A 0 10 B 2 9 C 4 7 D 6 4 E 8 0 On the following graph, use the blue points (circle symbol) to plot the production possibilities curve for the nation using the data in the preceding table. Line segments will automatically connect the points. PPFFG012345678910109876543210Beef (Thousands of tons)Automobiles (Thousands) The opportunity cost of the first 2,000 automobiles produced is tons of beef. Between which points is the opportunity cost per thousand automobiles highest? A and B B and C C and D D and E The opportunity cost per thousand tons of beef is the highest between points Using your answers in the preceding parts, you can see that the opportunity cost of 1,000…arrow_forward
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning