BuyFind

Microeconomics

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617406
BuyFind

Microeconomics

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617406

Solutions

Chapter
Section
Chapter 20, Problem 1QP
Textbook Problem

Although a production possibilities frontier is usually drawn for a country, one could be drawn for the world. Picture the world’s production possibilities frontier. Is the world positioned at a point on the PPF or below it? Give a reason for your answer.

Expert Solution
To determine

The position of world’s production possibility frontier.

Explanation of Solution

Most probably, the world’s position in the production possibility frontier is below the frontier. This is because there is a decrease in world’s production and consumption due to the trade restrictive measures adopted by the nations, such as quota and tariff. The nations produce and consume more if there are no restrictions. This is because they would not get any benefit with trade restrictive measures.

Economics Concept Introduction

Production possibilities frontier: PPF refers to the different combinations of goods and services that can be produced efficiently with the given resources by a firm.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Get Solutions

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Get Solutions

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
Why do economists sometimes offer conflicting advice to policymakers?

Principles of Microeconomics (MindTap Course List)

CASH CONVERSION CYCLE Christie Corporation is trying to determine the effect of its inventory turnover ratio an...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Why do products have to be deleted from a product mix?

Foundations of Business (MindTap Course List)

Explain the matching principle.

College Accounting, Chapters 1-27