Foundations of Economics, Student Value Edition (8th Edition)
8th Edition
ISBN: 9780134489230
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 1SPPA
To determine
Graphical Representation of
Expert Solution & Answer
Explanation of Solution
Inefficient points are those in which resources are not fully utilized or are wasted. Economy is producing output inside Production possibility curve. Point A is inefficient as 300 pounds of beef and 100 bushel of corn is produced. At this point, resources are wasted.
Unattainable combinations are such which lie outside PPF curve. These are the combination of output production which cannot be produced as resources are not available for such combination. Point B in unattainable point in the above figure.
Efficient Point: Production is said to be efficient at which an economy can produce maximum output using its existing resources. There is no scope of increasing production, only alteration can be done. Resources are fully employed and attainable. Point C is efficient point.
Economics Concept Introduction
Concept Introduction:
Production efficiency is the level of optimum level at which am economy can produce maximum output using its existing resources. There is no scope of increasing production, only alteration can be done.
An inefficient output is one in which more output of one good is produced without reducing the other good's output.
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!
Students have asked these similar questions
Figure 1 shows the PPF for an economy that produces Food and Clothes. Which of the following production bundles is feasible and efficient?
A) 50 Food and 360 Clothes
B) 170 Food and 144 Clothes
C) 320 Food and 48 Clothes
D) 440 Food and 144 Clothes
Figure 1 shows the PPF for an economy that produces Food and Clothes. What is the maximum amount of food that the economy can produce if it produces 48 clothes?
A) 50 Food
B) 320 Food
C) 440 Food
D) 500 Food
there is a textbook question I dont understand in my economics class.
show a positive change in the world through a L.A.S/S.A.S/A.D graph (Draw an example graph, and describe how it shows it)
Chapter 3 Solutions
Foundations of Economics, Student Value Edition (8th Edition)
Knowledge Booster
Similar questions
- The data below shows the various production possibilities for an economy that produces two goods, cars, and television sets. CombinationCars Television A10000 B800400 C600800 D4001200 E2001600 F02000 6. The output per worker increased resulting in more television sets being produced. Use the diagram in part a to illustrate this. 7. How does your diagram illustrate i) choice ii) scarcityarrow_forwardFigure 1 shows the PPF for an economy that produces Food and Clothes. What is the maximum amount of clothes that the economy can produce if it produces 320 food? A) 48 Clothes B) 144 Clothes C) 264 Clothes D) 400 Clothesarrow_forwardFigure 2 shows the PPF for an economy that produces Butter and Guns. What is the maximum amount of butter that the economy can produce if it allocates all of its resources for the production of butter? A) 0 B) 10,000 C) 30,000 D) 50,000arrow_forward
- Brother i need these graphs to be more detailed please sir at least the PPF onearrow_forwardConsider Economia, a nation that produces only clothes and food. On their straight-line PPF, food is measured on the horizontal axis and clothes are measured on the vertical axis. If Economia produces no food, it can produce 1200 units of clothing; if it produces no clothing, it can produce 4800 units of food. Calculate the slope of the nation's PPF. Economia would like to produce one more unit of food. To do so, it must sacrifice how many units of clothing?arrow_forwardSuppose 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. What is the maximum amount of lumber Canada could produce daily? What is the maximum amount of fish Canada could produce daily? Draw Canada’s production possibilities frontier.arrow_forward
- 3. Country A and Country B are two countries that each produce t-shirts (T) and sneakers (S). From its available resources and technology Country A can produce 100 t-shirts and 0 sneakers or 0 tshirts and 200 sneakers or any combination of t-shirts and sneakers that sits on Country A’s linear PPF. From its available resources and technology Country B can produce 50 t-shirts and 0 sneaker or 0 t-shirt and 50 sneakers or any combination of t-shirts and sneakers that sits on Country B’s linear PPF. a. On two separate graphs draw the PPF for Country A and Country B. Measure t-shirts on the vertical axis and sneakers on the horizontal axis. b. Write an equation in slope-intercept form for the PPF for Country A. c. Write an equation in slope-intercept form for the PPF for Country Barrow_forwardFigure 2 shows the PPF for an economy that produces Butter and Guns. What is the maximum amount of butter that the economy can produce if it is producing 4,800 guns? A) 10,000 B) 20,000 C) 30,000 D) 40,000arrow_forward4. An economy consists of three workers: Larry, Moe,and Curly. Each works 10 hours a day and can produce two services: mowing lawns and washing cars.In an hour, Larry can either mow one lawn or washone car; Moe can either mow one lawn or wash twocars; and Curly can either mow two lawns or washone car.a. Calculate how much of each service is producedunder the following circumstances, which welabel A, B, C, and D:r All three spend all their time mowing lawns. (A)r All three spend all their time washing cars. (B)r All three spend half their time on eachactivity. (C)r Larry spends half his time on each activity, whileMoe only washes cars and Curly only mowslawns. (D)b. Graph the production possibilities frontier for thiseconomy. Using your answers to part a, identifypoints A, B, C, and D on your graph.c. Explain why the production possibilities frontierhas the shape it does.d. Are any of the allocations calculated inpart a inefficient? Explain.arrow_forward
- Direction: Plot the Production Possibilities Frontier of the below-data with good X on the horizontal axis and good Y on the vertical axis. GOOD PRODUCTION ALTERNATIVES A B C D E X 0 15 18 21 24 Y 45 42 37 27 0 Question: Explain the different points on the curve. What does each point represent? Why is it important for an economy to be on its production possibilities frontier?arrow_forwardFarm-A and Farm-B grow the following amounts of potatoes and cabbage in their famrs: Farm-A takes one week to produce 107 units of potatoes and 208 units of cabbages Farm-B takes one week to produce 125 units of potatoes and 160 units of cabbages a) What is the opportunity cost of Farm-A to produce 20 units if cabbages b) What is the opportunity cost of Farm-B to produce 12 units of potatoesarrow_forwardThe data below shows the various production possibilities for an economy that produces two goods, cars, and television sets. Combination Cars Television A 1000 0 B 800 400 C 600 800 D 400 1200 E 200 1600 F 0 2000 Draw the ppf , put cars on the vertical axis and televisions on the horizontal axis. Use the letters P to label an attainable point. Use the letter T to label an unattainable point. Use the letter S to show an attainable and inefficient point List 3 assumptions on which the PPF is drawn. What is the opportunity cost of television production if we moved from combination E to D? On a new diagram illustrate how a decline in the quality of the labour force would impact the PPFfor car and television production. The output per worker increased resulting in more television sets being produced. Use the diagram in part a to illustrate this. How does your diagram illustrate i) choice ii) scarcity If all…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning