EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 3, Problem 4MCQ
To determine
(a)
Best Alternative.
To determine
(b)
Best Alternative
To determine
(c)
Best Alternative.
To determine
(d)
Best alternative
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Which of the above 4 graphs best represents the change in the PPF if a tornado destroys part of the country?
A. Graph A.
B. Graph B.
C. Graph C.
D. Graph D.
PPC Practice Activity D O
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a. Draw a production possibilities curve for butter and guns using the data above.
b. Label the points where the economy would be efficient (A), underutilized (B) and unattainable (C).
c. What is the opportunity cost of moving from point A to point B?
d. What is the opportunity cost of moving from point B to point C?
e. What is the opportunity cost of moving from point D to point E?
Here is the production possibilities table for war goods and civilian goods:
Production Alternative
B
Types of Production
Robots
250
450
650
850
Wheat
130
117
109
89
Draw a production possibilities curve for robots and wheat using the data above.
b. Label the points where the economy would be efficient (A), underutilized (B) and unattainable (C).
c. What is the opportunity cost of moving from point A to point B?
d. What is the opportunity cost of moving from point B to point C?
e. What is…
Question 3 - Part 1
Explain how each of the following situations would affect a nation's production possibilities curve.
(i) A technological innovation allows the nation to more efficiently convert solar energy into electricity.
What happens to PPF
Choose.
Explanation
Choose.
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- Suppose you are a farmer with 20 hectares of land on which you could grow either wheat or barley. You can allocate however much land you want to each crop. a. Draw a Production Possibilities Frontier depicting this situation. b. Explain what a Production Possibilities Frontier is and what the diagram represents, including what points on, below and above the PPF represent. c. Explain why the PPF that you have drawn has the shape that it does. d. Is it possible to use just the PPF to find the best allocation for the crops? Explain.arrow_forwardWhat does a point inside the production possibilities frontier (PPF) represent? A. An efficient allocation of resources B. An underutilization of resources C. A technologically advanced production point D. An unattainable production level given current resourcesarrow_forwardA country, Frankland, produces only two products, cars and trucks. Currently, Frankland is producing on the curve, producing an even amount of cars and trucks. Define what a production possibilities curve is and is used for, and explain what happens when a new technology is adopted by the country of Frankland and the nation is able to increase production because of the increased productivity. You must use complete sentence to answer this question.arrow_forward
- During World War II, auto production was cut drastically. The resources available could be used to produce Jeeps or passenger cars. The resources could be used in the following ways. Number of Jeeps (1000’s) Number of Cars (1000’s) A. 0 500 B. 125 375 C. 250 250 D. 375 125 E. 500 0 a). Graph the above information on a PPF b). Why could you not increase the production of cars without decreasing the production of jeeps? c) What is the opportunity cost of moving from point B to D? f)What is the opportunity cost of moving from E to B?arrow_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_forward1. State three reasons for the PPF to shift to the right or left. 2. Describe the circular flow of income and expenditures 3. Why do you think the PPF of the Philippines will possibly shift to the left? 4. Compare the points inside the PPF and outside the PPF 5. Give four examples of normative and positive statements 6. How can you apply the principle of opportunity cost in your study? Please give an example 7. Do you think the 24-hour store follow the marginal benefit principles? Why or why not 8. If the fixed input is the two hectare of land and the variable input is fertilizer explain how the principle of diminishing return work in the outputs. 9. Give an example of positive externality. 10. Explain one factor that determines demand 11. Differentiate between the consumer and producer surplus 12. What information does the demand function convey? 13. What is the information does the point of intersection between demand and supply curve convey? 14. Give at least three conditions for…arrow_forward
- 1a. What is a Production Possibilities Frontier (PPF)? Consider an economy with only two goods: guns and butter. Show the tradeoff between the production of guns and the production of butter by drawing a (bowed outward) PPF (use gun production on the horizontal axis and butter production on the vertical axis). b. In what ways does the PPF reflect: i. scarcity and choice; and ii. increasing opportunity cost? c. How would the PPF be affected by a technological improvement in the production of guns? Solve all this question......you will not solve all questions then I will give you down?? upvote..arrow_forwardFarm-A and Farm-B grow the following amounts of potatoes and cabbage in their farms: Farm-A takes one week to produce 101 units of potatoes and 207 units of cabbages Farm-B takes one week to produce 127 units of potatoes and 169 units of cabbages a) What is the opportunity cost of Farm-A to produce 20 units of cabbages b) What is the opportunity cost of Farm-B to produce 12 units of potatoes PLEASE SOLVE ALL PARTS AS THERE ARE ONLY 2 SUB-PARTS TO THIS QUESTION. THANKS.arrow_forwardQuestion 3 - Part 3 Explain how each of the following situations would affect a nation's production possibilities curve. (iii) A global pandemic results in 6 million confirmed cases and the death of over 400,000 individuals. What happens to PPF Choose. Explanation Choose.arrow_forward
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