Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 8, Problem 5Q
.
To determine
The effect of the following incidences on PPC:
(a) Effect of Black Death of Europe.
(b) Effect of change in composition of labor force after
(c) Effect of discovery of Shale gas.
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Students have asked these similar questions
Draw a new curve, on the same graph,reflecting what the PPC might look like if new production technology is invented to speed up production in just the Jade Citrus Mint Tea industry.
Combination
Jade Citrus Mint Tea (X axis)
Spiced Apple Cider (Y axis)
A
0
50
B
16
45
C
30
35
D
40
20
E
47
0
If a PPF is "bowed outward" from the origin, then which of the following can be true? (check all that apply)
The opportunity cost of producing another unit of the good on the y-axis decreases in terms of foregoing units of the good on the x-axis that are given up.
The opportunity cost of producing another unit of the good on the x-axis increases in terms of foregoing units of the good on the y-axis that are given up.
Inputs may be specialized for different uses
Each unit of labor isn't equally productive in producing every unit of each good
Draw a new curve, on the same graph, reflecting what the PPC might look like if new production technology is invented to speed up production in both industries.
Combination
Bananas metric tons (X axis)
Coffee metric tons (Y axis)
A
20,000
0
B
18,000
11,000
C
14,000
20,000
D
8,000
27,000
E
0
30,000
Chapter 8 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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Similar questions
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- The production possibilities frontier (PPF) for Honduras and Brazil, representing hypothetical levels of production, are shown in the graphs. Assume that, without trade, each country is initially producing and consuming at point A on its PPF curve. Suppose these countries decide to trade. Each country will specialize in the production of the good for which it has a comparative advantage. Assume the countries agree to trade. The terms of trade are 6000 tons of bananas for 4000 tons of steel. Move the post‑trade consumption point for each country to reflect their post‑trade consumption. Which good will each country produce? Honduras will produce bananas and Brazil will produce steel. Brazil will produce both bananas and steel. Honduras will produce both bananas and steel. Honduras will produce steel and Brazil will produce bananas.arrow_forwardwhat accounts for the shape of the PPC? In other words, what is it about the relationship between catching and gathering mangos that explains the shapearrow_forwardIf it is more efficient for a country to produce a mixture of all goods (a combination that contains both products on a two dimensional PPC), which statement regarding their PPC is correct? a) This curve is a concave PPC. b) This curve is a convex PPC. c) This curve does NOT demonstrate the Law of Increasing Opportunity Cost. d) This curve does NOT demonstrate the Law of Diminishing Returns. e) It is best for this economy to produce inside the PPC and NOT on the curve.arrow_forward
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