Microeconomics (Book Only)
12th Edition
ISBN: 9781285738307
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 2, Problem 1QP
(a)
To determine
Changes in U.S
(b)
To determine
Changes in U.S PPF.
(c)
To determine
Changes in U.S PPF.
(d)
To determine
Changes in U.S PPF.
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In a production possibilities frontier graph, the cost of producing more units of a
good is measured by the
A) dollar value of the resources used to produce the good.
B) amount of the other good or service that must be forgone.
dollar value of the additional output.
area in the arc between the PPF and a straight line drawn between the
starting point and the ending point.
E) None of these answers is correct.
a) Why is the PPF curve bowed outward. Is it due to increasing opportunity cost or decreasing opportunity cost or constant opportunity cost
Type and answer using only one of the underlined words above
b) What happens to the PPF curve during a recession? Will it shift inward or outward or remains constant
Type and answer using only one of the underlined words above
c) Suppose a technology is banned due to its adverse environmental impacts. Would the production possibilty curve shift inward or outward or remain
constant due to this
Type and answer using only one of the underlined words above
d) How will a policy encouraging more immigration would shift the production possibility forntier. It will shift inward or outward or remain constant
Type and answer using only one of the underlined words above
Using a production possibilities frontier determine how does a country's PPF change in response to the events described below .
Make sure to explicit what sort of assumption each event implies (neutral effect or sector biased effect).and what sectors you are representing . The latter follows from your assumptions on the factor intensity of the sector you are representing.
1. Reducing import taxes on primary inputs.
2. The discovery of new mineral deposits in a country.
Chapter 2 Solutions
Microeconomics (Book Only)
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1VQPCh. 2 - Prob. 2VQPCh. 2 - Prob. 3VQPCh. 2 - Prob. 4VQPCh. 2 - Prob. 5VQPCh. 2 - Prob. 1QP
Ch. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QPCh. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 1WNGCh. 2 - Prob. 2WNGCh. 2 - Prob. 3WNGCh. 2 - Prob. 4WNGCh. 2 - Prob. 5WNGCh. 2 - Prob. 6WNGCh. 2 - Prob. 7WNGCh. 2 - Prob. 8WNGCh. 2 - Prob. 9WNG
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- (a) If PPF₂ in the graph that follows is the relevant PPF, then which points are unattainable? Explain your answer. (b) If PPF₁ in the preceding figure is the relevant PPF, then which point(s) represent productive efficiency? Explain your answer.arrow_forwardA global pandemic results in 6 million confirmed cases and the death of over 400,000 individuals. What happens to the PPF curve? Also, from the list provided, please choose an explanation as to why you chose your previous answer. What happens to the PPF? Explain. Choose: PPF shifts outwards Produce inside PPF Produce outside PPF Increased production given resources Increase in resources PPF shifts inwards Unused Resourcesarrow_forwardUsing a production possibilities frontier determine how does a country's PPF change in response to the events described below. Make sure to explicit what sectors are you representing and what sort of assumption each event implies (neutral effect vs a sector biased effect). The latter follows from your assumptions on the factor intensity of the sector you are representing. 1.reducing import taxes (tariffs)on primary inputs 2.increasing the expenditure on research and development 3.the introduction of greater flexibility in labour markets(new government laws enabling easier hiring of workers) 4.increasing skilled migration into a country 5.the discovery of new mineral deposits in a country.arrow_forward
- Use the diagram below uploaded to answer the questions that follow. (a) What change could cause the PPF to shift from the original curve (HJ) to the new curve (MN)? (b) Under what conditions might an economy be operating at point Z? (c) Why might a government implement a policy to move the economy from Point V to Point W?arrow_forwardHelp! The question is to Explain how the following situation would affect a nation's production possibilities curve. A category 5 hurricane destroys over 40% of the nation's productivity. The two questions are What happens to PPF and an explanation. The options for both are in the drop down.arrow_forwardHow would the production possibilities curve be impacted? Group of answer choices The PPC would shift outward The PPC would shift inward The point on the PPC would move closer to the curve The point on the PPC would move closer to the origin HERE ARE THE QUESTIONS: Explain how each of the following situations would affect a nation’s production possibilities curve. A law is passed which makes community college tuition free for all U.S. citizens. An unexpectedly mild spring results in a bumper crop of citrus fruit in both Florida and California. A change in immigration laws significantly decreases the number of immigrant workers entering the country. The amount of time that unemployed workers can collect unemployment insurance is decreased from 96 weeks to 26 weeks following the end of a recession, resulting in workers remaining unemployed for a shorter period of time. An innovation in desalinization technology allows for the more efficient conversion of salt water…arrow_forward
- In this assignment, you will demonstrate your ability to draw a simple production possibilities curve given data on the quantity of one input (labor) available and the amount of labor required to produce each of two outputs (guns and butter). You should also be able to identify the opportunity cost of one good in terms of the other as the slope of the PPC. You will explain your analysis of the figures to explain why it’s not possible to produce combinations of the two goods outside the PPC. Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce. 1. Explain why scarcity exists in this economy. Use the data as evidence of your reasoning. 2. What is the maximum quantity of guns that can be produced? 3. What is the maximum quantity of butter than can be produced? 4. Draw the nation’s production possibility curve. 5. What is the opportunity cost of guns in…arrow_forwardor each of the following separate parts, you are required to draw one or two graphs. Make sure that you label both axes correctly. (a) Consider the demand for gasoline. Suppose more substitutes for gasoline are available. Draw a graph to show how the price of elasticity of demand for gasoline changes. (b) Country A produces two goods: chicken wings and pizzas. If unemployment rate increases, draw how the PPF of country A will change. Assume that opportunity costs are increasing. (c) Consider the market for new houses. Suppose the prices of the materials for building houses increase. Draw a graph to show how the equilibrium of market for new houses changes.arrow_forward
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