1. Improvements in technology. 2. Increases in the supply (stock) of capital goods. 3. Purchases of expanding output 4. Obtaining the optimal combination of goods, each at least-cost production 5. Increases in the quantity and quality of natural resources. 6. Increases in the quantity and quality of human resources. Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve? Multiple Choice 1.2.5, and 6 only 3 and 4 only
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- 1. Using the following combinations as Production Possibilities data for iPads and HDTVS, answer the following questions: А В D iPads 5,000 4,500 3,500 2,000 HDTVS 1,000 2,000 3.000 4,000 In the Production Possibilities Function and schedule shown above, a production combination of 3,500 iPads and 1,500 HDTVS would enjoy (a utility / an economy / an opportunity cost / a free lunch / an international trade) [circle all that apply] if one or more resources are used more efficiently. Consequently, if this happens, this economy's production possibilities will become (attainable / unattainable / efficient / inefficient / impossible with current resources) [circle all that apply]. е.se the list below to answer the following question: 1. Improvements in technology. 2. Increases in the supply (stock) of capital goods. 3. Purchases of expanding output. 4. Obtaining the optimal combination of goods, each at least-cost production. 5. Increases in the quantity and quality of natural resources. 6. Increases in the quantity and quality of human resources. Which set of items in the list would shift an economy's production possibilities curve outward? 2, 5, and 6 only. 2, 4, 5, and 6 only. 1, 2, 5, and 6 only. 1, 3, and 4 only.Evidence accumulates that the use of chemical fertilizers, which increases agricultural production greatly, damages water quality. Explain in words how you would draw a production possibilities curve to depict this (which "good" should be placed on each axis) and why your curve would have a particular shape.
- 2. Below is a production possibilities frontier (PPF) for Happyland, acountry that produces only two goods- wine and cheese. wine cheese a) Explain what the production possibilities frontier is and how it illustrates scarcity. b) What happens to the marginal opportunity costof cheese production in Happyland as the country increases its cheese production? (increase, decrease, unchanged or indeterminate?) Explain how you can tell this from the PPFand why it happens. c) Briefly describe two specific policies the government of Happyland could undertake to shift out their PPF in future periods. (By specific policies, I mean something they can actually do to change productivity for either or both of these goods. "Increase resources," for example, is not a specific policy. What resources and what type of policy could increase the resources used for either of these products?)2. What effect does "Increasing Opportunity Cost" have on the Production Possibilities Curve? 3. What are the four categories of Resources? Give an example of each.Which of the following will shift an economy's production possibilities curve outward? Select one: a. An increase in the unemployment rate. b. A decrease in land, labor, or capital. c. A decrease in the unemployment rate. d. An improvement in technology. Suppose there is a decrease in the price of herbicides and pesticides used in the production of barley. All other things being equal, the equilibrium price of barley will _______, and equilibrium quantity will _______. And suppose barely and hops are complements. After the change in the barley market occurs, all other things being equal, it follows that the equilibrium price of hops will _______, and equilibrium quantity will _______. Select one: a. increase; decrease; increase; decrease b. decrease; increase; decrease; decrease c. decrease; increase; increase; increase d. increase; increase; decrease; increase This past year, a sharp decrease in Japanese demand for U.S. dollars…
- 4. Shifts in production possibilities Suppose the United Kingdom produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for barley, an agricultural good, and cars, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of an immigration law that results in fewer workers entering the country. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. ? CARS (Thousands) 300 250 200 150 100 50 0 0 80 PPF 160 240 320 BARLEY (Millions of bushels) 400 480 6 PPFvidence accumulates that the use of chemical fertilizers, which increases agricultural production greatly, damages water quality. A) Explain in words how you would draw a production possibility curve to depict this (which “good” should be placed on each axis) and why your curve would have a particular shape. B) In what ways does the production possibilities curve from part a) reflect scarcity, choice and opportunity cost? C) Discuss THREE possible impacts of an improved fertilizer on the production possibility frontier from part a.Figure 2-7 Production possibilities curve A Food If an economy operates at point A on the production possibilities curve shown in Figure 2-7 2-7.png, to produce more food, it would have to reduce its production of clothing. O to produce more clothing, it would have to reduce the production of food. O it is operating efficiently. O all of the answer choices are correct. Clothing
- 8. Shifts in production possibilities Suppose the United States produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for alfalfa, an agricultural good, and industrial copiers, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of avian flu that sickens millions of workers. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. 540 450 PPF 380 270 180 90 PPF 100 200 300 400 500 600 ALFALFA (Millions of bushels) INDUSTRIAL COPIERS (Thousands)2. Which of the following is not an assumption that underlies an economy's production possibilities curve? A. fixed income B. fixed resources C. unchanged technology D. fully employed resources4. Shifts in production possibilities Suppose Spain produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for alfalfa, an agricultural good, and locomotives, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of an Improvement in soil quality because of new fertilization techniques. Note: Select either end of the curve on the graph to make the endpoints appear, Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and It snaps back to its original position, just drag it a little farther. A20 350 PPF 280 210 140 70 PPF 40 80 120 160 200 240 ALFALFA (Millons of bushels) LOCOMOTIVES (Thousands)