Answer the question on the basis of the data given in the following production possibilities table. Production Possibilities (Alternatives) A D E F Capital Goods 4 2 1 Consumer Goods 9. 12 14 15 Refer to the table. For these data, the law of increasing opportunity costs is reflected in the fact that Select one: O A. the production possibilities data would graph as a straight downsloping line. B. the economy's resources are presumed to be scarce. O C. larger and larger amounts of capital goods must be sacrificed to get additional units of consum O D. the amount of consumer goods that must be sacrificed to get more capital goods diminishes b

Answer the question on the basis of the data given in the following production possibilities table. Production Possibilities (Alternatives) A D E F Capital Goods 4 2 1 Consumer Goods 9. 12 14 15 Refer to the table. For these data, the law of increasing opportunity costs is reflected in the fact that Select one: O A. the production possibilities data would graph as a straight downsloping line. B. the economy's resources are presumed to be scarce. O C. larger and larger amounts of capital goods must be sacrificed to get additional units of consum O D. the amount of consumer goods that must be sacrificed to get more capital goods diminishes b

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 3PA

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Similar questions

What are the similarities between a consumers budget constraint and societys production possibilities frontier, not just graphically but analytically?
Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
During the Second World War, Germanys factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germanys production possibilities curve?
Would a research study on the effects of soft drink consumption on childrens cognitive development he a positive or normative statement?
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?)
To determine how much of a good to produce to achieve allocative efficiency, we O A. construct a production possibilities frontier and choose the midpoint. O B. must produce on the PPF and at the point where the marginal benefit exceeds by as much as possible the marginal cost of the good. OC. construct a production possibilities frontier and choose any point on it. O D. must produce on the PPF and at the point where the marginal benefit exceeds by any amount the marginal cost of the good. O E. must produce on the PPF and at the point where the marginal benefit and marginal cost of the good are equal.
Below is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts): a. Show these data graphically. Upon what specifific assumptions is this production possibilities curve based?b. If the economy is at point C, what is the cost of one more automobile? Of one more forklift? Explain how the production possibilities curve reflfl ects the law of increasing opportunity costs.c. If the economy characterized by this production possibilities table and curve were producing 3 automobiles and 20 fork lifts, what could you conclude about its use of its available resources?d. What would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a level of production?
Figure 2-4 Production possibilities curve B A Food Which of the following is true of Figure 2-4? 2-4.png If the economy operates at point B, resources are being used inefficiently. O If the economy operates at point A, resources are being used efficiently. If the economy operates at point B, it is impossible to increase the output of clothing without giving up food production. If the economy operates at point A, it is impossible to produce more of both food and clothing. Clothing
The first principle of economics in Chapter 1 is thatpeople face trade-offs. Use a production possibilitiesfrontier to illustrate society’s trade-off between two“goods”—a clean environment and the quantity ofindustrial output. What do you suppose determinesthe shape and position of the frontier? Show whathappens to the frontier if engineers develop anew way of producing electricity that emits fewerpollutants
Below is a table of production possibilities for a company that produces soft drink bottles and juice bottles (in thousands of units per week): Production alternatives production type A B C D E F Set of 8 soft drink bottles 0 4 10 15 19 22 12 juice box 58 56 48 32 16 0 Plot this data on a graph. What specific assumptions are represented by this production possibilities curve? If a firm is at point C, what is the opportunity cost of an additional set of soft drinks? From an extra juice box? If the company characterized in this table produced 7 sets of 8 bottles of soda and 40 cases of 12 juices, what could be concluded about the use of available resources? Is production currently possible at a point outside the production possibilities curve? Explain your answer.
Use the graph to answer the following question. Computes Textbooks What is the opportunity cost of moving from point A to point B on the Production Possibilities Graph? A. 26 textbooks O B. 4 computers C. 7 computers O D. 39 textbooks & 7. 4 m
Below is the production possibilities table for consumer goods (washing machine) andcapital goods (tractor): Type of Production Production Possibilities A B C D E Washing Machine 0 4 8 12 16 Tractor 60 54 42 24 0 a. Show these data graphically.b. If the economy is at point B, what is the cost of one more washing machine?What is the cost of one more tractor?c. Explain how the production possibilities frontier reflects the law ofincreasing opportunity costs.