Consider the figure at the right. This economy moved from production possibilities boundary A to production possibilities boundary B because O A. the opportunity cost of hot dogs in terms of books increased. O B. the technology used to produce books improved while the technology used to produce hot dogs remained unchanged. O C. there has been growth in productive capacity. O D. there has been a decline in productive capacity. O E. the opportunity cost of books in terms of hot dogs increased. Quantity of Books PPBA Quantity of Hot Dogs PPBB Q

Consider the figure at the right. This economy moved from production possibilities boundary A to production possibilities boundary B because O A. the opportunity cost of hot dogs in terms of books increased. O B. the technology used to produce books improved while the technology used to produce hot dogs remained unchanged. O C. there has been growth in productive capacity. O D. there has been a decline in productive capacity. O E. the opportunity cost of books in terms of hot dogs increased. Quantity of Books PPBA Quantity of Hot Dogs PPBB Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Save A production possibilities frontier (PPF) is ou O A. a curve that shows the potential productive capabilities of the frontier (defined as the area outside of cities) of a developing economy. O B. a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology. O C. a curve showing the generally attainable combinations of two products that may be produced with all planned or potential, yet undeveloped technology. O D. a curve that illustrates the demand of two goods for the average consumer.
The sharp rise in housing prices from 2003 to 2005 was driven by a high level of housing. Select the correct answer below: O supply of O demand for O loans for O none of the above In 20 hours, Japan can produce 70 bushels of corn. In 14 hours, Japan can produce 60 bushels of wheat. What is the opportunity cost of producing 1 bushel of corn in terms of bushels of wheat? Assume Japan experiences constant opportunity costs. Round your answer to two decimals. Hint: Calculate how much of each good can be produced in 1 hour, then solve for the amount of foregone wheat when choosing to produce a bushel of corn. Provide your answer below: bushel(s) of wheat If a national economy runs a trade surplus, the trade sector will involve a(n). of financial capital. Select the correct answer below: inflow outflow O shortage balance
When new and better ways of producing all goods and services are discovered or when the quantity of capital increases, O A. the opportunity cost of all goods decreases O B. our economy grows, but we still face scarcity and opportunity cost O C. the economy moves along its production possibilities frontier O D. the production possibilities frontier shifts inward e Text Pages Grapher Get More Help -
A production possibilities frontier (PPF) is O A. a curve that shows the potential productive capabilities of the frontier (defined as the area outside of cities) of a developing economy. O B. a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology. C. a curve showing the generally attainable combinations of two products that may be produced with all planned or potential, yet undeveloped technology. O D. a curve that illustrates the demand of two goods for the average consumer.
Quantity of Guns Production Possibilities Boundary Economy A 2 Quantity of Butter Consider the figures above. In Economy B, the opportunity cost of making O A. butter in terms of guns is higher than in Economy A. O C. butter in terms of guns is decreasing. E. guns in terms of butter is decreasing. Q Quantity of Guns Production Possibilities Boundary Economy B 7- 1 Quantity of Butter Q M OB. butter in terms of guns is increasing. O D. butter in terms of guns is lower than in EconomyA.
All of the following basic economic questions deal with microeconomics EXCEPT: a. How is the supply of goods allocated among the members of the society? O b. Is the economy's capacity to produce goods growing over time? What goods and services are being produced and ion what quantities? O d. By what methods are goods and services being produeed? C. All of the following economic questions deal with microeconomics EXCEPT: a. Are the country's resources being fully utilized or are some lying idle? O b. How is the supply of goods allocated among members of the society? c. Is purchasing power being eroded because of inflation? Od. Is the economy's capacity to produce goods growing over time?
Bushels of Beans 20,000 15,000 4,000 10,000 32,000 40,000 Bushels of Wheat The above figure is referred to as a Select one: a. production possibilities curve. O b. scarcity-shortage curve. O c. opportunity curve. O d. trade-off curve.
The consumption possibilities frontier shows O a. a nation's opportunity cost of producing different goods for consumption. O b. possible mbinations of goods that residents of a nation consume at different income levels. O c. a nation's possible combinations of how much of one good exchanges for another. O d. the difference between the most that consumers would pay for a good and the actual amount they pay. possible combinations of goods available as a result of specialization and exchange. O e. a nation's bike 2 A H bike 2.jpg bike jpg.jpg * H a 5 6 & 7 + 00 8 f10 Save
Table 3-20 Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate. Minutes Needed to Make 1 Bushel of Wheat Pound of Beef Brad 10 12 Theresa 6 10 Refer to Table 3-20. What is Brad's opportunity cost of producing one bushel of wheat? O a. 5/6 pound of beef O b. 6/5 pounds of beef O c. 3/5 pounds of beef O d. 5/3 pounds of beef - Icon Ke
The production possibility curve shows all the following except O a. Economic growth O b. The law of demand O c. The supply curve of 2 goods O d. The law of increasing opportunity cost O e. Inefficiency in production
Suppose that there are 10 million workers inCanada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. a. What is the opportunity cost of producing acar in Canada? What is the opportunity costof producing a bushel of wheat in Canada?Explain the relationship between the opportunity costs of the two goods. b. Draw Canada’s production possibilities frontier. If Canada chooses to consume 10 millioncars, how much wheat can it consume without trade? Label this point on the productionpossibilities frontier. c. Now suppose that the United States offers tobuy 10 million cars from Canada in exchangefor 20 bushels of wheat per car. If Canadacontinues to consume 10 million cars, howmuch wheat does this deal allow Canada toconsume? Label this point on your diagram.Should Canada accept the deal?
The figure shows the production possibilities frontier for a country. If the economy is operating at point B, then the opportunity cost of another million gallons of milk is Ice cream (millions of gallons per year) O A. 1 gallon of ice cream for a gallon of milk. O B. 4 gallons of ice cream for a gallon of milk. O C. zero because after producing another million gallons of milk then zero gallons of ice cream are produced. 4 D. 3 gallons of ice cream for a gallon of milk. E. 1/3 of a gallon of ice cream for a gallon of milk. 4. Milk (millions of gallons per year)