Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 2, Problem 9SQ
To determine
The implication of increase in the productivity of crop in the economy.
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The economy was at point A producing 100X and 200Y. It moved to point B where it produces 200X
and 300Y. It follows that
point A may have been a point below the economy's production possibilities frontier (PPF), while
point B may lie on the PPF.
the economy's PPF could have shifted outward and point B was a point on the economy's old
PPF
the economy has moved from one point on its PPF to another point on the same PPF.
4. Economic growth and PPCS
The blue (inner) curve on the following graph shows the current production possibilities curve (PPC) for the economy of Econoland, and the green
(outer) curve shows the PPC for Econoland next year if the economy were to operate at point B today. That is, investment choices today impact the
growth of the economy, and thus the PPC for next year.
PPC
Next Year
PPC
Today
CAPITAL GOODS
CONSUMPTION GOODS
Refer to the accompanying figure. If this economy were currently operating at point D, then in order to make more movies:
A
Movies (number per year)
B
D
Milk (gallons per year)
the first productive resources to switch to making movies should be those with the lowest opportunity cost of making milk.
no productive resources would need to switch from making milk to movies because each resource should continue to be
used according to its comparative advantage.
no productive resources would need to switch from making milk to movies because point D is already efficient.
the first productive resources to switch to making movies should be those with the highest opportunity cost of making
milk.
Chapter 2 Solutions
Micro Economics For Today
Ch. 2.6 - Prob. 1YTECh. 2.7 - Prob. 1GECh. 2 - Prob. 1SQPCh. 2 - Prob. 2SQPCh. 2 - Prob. 3SQPCh. 2 - Prob. 4SQPCh. 2 - Prob. 5SQPCh. 2 - Prob. 6SQPCh. 2 - Prob. 7SQPCh. 2 - Prob. 8SQP
Ch. 2 - Prob. 9SQPCh. 2 - Prob. 10SQPCh. 2 - Prob. 11SQPCh. 2 - Prob. 12SQPCh. 2 - Prob. 1SQCh. 2 - Prob. 2SQCh. 2 - Prob. 3SQCh. 2 - Prob. 4SQCh. 2 - Prob. 5SQCh. 2 - Prob. 6SQCh. 2 - Prob. 7SQCh. 2 - Prob. 8SQCh. 2 - Prob. 9SQCh. 2 - Prob. 10SQCh. 2 - Prob. 11SQCh. 2 - Prob. 12SQCh. 2 - Prob. 13SQCh. 2 - Prob. 14SQCh. 2 - Prob. 15SQCh. 2 - Prob. 16SQCh. 2 - Prob. 17SQCh. 2 - Prob. 18SQCh. 2 - Prob. 19SQCh. 2 - Prob. 20SQ
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