Take an example of a two-goods economy and explain the concept of opportunity cost with the help of the Production possibility curve (PPC). Also, draw a PPC and explain why any combination outside the PPC is not possible. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Take an example of a two-goods economy and explain the concept of opportunity cost with the help of the Production possibility curve (PPC). Also, draw a PPC and explain why any combination outside the PPC is not possible. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 10SQ

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Take an example of a two-goods economy and explain the concept of opportunity cost with the help of the Production possibility curve (PPC). Also, draw a PPC and explain why any combination outside the PPC is not possible. (The two-goods : cotton- oil ) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
a) What will the value of the PPF/PPC be in a two factor model with L=Labor along the horizontal axis, and K=Capital along the vertical axis? Explain b) Look at a country’s Terms of Trade (T.O.T.). It is assumed that when the T.O.T. value increases the country’s wellbeing goes up, and when the T.O.T. value declines, the country’s wellbeing is reduced. Explain.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure. On the same graph, draw two PPFs: one for Kansas and one for California. Assume Kansas can grow 10 units of oranges or 80 units of wheat. California can grow 100 units of oranges or 100 units of wheat. For both states, points in between these limits are possible. Show how the total production of wheat and oranges could be greater with specialization than with self-sufficiency. Assume that the states trade 40 units of wheat for 20 oranges. Demonstrate the gains from trade with points on your graph. 1. Explain the opportunity cost of producing 1 unit of oranges and 1 unit of wheat. 2. Draw your own graph on a piece of paper (don't download a graph from the internet or use technology to generate a graph). 3. Clearly label all axes and lines. Include all relevant information.
Take an example of a two-goods economy and explain the concept of opportunity cost with the help of the Production possibility curve (PPC). Also, draw a PPC and explain why any combination outside the PPC is not possible.
Suppose a new hormone is discovered that increases the productivity of the workers in producing beef, but does not affect the production of cabbage.How will that development change the production possibility frontier? Select one: • a. A bulge outwards of the middle while the axis interceptions remain the same. • b. No effect on the PPF. • c. A pivot outwards along the cabbage axis. • d. An even shift outwards from the origin. • e. A pivot outwards along the beef axis.
When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Candonia and Sylvania. Both countries Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure. produce lemons and coffee, each initially (i.e., before specialization and trade) producing 18 million pounds of lemons and 9 million pounds of coffee, as indicated by the grey stars marked with the letter A. Candonia has a comparative advantage in the production of lemons, while Sylvania has a comparative advantage in the production of coffee. Suppose that Candonia and Sylvania specialize in the production of the goods in which each has a comparative…
A country's production possibilities frontier will be a straight line if Group of answer choices the economy is producing efficiently. increasing the production of one good by x units entails no opportunity cost in terms of the other good. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good. the economy is engaged in trade with at least one other economy.
Because of conflict and instability in Country X, millions of its citizens emigrate to Country Y. Which of the following best explains what will happen to Country Y's production possibilities curve (PPC)? A C E It will move to a point on its PPC at which it produces only consumer goods B It's PPC will not change, but consumption of goods will decrease Its PPC will shift outward over time-- D It will move to a point inside its PPC, indicating slower growth Its PPC will shift inward over time
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…
Q)choose correct option, When a country has a comparative advantage in producing a certain good, A: the country should import that good. B: the country should produce just enough of that good for its own consumption. C:the country’s opportunity cost of that good is high relative to other countries’ opportunity costs of that same good. D: then specializing in the production of that good and trading for other goods could allow that country to consume at a point beyond its production possibilities frontier
If it is more efficient for a country to produce a mixture of all goods (a combination that contains both products on a two dimensional PPC), which statement regarding their PPC is correct? a) This curve is a concave PPC. b) This curve is a convex PPC. c) This curve does NOT demonstrate the Law of Increasing Opportunity Cost. d) This curve does NOT demonstrate the Law of Diminishing Returns. e) It is best for this economy to produce inside the PPC and NOT on the curve.
If a PPF is "bowed outward" from the origin, then which of the following can be true? (check all that apply) The opportunity cost of producing another unit of the good on the y-axis decreases in terms of foregoing units of the good on the x-axis that are given up. The opportunity cost of producing another unit of the good on the x-axis increases in terms of foregoing units of the good on the y-axis that are given up. Inputs may be specialized for different uses Each unit of labor isn't equally productive in producing every unit of each good