Question

how do you calculate production possibilities frontiers

how do you calculate production possibilities frontiers

Homework Answers

Answer #1

Production possibility frontier are not calculated, they are only a graphical representation of what is produced in the economy. they show the two good that the economy can produce with the given resources. it also shows the opportunity cost of the goods produced i.e if we produce more of one good then we have to reduce the production of other good.

An increase in the production capacity of the economy will shift the PPF to the right and a decreases will shift it to the left.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Analyze production possibilities frontiers and the implications of specialization and trade.
Analyze production possibilities frontiers and the implications of specialization and trade.
In the model of trade based on production possibilities frontiers as presented in the Mankiw text,...
In the model of trade based on production possibilities frontiers as presented in the Mankiw text, the gain from improved technology due to increased trade is not a fundamental source of the benefits to both countries. True False
In the model of trade based on production possibilities frontiers, countries can gain from trade only...
In the model of trade based on production possibilities frontiers, countries can gain from trade only if their pre-trade opportunity costs differ. True False
Production Possibility Frontiers: Corn and Rice a. Draw a production possibilities curve for your farm of...
Production Possibility Frontiers: Corn and Rice a. Draw a production possibilities curve for your farm of ten acres between growing corn and growing rice. Is there a tradeoff between these two? Why? How is the tradeoff shown in your graph? (Make sure you label you axes.) b. Is the PPF line meaningful? Can your farm produce outside (above) the line? Why or why not? Will you produce inside the line? Why or why not? c.What is the cost of growing...
1.How do you find best point on the production possibilities frontier? 2. How does opportunity cost...
1.How do you find best point on the production possibilities frontier? 2. How does opportunity cost change as the production of a good increases? 3. What does it mean to be inside the production possibilities frontier? On the frontier? Outside the frontier? 4. Do self-interest choices promote social interest? 5. If the costs are greater than the benefits, would choice would a ration person make?
How do increasing opportunity costs affect the shape of the production possibilities curve? Provide an example...
How do increasing opportunity costs affect the shape of the production possibilities curve? Provide an example that illustrates the concept of increasing opportunity costs. Include a graph or illustration to support your answer. Your response should be at least 75 words (1 paragraph) in length, plus the graph or illustration.
How does the concept of opportunity costs apply to the use of the production possibilities frontier...
How does the concept of opportunity costs apply to the use of the production possibilities frontier (PPF) as a comparative measure for output decisions made at the national level?
Below is a production possibilities table for consumer goods (butter) and capital goods (guns). Production Possibilities...
Below is a production possibilities table for consumer goods (butter) and capital goods (guns). Production Possibilities Type of Production Production Alternative A Production Alternative B Production Alternative C Production Alternative D Production Alternative E Production Alternative F Production Alternative G Butter 0 1 2 3 4 5 6 Guns 14 13 11 9 7 4 0 Graph the data provided in the table using Excel. (Hints: Type your data into an Excel spreadsheet. With your mouse, highlight the data only....
f there is international trade, then a nation's consumption possibilities are __________ its production possibilities. Select...
f there is international trade, then a nation's consumption possibilities are __________ its production possibilities. Select one: a. less than b. the same as c. greater than d. steeper than
How do you calculate sum of squares? How do you calculate effects
How do you calculate sum of squares? How do you calculate effects
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT