Question

Pick a country and provide an example of two major outputs from that country that would...

Pick a country and provide an example of two major outputs from that country that would be appropriate for a Production Possibilities Frontier. What would be on each axis? Would the frontier be straight or 'bowed out?' What would cause the PPF to shift? What economic concepts are demonstrated by the PPF?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Lets assume that country X can produce two goods Pizza and Sugar. PPF shows the different combinations with two goods that can be produced with available resources.

Following is diagram:

In above diagram, for increasing production of one good, we have to decrease production of another good. Shape of production possibility frontier is concave, which shows that opportunity cost is rising.

Further, if there is change in technology and it affects both goods equally, there will be right ward parallel shift in production possibility Frontier. Or technology change will shift PPF.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Instructions Students have to create two hypothetical economies with their respective Production Possibilities Frontier (PPF). Parameters:...
Instructions Students have to create two hypothetical economies with their respective Production Possibilities Frontier (PPF). Parameters: One country should be a bigger economy in both industries. Assume constant opportunity costs along each country’s PPF. Thus, there are 5 tasks to complete this assignment: 1. Create a PPF for each hypothetical economy using 5 output combinations for each PPF 2. Graph the PPFs for the two hypothetical economies from a Production Possibilities Frontier schedule 3. Calculate the opportunity costs of producing...
Suppose there are only two countries in the world: France and Italy. Suppose further that there...
Suppose there are only two countries in the world: France and Italy. Suppose further that there are only two goods in the world, bicycles (B) and computers (C). Assume that the production possibilities frontier (PPF) for both countries is linear, and can be represented by the following equations: I taly : 500 = 9C + 3B France : 100 = C + B (a) Draw each country’s PPF. What is the slope of each PPF if C is on the...
1) If Country A is absolutely better at producing everything than Country B, then there is...
1) If Country A is absolutely better at producing everything than Country B, then there is no incentive for Country A to engage in trade with Country B ( True or False?) 2)In one day Sam can produce 40 salads or 32 sandwiches. What is the opportunity cost of producing 1 sandwich?   3)If Tom has a comparative advantage in producing corn then he must also have an absolute advantage in producing corn (T/F?) 5) In one hour John can produce...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only one factor of production, Labor. In Portugal, one unit of labor can produce 1 unit of wine or 1 unit of cheese. In England, one unit of labor can produce 1 unit of wine or 2 of cheese. There are 100 units of labor in Portugal, and 100 in England. Countries share the same tastes, and there is perfect competition. 1) Fill in the...
Barnes & Noble knows that the income elasticity for books is 1.44. Based on this information,...
Barnes & Noble knows that the income elasticity for books is 1.44. Based on this information, and the information in the table, which of the following must be true? The following table displays books sold by Barnes & Noble at the Southpoint mall in January and July. January July 1,000 2,000 A. Books are inferior goods and income decreased between January and July B. Books are normal goods and income decreased between January and July C. Books are normal goods...
11. A map of the United States is an example of: Multiple Choice a model that...
11. A map of the United States is an example of: Multiple Choice a model that simplifies the complexities of the country. a theory that simplifies the complexities of the country. an exact representation of the complex details of the country. a version of the circular flow diagram. 12. In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made. Multiple Choice A. government B. market C. firm D....
Consider a Ricardian model. There are two countries called Australia and New Zealand and two goods...
Consider a Ricardian model. There are two countries called Australia and New Zealand and two goods called beer and cheese. In Australia the unit labour requirement for a beer is 6 hours and for a cheese is 12 hours. In New Zealand the unit labour requirement for a beer is 4 hours and for a cheese is 1 hour. Australia has an endowment of 3600 hours of labour. New Zealand has an endowment of 400 hours of labour. Draw a...
There are two countries, Lilliput and Blefuscu, which produce two goods: cilantro and hummus. In a...
There are two countries, Lilliput and Blefuscu, which produce two goods: cilantro and hummus. In a single year, Lilliput can produce 4,000 tons of cilantro or 4,000 tons of hummus. In the same period of time, Blefescu can produce 500 tons of cilantro or 300 tons of hummus. Show your work as you answer these questions. (a) Which country has absolute advantage in cilantro? (5%) (b) Which country has absolute advantage in hummus? (5%) (c) Which country has a comparative...
1.The sister disciplines of economics as a field of study are: Management, marketing, and accounting Sociology,...
1.The sister disciplines of economics as a field of study are: Management, marketing, and accounting Sociology, anthropology, psychology, and geography Biology, chemistry, and physics Engineering and exercise science 2.In the circular flow model of an economy, which of the following were identified as primary institutions in society? Governments Schools Hospitals All of the above 3.Which of the following constrain a nation’s capacity to produce? Natural resource, or land endowment Size and quality of the labor force (number of workers and...
1. Use the specific-factors model to answer question 1. Assume that there are two industries, agriculture...
1. Use the specific-factors model to answer question 1. Assume that there are two industries, agriculture and manufacturing. The agricultural industry uses labor and land as inputs while the manufacturing industry uses labor and capital as inputs. The production function for each good is as follows: Agriculture Production Function Land              Labor          QA            20              0                0 20              1               12         20              2               22         20              3              30         20              4              36         20              5              40 20              6               42         Manufacturing Production Function Capital        Labor             QM            20             ...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT