Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 1.2, Problem 4QQ
To determine
Production possibility frontier .
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Draw a production possibilities curve
and show the impact of high
unemployment and low worker
participation.
With reference to the diagram below, a movement along this production possibility curve from X to Y means that Capital Goods 0 X Consumer Goods
A. businesses in this economy are fully exploiting economies of scale.
B. this economy is operating more efficiently.
C. this economy is using more resources.
D. an opportunity cost has been incurred.
If an economy is operating at a point inside the production possibilities curve?a.its resources are not being used efficiently. b.This is a trick question because an economy cannot produce at a point inside the curve. c.the curve will begin to shift inward. d.the curve will begin to shift outward.
Chapter 1 Solutions
Microeconomics
Ch. 1.2 - Prob. 1QQCh. 1.2 - Prob. 2QQCh. 1.2 - Prob. 3QQCh. 1.2 - Prob. 4QQCh. 1.A - Prob. 1ADQCh. 1.A - Prob. 2ADQCh. 1.A - Prob. 3ADQCh. 1.A - Prob. 1ARQCh. 1.A - Prob. 2ARQCh. 1.A - Prob. 1AP
Ch. 1.A - Prob. 2APCh. 1.A - Prob. 3APCh. 1.A - Prob. 4APCh. 1.A - Prob. 5APCh. 1.A - Prob. 6APCh. 1.A - Prob. 7APCh. 1.A - Prob. 8APCh. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8P
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Similar questions
- three factor that might cause the production possibilities curve to shift to the right or outwardarrow_forwardA production possibilities curve can shift inward if there is a. an increase in productivity b. an increase in unemployment c. an increase in the price of raw materials d. a misallocation of resources e. a natural disasterarrow_forwardWhich of the following are the assumptions of the production possibility curve? a. Two goods are produced by the economy b. Technology and skills available are constant c. All of the options d. Resources available are constant in the economyarrow_forward
- An economy's production possibilities frontier is fixed in the long run. Ā True Ā Falsearrow_forwardWhy combinations above the Production Possibility Curve are not attainable? a. It is due to unlimited resources b. It is due to inefficiency of government c. It is due to scarcity resources d. It is due to lack of technologyarrow_forwardA curve that shows the maximum amount of any two products that can be produced in an economy from a fixed resource and a fixed technology< A, Production Possibilities frontier B, Marginal Product curve C, Demand Curve D, Total Product Curvearrow_forward
- The rational range of production is between _______ and _______ units of labor.arrow_forwardA linear production possibilities curve indicates which of the following? a. Constant opportunity costs b. Decreasing opportunity costs c. Increasing opportunity costs d. Diminishing marginal returns e. Labor-intensive productionarrow_forwardIn deciding to produce a given good, an individual would always choose A. The process that uses the most capital goodsĀ B. The most productive process available C. The shortest and most productive process available D. The shortest process availablearrow_forward
- A certain production possibilities frontier shows production possibilities for two goods: pants and shirts. Which of the following concepts can not be illustrated in this model? Select one: a. the tradeoff between production of pants and production of shirts b. the effect of economic growth on production possibilities involving pants and shirts c. the flow of dollars between (i) sellers of pants and shirts and (ii) buyers of pants and shirts d. the opportunity cost of shirts in terms of pantsarrow_forwardExplain how (if at all) each of the following events affects the location of a countryās production possibilities curve:a. The quality of education increases.b. The number of unemployed workers increases.c. A new technique improves the effifi ciency of extracting copper from ore.d. A devastating earthquake destroys numerous production facilities.arrow_forwardA production possibilities curve that is a straight line represents the case of Group of answerĀ A. choices constantcosts. B. constant opportunity costs but increasing real costs. C. constant opportunity costs but decreasing real costs. D. increasingCosts.arrow_forward
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