federal government should spend more on diabetes research. iii. Rising paper prices will increase book prices. iv. The price of bagels at Bruegger’s is too high. 3. Identify the effect of each of the following on the United States Production Possibilities Frontier (PPF). Does it shift inward‚ outward‚ or not at all? i. A decrease in the average length of annual vacations ii. An increase in immigration of foreign workers to the U.S. iii. An increase in the average retirement age iv.
Premium Economics Opportunity cost
Economics 101 Spring 2011 Answers to Homework #1 Due 2/2/11 Directions: The homework will be collected in a box before the lecture. Please place your name‚ TA name and section number on top of the homework (legibly). Make sure you write your name as it appears on your ID so that you can receive the correct grade. Please remember the section number for the section you are registered‚ because you will need that number when you submit exams and homework. Late homework will not be accepted so make
Premium Economics Linear equation Analytic geometry
The production possibilities (PP) curve is a graphical medium of highlighting the central problem of ’what to produce’. To decide what to produce and in what quantities‚ it is first necessary to know what is obtainable. The PP curve shows the options that are obtainable‚ or simply the production possibilities. What is obtainable is based on the following assumptions: 1. The resources available are fixed. 2. The technology remains unchanged. 3. The resources are fully employed. 4. The resources
Premium Economics Analytic geometry Derivative
affect the economy’s production possibility curve (8 marks)? The production possibility curves is a hypothetical representation of the amount of two different goods that can be obtained by shifting resources from the production of one‚ to the production of the other. This essay will take into account the two factors‚ the depletion of the natural resource and the improvement in technology and further analyse what effect they will have on a country’s production possibility curve. Initially‚ the
Premium Economics Natural resource Resource
required for HW1)) CP2. Why does the downward-sloping production possibilities curve imply that factors of production are scarce? CP2. A downward-sloping production possibilities curve shows that in order to obtain more of one good (or service)‚ another must be forgone. That is the meaning of scarcity—the situation where we are forced to choose among alternatives. CP3 In what ways are the bowed-out shape of the production possibilities curve and the law of increasing opportunity cost related
Premium Economics Analytic geometry
Summer 2013 Name: Answer key Date: SFU ID: Section: 1. Explain how three economic concepts are illustrated by the production possibility boundary. Scarcity: The production possibilities boundary (PPB) separates attainable combinations of goods from those that are unattainable. Thus scarcity is shown by the existence of some unattainable bundles of goods. Choice: Because of scarcity‚ societies
Premium Economics Price Costs
INTRODUCTION TO ECONOMICS Problem Set 1 1. Labour is the only resource in an economy with the following maximum production possibilities. (The graph is drawn as a curve rather than points under the assumption that opportunity cost is constant between options.) Option 1 2 3 4 a) b) c) d) e) f) Clothes (Tons) 50 40 20 0 Food (Tons) 0 30 70 100 What is the opportunity cost of increasing Clothes production from 20 to 40 tons? What is the opportunity cost of increasing Food output from 70 to 100 tons? Is point
Premium Economics
of the production possibilities frontier is defined as a representation of a point at which an economy is most efficiently producing the nation’s goods and services and therefore allocating all its resource in the best way possible. If the economy is not producing at the amount of estimated quantities that are indicated by the production possibility frontier that means the resource are being managed inefficiently and the production of the economy will start to slow down. With the production possibility
Premium Economics Supply and demand Microeconomics
Production Possibilities Curve (PPC) The Production Possibilities Curve (PPC) is used to show the economic concepts of scarcity‚ choices and opportunity cost. The PPC is a graphical representation showing maximum combinations of output (goods and services)‚ a nation can produce with limited economic resources in a fixed period time. Assumptions of the production possibilities curve: I. Only 2 goods will be illustrated II. The amount of resources is fixed III. State of technology
Premium Economics
economies have a production possibility curve and there any many different things that effect it. The removal of trade barriers or also known as free trade is not exempt from this list of things that affect an economies production possibility curve. Reduction in trade barriers can cause a country’s production possibility curve to shift outward. That is just one of many reasons that could cause an economy’s production possibility curve to shift outward. This production possibility curve can also
Premium Economics International trade