The accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces... When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point. How many more rubber hoses do they now produce per day than before? Quantity of rubber band balls 200 180 160 140 120 100 Rubberland's Production Possibilities 80 A 60 40 20 0 0 10 20 20 30 40 50 60 70 Quantity of rubber hoses PPF 80 80 more hoses per day 90 90 100

Suppose the graph below shows Gilligan's daily production possibilities curve for coconuts and fish. If Gilligan gathers 3 Ibs of coconuts each day, then what's the maximum amount of fish he can catch in a day? 9. 8. 6. 4 1 0 1 2 3 4 5 6 Fish (Ibs/day) 04 Ibs of fish 4.5 lbs of fish 6 lbs of fish Tenannat ha datarminat Coconuts (Ibs/day)

Consider the production problem discussed in class in which 24 labor hours and 4 machinehours are to be allocated between food (x) production and wine (y) production. Suppose theproduction functions for x and y are as follows:Also, suppose the preferences of the agents are given by:Finally, suppose the MRT is given bywhere x and y denote, respectively, the aggregate quantities of food and wine produced.For each of the following allocations, determine whether they are (i) feasible and (ii) Paretoefficient. If they are inefficient, explain intuitively how it is possible to make someone betteroff without making the other person worse-off.a. ((14,2),(10,2),(5,10),(23,18))b. ((8,2),(16,2),(5,14),(11,18))c. ((14,2),(10,2),(14,21),(14,7))

86) An economy unit of agricutural output raquires 0.L'unit of ag ristural input and agriultural industy and a teatile industry. Each has 9n 0.1 unit of textiles inputs. Each unit of textiles output requires o.1 unit of agricul tural imput and 0:2 unlt of textiles input. a Write the technoligy matrix for this b) If surpluses of S units of agrlualhural products and15 units of texti le s ave desired, final the gois poluchion of each industry econdny. .

E D C B In the graph above, the shift from curve 'B' to curve 'C' can be attributed to the- O Rising cost of raw materials O Price of a complimentary good decreasing O break-through of new technology O decline in average annual income

Carol needs to decide how to spend her wealth on  sh and chicken.For Carol, 1 lb of  sh is equivalent to 2 lb of chicken. Her preferences2Intermediate Microeconomics NYUAD, Spring 2023can be represented by the utility functionu(x; y) = 2x + ywhere x is the quantity of  sh (in lbs) and y is the quantity of chicken(in lbs). The consumption set is R2+.(a) Draw two typical indi erence curves for Carol, one correspondingto a utility level of u1 and one corresponding to a utility level u2,where 0 < u1 < u2. Make sure you label the slope of the indif-ference curves and the intercepts with the horizontal and verticalaxes.(b) Suppose the price of  sh is $1:5 per lb and and the price of chickenis $1 per lb. Carol has $20 to spend on  sh and chicken.(i) Draw Carol's budget set, labeling the slope and the interceptpoints clearly.(ii) How much  sh and chicken will Carol choose to purchase?

If 10 million toy cars are sold. which means that: The production of toy cars is currently at an inefficient level, and to reach efficiency more should be produced. From the data given it is impossible to tell if toy cars are being produced at the efficient level. O The production of toy cars is currently at an inefficient level, and to reach efficiency less should be produced. The production of toy cars is currently at the efficient level. IF 30 million toy cars are sold, - vwhich means that: The production of toy cars is currently at an inefficient level, and to reach efficiency more should be produced. O From the data given it is impossible to tell if toy cars are being produced at the efficient level. The production of toy cars is currently at the efficient level. The production of toy cars is currently at an inefficient level, and to reach efficiency less should be produced. The optimal allocation of resources would result in the production of toy cars.

Suppose you observed that the consumption of organges increased sharply last year, however thet total consumer expenditure on oranges did not change. Did a supply shift, demand shift or both cause this? explain using graphs

Figure 1 The production possibility frontier ABCDE is a production possibility frontier. It shows the different combinations of goods which can be produced if all resources are fully and efficiently utilised. The economy can produce at any point on the line. It cannot produce at G because the PPF shows the maximum that can be produced. It can produce within the PPF,05 such as at F, but less will be produced than the maximum possible. Non-manufactured goods 50 40 30 20 10 0 A 10 B Ti C 20 30 Manufactured goods G D E 40

Consider Justin who makes $1,400 per week and just won a ‘set for life’ lottery ticket whichinvolves a fortnightly payment of $10,000 for 20 years. Currently he works 35 hours per week. Nowdo the following: • Illustrate the effect of the lottery win on Justins budget constraint using a fully labelleddiagram where i) the horizontal axis represents the hours of free time per week, and ii) thevertical axis represents Justins weekly consumption. • Illustrate on the same diagram Justins optimal decisions before and after the lottery winalong with his indifference curves. • Based on your diagram, discuss whether Justin will quit his job.