If a society is operating inside its production possibilities curve for guns and butter, then Select one: a. some economic resources are unemployed. b. to produce more butter, it must sacrifice some guns. c. to produce more guns, it must sacrifice some butter. d. consumer preferences must have changed. Oe. economic growth must occur in order to move the economy to a point on the curve.
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- Mid- sem 1. Assume that the schedule below describes the production possibilities confronting an economy. Using the information from the table? (a) Draw the production possibilities curve .be sure to label each alternative output combination (A through B) (b) Calculate and illustrate on your graph the opportunity cost of producing one CD player per week? (c) What is the cost of producing a second CD player? What might account for the differences? (d) Which point on the curve is the most desired one? How will we find out? Potential weekly pianos CD players Output combinations A 10 9 1 C 7 2 4 3 E 4 Q2: if taxes on the rich were raise to provide housing for the poor, how would the willingness to work be affected? What would happened to total output? Q3: Ghana currently allocated four (4) percent of our resources to military output. Is this too much or too little, how can we decide? Q4: Utility companies routinely ask state commissions for permission to raise utility rates. What does this…Mid- sem 1. Assume that the schedule below describes the production possibilities confronting an economy. Using the information from the table? (a) Draw the production possibilities curve .be sure to label each alternative output combination (A through B) (b) Calculate and illustrate on your graph the opportunity cost of producing one CD player per week? (c) What is the cost of producing a second CD player? What might account for the differences? (d) Which point on the curve is the most desired one? How will we find out? Potential weekly pianos CD players Output combinations A 10 9 1 C 7 2 4 3 E 4Table Zoom A country has the following production possibilities table: Resources devoted Output of clothing Resources devoted Output of food to clothing to food 100% 20 0% 80 16 20 60 12 40 9. 40 8. 60 12 20 80 14 0. 0. 100 15 a. Graph the country's production possibilities curve. Be sure to label all parts of your graph. b. Say the country gets better at the production of food only. What will happen to the production possibilities curve? Demonstrate on your graph. c. Define increasing marginal opportunity costs. Now restate the definition in your own words. 2. X-Ray Machines .w
- 2. Below is a production possibilities frontier (PPF) for Happyland, acountry that produces only two goods- wine and cheese. wine cheese a) Explain what the production possibilities frontier is and how it illustrates scarcity. b) What happens to the marginal opportunity costof cheese production in Happyland as the country increases its cheese production? (increase, decrease, unchanged or indeterminate?) Explain how you can tell this from the PPFand why it happens. c) Briefly describe two specific policies the government of Happyland could undertake to shift out their PPF in future periods. (By specific policies, I mean something they can actually do to change productivity for either or both of these goods. "Increase resources," for example, is not a specific policy. What resources and what type of policy could increase the resources used for either of these products?)1. It is primarily the basis of economic activity a. economics b. scarcity c. social science d. abundance 2. What happen to the demand for tilapia if the price of bangus will go down? a. prices of tilapia remains b. price of bangus remains c. shift to the right d. shift to the left If cruz family lessens their demand expenditures for rice because they want pandesal for their breakfast, this is a. time efficient b. taste and preference c. decrease in income d. saving for cooking gasple Choice ý the letter of the choice that best completes the statement or answers the question. 1. Which of the following is an example of lower production costs brought about by the use of technology? the delivery costs of gasoline to the consumer by diesel trucks the use of e-mail to replace slower surface mail а. b. the making of breads and pastries in local shops rather than large bakeries the importing of fresh vegetables from South America rather than using canned vegetables- с. d. 2. What is the effect of import restrictions on prices? They cause prices to drop. b. a. They cause prices to rise. They often cause prices to rise steeply and then drop. d. They usually do not have any lasting effect on price. с. 3. What do sellers do if they expect the price of goods they have for sale to increase dramatically in the future? sell the goods now and try to invest the money instead of resupplying sell the goods now but try to get the higher price for them store the goods until the…
- What are the two major ways in which an economy can grow and push out its production possibilities curve?a. Better weather and nicer cars.b. Higher taxes and lower spending.c. Increases in resource supplies and advances in technology.d. Decreases in scarcity and advances in auditing.1. Economics can be defined as: a. The science of mathematics in an economy’s context. b. A social science concerned with the production, consumption and distribution of goods and services. c. A social science concerned with tourism and all its facets. d. A subset of tourism, recreation and mathematics. 2. Which of the following will shift the demand curve for four-star hotel accommodation in New York to the right? e. A rise in the value of the US dollar against other currencies. f. A fall in incomes of consumers. g. A successful advertising campaigns. h. A terrorist threat to New York.A production possibilities curve: a. Eliminates the need to make choices regarding the use of resouces b. Can be drawn for an economy but not for an individual c. Shows the different combinations of goods that can be produced d. Shows the different combinations of inputs that can be used to produce a good
- 2. What effect does "Increasing Opportunity Cost" have on the Production Possibilities Curve? 3. What are the four categories of Resources? Give an example of each.8. What is economic?1. During the Second World War, Germany's factories were decimated and suffered many human casualties, both soldiers and civilians. How did the war affect Germany's production possibilities curve?