In this case, while much of the practical application of the production possibilities frontier (PPF) model is lost when only two goods are allowed, many key insights can more easily be demonstrated due to the simplicity of the model. Because I don't. 21 In order to construct such a model, an economist would need real life data regarding countries that, Scientists, of all types, make assumptions in their models to simplify the complex world they are, View \text{Dry materials} \ldots\ldots\ldots & \text{Pounds} & \text{6,941}\\ Every two period, A: Economic analysis based on different approaches to see a specific situation to find all the possible, A: Opportunity cost of The following diagram shows its current production possibilities frontier for barley, an agricultural good, and cars, a capital good. Suppose Teresa earns $750 per week working as work as a flight attendant for Flyaway Airlines. Explain how a government shutdown will affect the variables in the national investment and savings identity. OIn order to construct such a model, an economist would need real ife data regarding countries that produce only two goods Moreover, a firm sells goods and services to a household in product markets when Pillmart Pharmacy provides the aspirin to Alyssa and Classy's Jewelry Store provides the necklace to Tim. \text{Production volume} \ldots\ldots\ldots & \text{12,500 bottles} & \text{180,000 bottles}\\ In order to construct such a model, an economist would need real life data regarding countries that only produce two goods. . Suppose South Africa produces two types of goods: agricultural and capital. (B)r All three spend half their time on eachactivity. D. a fixed purchase price per unit. Suppose Valerie earns $550 per week working as an analyst for A-Plus Accountants. For instance, if Japan is currently producing at point F and decides that it wants to produce more corn, it must produce fewer laptops. "What is the purpose of this? However, no model can include every detail of a system as complex as an, economy. How should you approach Kurt regarding his work? Recall that each point on the production possibilities frontier shows the maximum quantity of corn Japan can produce if it also wants to produce the given quantity of laptops. Experts are tested by Chegg as specialists in their subject area. She uses $8 to have breakfast at Dinah's Diner. Answered: Which of the following is true | bartleby Business Economics Which of the following is true regarding this economic model? Suppose Jacques is currently using combination D, producing one truck per day. B Data about these products follow. 40 c. Now extend the analogy between monopoly firms and unions. Since this change involves producing 5 fewer balls per day (1611=51611=5), the opportunity cost of producing the third truck per day is 5 balls per day. 62 views, 3 likes, 2 loves, 1 comments, 0 shares, Facebook Watch Videos from Eastview Baptist Church: Eastview Live \end{matrix} Using your answers to part a, identifypoints A, B, C, and D on your graph.c. Dinah's Diner pays Brian $225 per week to work as a short-order cook. C. A) The technological advance reduced the amount of resources needed to produce 30 machines. POS goods and services. In order to construct such a model, an economist would need real life data regarding countries that only produce two goods. The basic Economic problem is Shanna spends $40 to get a haircut.d. Before he bought the tool, he would have to give up one truck. In this scenario, households sell factors of production in, to the Medical Clinic and when Brian supplies his labor to Dinah's Diner. This occurs at output combination E. Tim (a household) pays Classy's Jewelry Store (a firm) $250 for necklace. Production of Y which is trading at $50 per share. She uses $10 to have. goods, means this model is generaly useless. His opportunity cost of producing a third truck per day is 5 balls per day. households and firms are both buyers.d. A key decision maker asks for the, Which of the following is the source of change if the university curriculum committee suggests two of the proposed courses for the curriculum of a new major be completely reworked? Could the shutdown affect the government budget deficit? You can specify conditions of storing and accessing cookies in your browser. Kyoko: I don't know about that. Direction: Plot the Production Possibilities Frontier of the below-data with good X on the horizontal axis and good Y on the vertical axis. Where c1+ b1+g1, A: The loss incurred or gain derived through engaging in a particular activity or choosing an, A: PPC shows the different combinations of production of two goods at a given level of resources and, A: Production possibility frontier (PPF) curve shows the different possible combination of two goods, A: A production possibility frontier (PPF), production possibility curve (PPC), production possibility, A: Ghe production possibility curve is the representation of the potential output of two goods that can, A: A country has a comparative advantage in the good which it produces at a lower opportunity cost than, A: Consider first what is the opportunity cost? 0 Households, earn their income when firms purchase or rent these factors of production to use them to produce. assumption that still allows economists to demonstrate key economic concepts. Suppose South Africa produces two types of goods: agricultural and capital. Identify the articles that correctly complete the following sentence. (D)b. Graph the production possibilities frontier for thiseconomy. a. NORM an; an . Diego Which of the following is NOT true about economics? Try Another Version Continue What is the common difference between the allocation of joint costs to ( a ) joint products and ( b ) by-products? B) Ensure that team members understand the larger goals of the company 60 a. Current Account 3. d. What other goals might unions have that make unions different from monopoly firms? 0 Before he bought the new tool, he could have produced one truck and 19 balls, so (1, 19) was a point on his initial PPF. Therefore, the $250 is a payment that flows from a household to a firm. Wages, interest and transfer payments How should you approach Kurt regarding his work? Which of the following is true regarding this economic model? 4.9 (13 reviews) The following diagram presents a circular-flow model of a simple economy. an; a What is the cost per bottle of Hi-Voltage? You can specify conditions of storing and accessing cookies in your browser. PPF Hence, as Jacques increases his production of trucks, his opportunity cost of producing more trucks increases. an; an It would be harder to find two randomly chosen economists who both agree with either of the other propositions. Demand rate is dependent on order quantity. Cons. A) Set clear expectations for each team member, with SMART goals. A) It provides you an opportunity to acknowledge the assistance of a remote team member. 0 20 40 60 80 100 100 80 60 40 20 0 SMARTPHONES (Millions) CORN (Millions of bushels) PPF Which of the following is true regarding this economic model? 1 pizza The goal of a monopoly firm is to maximize profits. Selena pays a storekeeper $1 for a quart of milk.b. Is there an analogous goal for labor unions? Note that describing a statement as positive or normative is not the same as describing it as true or false. She uses $10 to have breakfast at Dinah's Diner. In some markets, however, the supply of labor is determined by a union of workers. Based on this model, firms earn revenue when households purchase goods and services in product markets. Points located inside the production possibilities frontier, such as A and B, represent inefficient output combinations. Provide examples to support your points. FACTOR. Identify the correct sequence of step in the generation of an action potential. 4. D. Holding cost per unit per year is dependent on the selling price per unit. Valerie earns $550 per week working for A-Plus Accountants. Making these simplifying assumptions allows scientists to focus on only the most important and most generalizable components of the topic of study. Which of the following is true regarding this economic model? A: The production possibility frontier shows the different combination of two goods that can be, A: The wants and desires of the individuals in the economy are unlimited but resources available to, A: The production possibilities frontier (PPF) is a downward sloping curve which is concave to the, A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for. Use the diagram in part a to illustrate this. Which of the following is a business comparing when it analyzes the cost of buying wood desks versus the cost of buying metal desks: . Transcribed Image Text: 1. Which of the elements of this scenario represent a flow from a firm to a household? Wants and demands The following dialogue shows an excerpt from their debate: plethora realization scarcity profusion, Suppose an economy produces two goods: food and machines. C Again, consider combination D, and consider the effects of moving from there to combination E. Both before and after Jacques buys the tool, he can produce 19 balls if he devotes 6 hours to producing them and 20 balls if he devotes 8 hours to producing them. Breast cancer is the fifth most common cause of cancer death. d. Demands A10000 Production of X O The fact that there are only twe goods produced in this theoretical economy, when, in reality, economes produce many moe types goods, means this model is generally useless. An economy consists of three workers: Larry, Moe,and Curly. Because the drought does not affect the number of construction vehicles South Africa can produce, you should have left the point at 180,000 construction vehicles per year. This clearly states the thought and simplifies the understanding of economy, based on two products to be produced from same restricted resources. Because of the improvement in soil quality, more bushels of barley can be produced on any given amount of land; however, there is no reason to think that the maximum amount of cars that can be produced would change. We all laughed at the joke about_ honest man, even thou b. The simplicity of the model allows those without formal, backgrounds in economics to understand, at a high level, the economic activities that take place in an, Based on this model, households earn income when, In the circular-flow model of an economy, households own all the factors of production. \text{Bottles} \ldots\ldots\ldots & \text{Units} & \text{\$77,000}\\ This could be a flow of dollars, inputs, or outputs. z = C+I+G Circular Flow Diagram Which of the following is true regarding exchange rates? His opportunity cost of producing a second truck per day is 3 balls per day. The disagreement between these economists is most likely due to difference sin scientific judgement. Suppose Jacques buys a new tool that enables him to produce twice as many trucks per hour as before, but it doesn't affect his ability to produce balls. However, positive statements can always be supported or refuted by data, while normative statements require a larger philosophical framework to evaluate. d. Less able to be fulfills Microeconomics is the study of how prices and quantities are determined through interactions between buyers and sellers (individuals and firms) in individual markets. Creating a model with two countries that produce thousands of products would be methodologically unfeasible. a. Similarly, when you look at the horizontal axis, you see that if South Africa produces zero construction vehicles, it can initially produce a maximum of 30 million bushels of alfalfa per year. The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. which is trading at $50 per share. ) An increase in real GDP per capita implies that income is more evenly distributed in the economy. The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. 28, A: Production possibilities frontiers are used to represent the trade-off that occurs between the, A: The production possibility frontier shows the maximum amount of two goods an economy is able to, A: e. The gains are constant that is 10 books with varying opportunity costs. The output per worker increased resulting in more television sets being produced. POS \text{Bottles} \ldots\ldots\ldots & \text{12,500 bottles} & \text{180,000 bottles}\\ NORM Economics is a social, If demand becomes more elastic, which of the following will happen, as demonstrated by the graph shown here? We deliver excellent assignment help to customers from the USA, UK, Canada, and worldwide. What happens to this frontier if disease kills half of the economys cow population? A) Sandwich a pos Tariffs and import quotas generally reduce economic welfare. The convers She uses $10 to buy a box of aspirin at Pillmart Pharmacy. 80 Suppose Japan produces only two goods: corn and laptops. 25 shares of WUF stock, a. C. Holding cost per unit per year is independent of order quantity. c. Money B. This chapter has assumed that labor is supplied by individual workers acting competitively. Indeed, one survey that 93% of economists agree with this proposition. * The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. There are three certainties in this world: Death, Taxes and Homework Assignments. Most questions about economics address the central banking system and financial economics. The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts. generalizable components of the topic of study. d. Customers demand products c. Fewer people want them Consider the following production possibilities frontier model for an economy that produces only two goods: bartey and cars. Kyoko: You really think households would change their saving behavior enough in response to this to make a difference? 45 Ordering cost per order is dependent on order quantity. 0/40=0 C There are two main reasons that economists tend to disagree: differences in values and differences in scientific judgments. households are buyers, and firms are sellers.c. B800400 C600800 By grouping all individuals into households and firms and all markets into markets for goods and, services and markets for factors of production, economists can model how dollars and resources flow, back and forth among agents in the economy. . 3. Using appropriate graphs, explain how a decrease in marginal propensity to import will affect the si. This PPF is not an economic model. Your physics assignments can be a real challenge, and the due date can be really close feel free to use our assistance and get the desired result. She buys the chocolate bar as she wants it more than the drink and the crisps. 37 Which of the following is true regarding this economic model? If the MPC is 0.5 and the government increases spending by $250 billion, which of the following will be the effect this change has on the economy? In this case, the economists disagree due to differences in values because they disagree about a normative issue: the extent of the moral obligation that one human or citizen has to another. \text{Department} & \text{Driver} & \text{Cost}\\ Click below link for Answer Based on this model, households earn income when firms purchase factors in factor markets. A. \text{Bottling department}\\ . In order to best encourage their individual performance development, what should yo 2 DepartmentMixingdepartmentLiquidmaterialsDrymaterialsUtilitiesBottlingdepartmentBottlesLabelingMachinesetupDriverGallonsPoundsMachinehoursUnitsLabelsperbottleSetupsCost$2,3046,9411,422$77,0006,52520,000. For example, two economists chosen at random are most likely to agree that rent ceilings reduce the quantity and quality of available housing. Taxes O This PPF is not an economic model. When a domestic currency depreciates, what happens to the purchases of. 3 Based on this model, households earn income when firms purchase factors in factor markets. -The $400 per week Sam earns working for Dinah's Diner. 2. Explain the different points on the curve. In other words, for each point on his PPF, the vertical coordinate is the same as before, but the horizontal coordinate is twice its initial value. a. Economics is part of the humanities because it studies human decision-making. The following diagram shows its current production possibilities frontier for corn, an agricultural good, and industrial robots, a capital good. Government should Impose taxes on the cigarette. The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists demonstrate key economic concepts. b. Given that the technology is only applicable to computer production will the economy be able to produce more cell phones? Check all that apply. Because the new tool helps Jacques make only trucks, the tool does not change his output when he spends all of his time making balls. Economics is part of the humanities because it studies human decision-making. produces 2 goods, computers and cell phones. a. Sam uses $150 to purchase air travel to Hawaii from Flyaway Airlines. POS Therefore, the $200 is a payment that flows from a firm to a household. B) Ensure that team members understand the larger goals of the company The U.S. government has shut down a number of times in recent history. In contrast, disagreement due to differences in values reflect differing assessments on fairness or equity. Which of the elements of this scenario represent a flow from a firm to a household? Unformatted text preview: trying to describe. Which of the following is true regarding this economic model? Which statement below about economics is false? High level project work Actions required to manage the project Detailed project tasks Who provides gate approval, Which of the following is an example of a change in the scope constraint? c. Packet of crisps b. If, A: The production possibility frontier shows all the maximum combinations of the two goods that can be, A: The cost that depicts the cost of the next best alternative being foregone is known as opportunity, A: Production Possibilities The concept of a border refers to the idea that in a particular economy,, A: The production possibility frontier (PPF) is a business analysis curve that represents the various, A: Normative statements are those kind of statements in economics that talk about the value judgement, A: Shortage or scarcity is one of the critical ideas of financial matters. Switzerland, officially the Swiss Confederation, is a landlocked country located at the confluence of Western, Central and Southern Europe. Economists make simplifying assumptions in all economic models in order to focus on the most important economic variables in a given situation. For instance, when you look at the vertical axis, you see that if South Africa produces zero bushels of alfalfa, it can initially produce a maximum of 180,000 construction vehicles per year. Economic models The following diagram presents a circular-flow model of a simple economy. You know the difficulty of remote team members forming bonds with each other. For example, under combination D, Jacques spends 2 hours producing trucks and 6 hours producing balls. Raising the minimum wage increases the rate of unemployment. You are meeting with your new remote team for the first time. Does this vary based on the situation? It is bordered by Italy to the south, France to the west, Germany to the north and Austria and Liechtenstein to the east.. Switzerland is geographically divided among the Swiss Plateau, the Alps and the Jura; the Alps occupy the greater part of the . While many economic questions are open to debate, the field is largely in agreement on some points. 100 9th - 12th grade. 4 , gh it was immature attempt at humor. The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. Raising the minimum wage reduces the number of employment opportunities for low skilled workers. Firms, in turn, earn revenue when households buy goods and services. a; an Based on this model, firms earn revenue when households purchase goods and services in product markets. Jacques's opportunity cost of producing the second truck per day is 3 balls per day while the opportunity cost of producing the third truck per day is 5 balls per day. & \text{Hi-Voltage} & \text{EasySlim}\\ B) because the technological advance occurred in the machine making industry increases and output can only occur in the machine industry. This PPF is not an economic model. keep. Opportunity cost Why or why not? 25 shares of WUF stock, fixed resources mean there are limited and scarce resources and full employment means all, A: Production possibilities frontier shows combinations of two goods a country can produce with the, A: Point households and firms are both sellers. The disagreement between these economists is most likely due to differences in scientific judgements. G = g0 +g1Y (A)r All three spend all their time washing cars. Question #95177. The following diagram shows its current production possibilities frontier for alfalfa, an agricultural good, and construction vehicles, a capital good. You are meeting with your new remote team for the first time. Taxes are too high. C) It provides team members an opportunity to acknowledge the assistance of another team member. How do you suppose that the wage set by a union compares to the wage in a competitive market? Explain. Economic models \text{Dry materials} \ldots\ldots\ldots & \text{620 pounds} & \text{12,000 pounds}\\ Balance of Payments When we are discussing international trade, we are focusing on the flow of goods and services, as well as capital, among countries. E The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists demonstrate key economic concepts. 4). 3. Because of the flu epidemic, less labor is available for the production of both corn and industrial robots. 4). The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. Are any of the allocations calculated inpart a inefficient? Suppose an economist believes that the price level in the economy is directly related to the money supply, or the amount of money circulating in the economy. It's quite easy to prove that you are not the king of Spain, but to argue that it is wrong to kill innocent children, you must appeal to a larger moral framework. Because the drought decreases the amount of alfalfa South Africa can produce, you should have moved the point to 20 million bushels of alfalfa per year. Show theeffects of a drought. Now, suppose Jacques is currently using combination C, producing two trucks per day. Shen uses $100 to purchase tax services from A-Plus Accountants. It takes, A: The PPF's shape and its position will depend on how costly it is to keep the environment clean, that, A: The nations around the world tend to operate on the basis of the basic economic model. Explain why the production possibilities frontierhas the shape it does.d. Suppose that Jacques, an economist from a university in Arizona, and Kyoko, an economist from a school of industrial relations, are arguing over government bailouts. FACTOR The minimum wage should be raised to $15 per hour. Points located outside the production possibilities frontier, such as C and D, represent output combinations that are unattainable, given current resources and technology. Pillmart Pharmacy pays Tim $200 per week to work the cash register. POS "What is the purpose of this? Communism (from Latin communis, 'common, universal') [1] [2] is a left-wing to far-left sociopolitical, philosophical, and economic ideology within the socialist movement, [1] whose goal is the establishment of a communist society, a socioeconomic order centered around common ownership of the means of production, distribution, and exchange that . A] Real gross domestic product (GDP) measures the impact of economic growth on pollution and environmental degradation. e to acknowledge Without a bailout of severely distressed financial firms, the economy will experience a deep recession. Suppose Ana earns $750 per week working as work as a flight attendant for Flyaway Airlines. 4. In what sense is economics like a science? Resources are scarce in relation to peoples wants Which of the following statements regarding economic growth is correct? The data below shows the various production possibilities for an economy that produces two goods, cars, and television sets. B) Sandwich critical feedback between less critical feedback. Positive statements may be false (for example, "You are the king of Spain"), and normative statements may reflect the value judgments of a large majority of people (for example, "It is wrong to kill innocent children"). \text{Machine setup} \ldots\ldots\ldots & \text{Setups} & \text{20,000}\\ Suppose that Dmitri, an economist from a research institute in Texas, and Frances, an economist from a university in Massachusetts, are arguing over health insurance. No matter where you study, and no matter, Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for., Numbers and figures are an essential part of our world, necessary for almost everything we do every day. A firm's decision about the size of its new factory MICRO The effect of a cigarette tax on the quantity of cigarettes sold MICRO A) Set clear expectations for each team member, with SMART goals. The economic, A: Production possibility frontier shows combinations of goods that can be produced using all the, A: Ppc shows the possibility of production with given resources and technology . The effect of a large government budget deficit on the economy's price level MACRO Why is it important for an economy to be on its production possibilities frontier? The following dialogue shows an excerpt from their debate: Despite their differences, with which proposition are two economists chosen at random most likely to agree? a; a, 10). This change is an example of the law of increasing opportunity costs. a. Explanation: PPF model the production possibility frontier states that two types of goods can be produced, at any given time of production, and for certain resources provided.
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