• “What is a production possibilities curve? What moves an economy along its production possibilities curve?...

• “What is a production possibilities curve? What moves an economy along its production possibilities curve? What factors shift the production possibilities curve? (Provide details.) What key assumption must be changed for the production possibilities curve to shift? Explain why. Illustrate your answers with graphs if applicable.

Expert Solution

Rahul Sunny answered 2 months ago

What is the difference between the production possibilities curve and the consumption possibilities curve?

What is the difference between the production possibilities curve and the consumption possibilities curve? Assume that...

What is the difference between the production possibilities curve and the consumption possibilities curve? Assume that the world consists of Norway and Sweden and that these countries do not trade with each other. There are two goods in this world: timber and mobile phones. Assume that Sweden needs 1 worker to produce a unit of timber and 2 workers to produce a mobile phone. Norway needs 6 workers to produce a unit of timber and 3 workers to produce a...

16)As we move along a production possibilities curve and acquire larger and larger amounts of one...

16)As we move along a production possibilities curve and acquire larger and larger amounts of one good (e.g., guns), the sacrifices of the alternative good (e.g., butter) become larger and larger. This is an illustration of -the law of supply. -the law of demand. -increasing opportunity costs. -decreasing opportunity costs. 17)In the former Soviet Union distributing scarce consumer goods was accomplished by -making the consumer stand in a long line for hours if not days. -None of the choices are...

What is the impact of a growth in population on the production possibilities curve (PPC) and...

What is the impact of a growth in population on the production possibilities curve (PPC) and future economic growth? Include how it might shift the PPC. How are economic resources—their availability and employment—impacted by a growth in population?

Graphically compare the Keynesian aggregate supply curve to its positions on the production possibilities curve, respectively....

Graphically compare the Keynesian aggregate supply curve to its positions on the production possibilities curve, respectively. Note the opportunity costs of government action and the effects on output and inflation. (Just do the Keynesian case…skip the classical).

Explain the production possibilities curve. What does the slope of the curve represent? What factors cause...

Explain the production possibilities curve. What does the slope of the curve represent? What factors cause the curve to move outward?

In the context of production possibilities curve (PPC), explain how an economy can achieve economic growth?

What would happen to a nation’s production possibilities curve when its expenditures on consumer goods/services =...

What would happen to a nation’s production possibilities curve when its expenditures on consumer goods/services = $2,300, expenditures on exports = $200, social security taxes = $250, corporate income taxes = $100, government spending = $700, personal income taxes = $800, expenditures on investment goods/services = $650, expenditures on imports = $350, and depreciation = $650. a. This nation's PPC would expand. b. This nation's PPC would contract. c. This nation's PPC would remain unchanged. d. There is not enough...

Explain the concept of the Production Possibilities Curve. What does it represent in terms of our...

Explain the concept of the Production Possibilities Curve. What does it represent in terms of our Macro economic system? Using your own data, draw a curve which represents the Law of Increasing Opportunity Costs and explain how those costs are considered as Increasing. Explain how the PPF is similar to the Business Cycle concept.

A) What is the Production Possibilities Curve and how does it work? Explain why each of...

A) What is the Production Possibilities Curve and how does it work? Explain why each of the following would cause the Production Possibilities Curve for a country to move outward or inward: B) The average work week increases. C) There is an increase in the retirement age. D) Immigration decreases. E) There are decreases in smoking, alcohol, and drug abuse.

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