Answer these questions and then refer to the production possibilities frontier (PPF) as an example: a....

Answer these questions and then refer to the production possibilities frontier (PPF) as an example:

a. What is an economic model?

b. What role do models play in economic analysis?

c. What is the largest potential problem with models?

Expert Solution

Each question is answered along with the reference to the ppf. In each question, after explaining the concept PPf is taken as reference.

Rahul Sunny answered 2 years ago

what important concept is illustrated with the production possibilities frontier? (PPF)

What happens to a country’s Production Possibilities Frontier (PPF) if the country faces a war or...

What happens to a country’s Production Possibilities Frontier (PPF) if the country faces a war or natural disaster such as a hurricane or an earthquake? Explain

What does it mean when society is operating inside the production possibilities frontier (PPF)?

The table below contains the Production Possibilities Frontier (PPF) data for Country ABC. It contains the...

The table below contains the Production Possibilities Frontier (PPF) data for Country ABC. It contains the maximum possible combinations of guns and butter that can be produced in a given period of time: Units of Guns (thousands) Units of Butter (kilos) 14 5 11 6 9 8 8 11 A. What is the opportunity cost of moving from producing 9 thousand units of guns to 14 thousand units of guns stated in terms of 1 unit of guns? B. Explain...

1a. What is a Production Possibilities Frontier (PPF)? Consider an economy with only two goods: guns...

1a. What is a Production Possibilities Frontier (PPF)? Consider an economy with only two goods: guns and butter. Show the tradeoff between the production of guns and the production of butter by drawing a (bowed outward) PPF (use gun production on the horizontal axis and butter production on the vertical axis). b. In what ways does the PPF reflect: i. scarcity and choice; and ii. increasing opportunity cost? c. How would the PPF be affected by a technological improvement in...

UNIT 2: PPF, TRADE, SPECIALIZATION The Production Possibilities Frontier is a simple economic model used to...

UNIT 2: PPF, TRADE, SPECIALIZATION The Production Possibilities Frontier is a simple economic model used to illustrate a complex economic reality of productive possibilities of one economy. The PPF is an economic frontier of maximum production of two (2) goods based on available resources and the state of technology. The PPF assumes the economy is using all its resources and is using them efficiently. Consider this scenario: The U.S. is productive efficient in its economy. It is highly diversified and...

production possibilities frontier (PPF) to explain and illustrate the concepts “efficiency”, “trade-off”, “opportunity cost” and “unemployment”.

Explain, in your own words, why the production possibilities frontier (PPF) is a downward-sloping curve. Also,...

Explain, in your own words, why the production possibilities frontier (PPF) is a downward-sloping curve. Also, explain why all points inside of that curve represent inefficient outcomes. Draw a market which you believe would represent the market for a cure to the current Coronavirus. Draw and explain what would happen to this market if an announcement was made that indicated the number of confirmed cases doubled over the weekend. 3. As an extension of #3, how would the approval...

Explain medical care markets at the macroeconomic level using a production possibilities frontier (ppf) where medical...

Explain medical care markets at the macroeconomic level using a production possibilities frontier (ppf) where medical care is depicted on the vertical axis and all other goods and services are depicted on the horizontal axis. What is the goal of risk sharing in medical care markets at the macroeconomic level? Namely, where do you expect to be producing relative to the ppf you depicted?

1. Briefly explain how we can use the production possibilities frontier (PPF) to explain economic growth .

1. Briefly explain how we can use the production possibilities frontier (PPF) to explain economic growth . 2. Eunhee works at a bank and receives $30,000 a year as her annual salary. She decided to quit this job and study at a graduate school for 2 years. If she gets admitted to the school, her annual cost of attending school will be the tuition of $9,000

Question