Explain the relationship between the bowed-out
shape of the production possibilities frontier and the increasing
opportunity cost of a good as more of it is produced? (Minimum 150
words) (3 points)
What is the difference between quantity demanded and demand?
Explain the factors that change the demand.
(Minimum 150 words) (5 points)
Why is the production possibility curve bowed out?
Why is there an increasing opportunity cost of a good as more
of it is produced?
Explain why does an increase in supply lead to lower
prices?
As we move to the right on a bowed outward production
possibilities frontier, we see:
a) increasing labor productivity
b) decreasing labor productivity
c) increasing opportunity cost
d) decreasing opportunity cost
What is the relationship between opportunity cost and the slope
of the production possibilities frontier. What does it mean for the
PPF to be bowed-in, bowed-out, or linear? What does it mean to be
above, on, or below the PPF?
The production possibilities frontier curves show the
concepts of scarcity, choice, opportunity cost, efficiency and
economic growth. Discuss with examples.
2. Draw an increasing opportunity cost Production Possibility
Frontier and mark 1. The point that shows inefficient production 2.
Efficient Production 3. Point of production that cannot be
achieved.
3. In the following questions, draw the graph and answer in
words. (5 points each) a) Draw a demand curve for pizza and show
what happens when price of pizza falls. b) Assuming pizza to be a
normal good, show what happens when income increases. c) If beer is
a complementary...
Why is the PPF bowed outwards (instead of linear)? a) … because
there is an increasing marginal opportunity cost of producing both
goods b) … because there is a decreasing marginal opportunity cost
of producing both goods c) … because consumers prefer consumer
goods to capital goods d) …because demand for capital goods is
higher than demand for consumer goods
A country's production possibilities curve is bowed outward from
the origin. This is caused by the concept known as
A.
The law of increasing returns
B.
Ockham's Razor
C.
The law of increasing opportunity costs
D.
The law of diminishing costs
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