Considering the production of maize and shirts in Botswana‚ we can use the notion of the production possibilities curves to determine levels of efficiency‚ inefficiency‚ economic growth and technological improvement. The production possibilities curve (PPC) is a graph that shows the different quantities of the two goods (in this case‚ maize and shirts) that an economy (Botswana) could efficiently produce with the limited productive resources. To be able to illustrate this simply we assume that
Premium Economics
Chapter 2: Production Possibilities Curve‚ Scarcity‚ and Development I. A Market System and Basic Economic Questions 1. In a decentralized (Capitalist) society‚ “markets” are required. This market system is a means of buyer–seller exchange‚ and does not need a physical location. The idea that self–interested market participants will make everyone better off was called ”an invisible hand” by Adam Smith‚ and creates the invisible hand argument that is used in the same way today. 2. The
Free Economics Unemployment
Production Possibility Curve Name Academic Institution Class Professor Date Production Possibility Curve The production possibility curve (PPC) is defined as a theory that highlights the factors that limit a process the difficulties of making a choice‚ and the opportunity costs associated with making that decision (Hochstein‚ 2014‚ p. 343). Any time a decision is made by a manufacturer of a good‚ or a country making exports of goods to ready global buyers‚ the best decisions need
Premium Economics United States
"Explain how production possibilities curves can be used to demonstrate the problem of unemployment‚ the effects of technological change and the benefits of economic growth."A production possibility frontier (also known as production possibility curve) represents all the possible combinations of the production of two types of goods and services that the economy can produce at any given time through graphical means. It is used to clearly demonstrate the problem of unemployment‚ the effects of technological
Premium Economics
profits from selling the new sports-activity coupe. If the value of these profits to BMW exceeds the costs of shutting down the plant‚ then BMW will shut down the plant. 2. No. This chapter discusses the benefits to a country of specializing in the production of those products for which it has a comparative advantage and trading for the other goods. Those benefits are the reduction in the relative price that consumers pay. This reduction in relative price creates gains from trade. This does not mean
Premium Economics
technological and resource mix used to produce goods? a. The what to produce question b. The why to produce question c. The how to produce question d. The for whom to produce question 2. A good or service that is forgone by choosing one alternative over another is called a (an): a. Explicit cost b. Opportunity cost c. Accounting cost d. Implicit cost 3. In the context of the production possibilities curve‚ opportunity cost is measured in: a. Changing in
Premium Economics
Explain how production possibility curves can be used to demonstrate the problem of unemployment‚ effects of technological change and the benefits of economic growth. Human wants are unlimited and resources are scarce. In order to satisfy these wants‚ all societies face the problem of allocating these scarce resources to producing the wanted products. These decisions greatly affect the economy and will contribute to the movements of growth. A graph that visually represents the results of the decisions
Premium Economics
PRODUCTION POSSIBILITIES CURVE: A curve that illustrates the production possibilities of an economy--the alternative combinations of two goods that an economy can produce with given resources and technology. A production possibilities curve (PPC) represents the boundary or frontier of the economy’s production capabilities‚ hence it is also frequently termed a production possibilities frontier (PPF). As a frontier‚ it is the maximum production possible given existing (fixed) resources and technology
Premium Economics Opportunity cost
Principles of Miroeconomics - Final Exam Instructions Please put your name and the course information on the scantron (ECON 2302 Professor J. Bikis) Please put your DBU ID number on the scantron in the area market "ID NUMBER" Please write your webadvisonr id on the back of the scantron in the area marked "WEBADVISOR ID". (This ID is the same ID that you use to get into your DBU email or into BlackBoard) Please select the best answer for each question given and fill in the respective answer
Premium Economics Supply and demand Costs
Inter-temporal Production Possibilities and Trade Instead of trading one good for another at a point in time‚ we exchange goods today in return for some goods in the future. This kind of trade is known as inter-temporal trade. Even in the absence of international capital movements‚ any economy faces a trade-off between consumption now and consumption in the future. Economies usually do not consume all of their current output; some of their output takes the form of investment in machines‚ buildings
Free Economics Investment Time