How can I do this practice question ? 1. Draw a production possibility frontier (make the scale on both axis the same).The economy is currently producing at point A on the frontier which is at the midpoint between thevertical axis (showing public sector goods) and the horizontal axis (showing private sector goods)Mark the following points on your drawing:Point B-a point which shows production following the election which privatizes many publicsector services but maintains full and efficient employment.Point C-which unemployment is present in the economy.C. Point D-where the state takes over production of all goods and services in the economy.b.PRESENGAJUAજીતેના નામDERENDENDENGARENNESBSmedjanSAAL BUILDING PURE skaSONDEREDESIGNECOMPANIONMARTINSBERAKSHA THAPARRARAGATANBOURBUS BUPORTALABRESBORGARSIONE***BAB======HOO..…...….......Faltan TransaksonsonantsinsanoTATTORIPOTI medomspanecomasconhaccains.coBakenksanaka**********Now draw 2 new production possibility frontiers.PP - which states the position after a devastating war hits the economy.b QQ-where there is an increase in productivity in the economy such that output from thesame amount of resources increases by 50 percent in the public sector and twice thatamount in the private sector.Ï

Private goods are rival and excludable goods. This means that when one person consumes a private…

1. Draw a production possibility frontier (make the scale on both axis the same). The economy is currently producing at point A on the frontier which is at the midpoint between the vertical axis (showing public sector goods) and the horizontal axis (showing private sector goods) Mark the following points on your drawing: Point B-a point which shows production following the election which privatizes many public sector services but maintains full and efficient employment. Point C- which unemployment is present in the economy. Point D-where the state takes over production of all goods and services in the economy. C.

1. Draw a production possibility frontier (make the scale on both axis the same). The economy is currently producing at point A on the frontier which is at the midpoint between the vertical axis (showing public sector goods) and the horizontal axis (showing private sector goods) Mark the following points on your drawing: Point B-a point which shows production following the election which privatizes many public sector services but maintains full and efficient employment. Point C- which unemployment is present in the economy. Point D-where the state takes over production of all goods and services in the economy. C.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. A simple Ricardian model Consider a simple economy consisting of two countries, England and France. England has 25 workers and France has 75 workers. England can produce 4 units of grain and 2 units of cloth with each unit of labor. France can produce 1 unit of grain and 1 unit of cloth with each unit of labor. Wages per unit of labor are the same in both countries. a. Which country has the absolute advantage in each good? Which country has the comparative advantage in each good? Explain your answers. b. Construct the production possibilities frontier for each country (put grain on the x-axis and cloth on the y-axis). What is its slope? c. Assume that consumers have utility U = grain/2 . cloth/2. How much does each country produce and consume of each good in autarky? Show the consumption graphically by drawing the indifference curves into your two diagrams. d. Now allow for trade. How much does each country produce and consume of each good in this case? Draw the new production…
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When a nation's economy grows: its efficient level of production is on a production possibility frontier that is further outward than the original. its production possibility frontier has necessarily shifted inward. it has moved to a position at the interior of the production possibility frontier. it has moved to a more consumer-oriented position on its production possibility frontier. Question 33 All points inside the production possibility frontier represent: efficient production points that economies strive to reach. inefficient production points that are attainable without added opportunity costs. infeasible production points that can, however, be attained through economic growth. production points that the economy will eventually reach through economic growth.
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