Question

Do you get this @jim_thompson5910? :)

Question: Which is correct?

Answer choices A, B, C, D, and E typed inside!! :)

Answer 1

A. If you see a nation producing at a point within its PPF, its economy is using its resources inefficiently.
B. If you see a nation producing at a point outside the PPF, its economy is using its resources inefficiently.
C. If you see a nation producing at a point on it PPF, its economy is wasting resources.
D. If you see a nation producing at a point on it PPF, its production of one good may be increased without decreasing the production of any other good.
E. If you see a nation producing at a point within its PPF, the production of one good may be increased only by decreasing the production of another good.

***I think it might be B? :/ But not too sure.. what do you think?

Answer 2

if you're within the PPF, then you're being inefficient. It's impossible to be outside the PPF. If you're on the PPF, then you're the most efficient possible.

Answer 3

ahh okay!!

and oh no! :( wait so which would be true then? :/

Answer 4

I effectively just told you

Answer 5

ohhh haha oops didn't read carefully (sorry about that!!!)

so A? :O

Answer 6

yes

Answer 7

yay! thank you!! :) i'm going to type up one more problem here... i'll tag you once i finish typing it!! :D

Answer 8

A production possibility frontier would shift inward if which of the following events occurred?

A. There is a recession and many people are unemployed.
B. Many new manufacturing plants are built.
C. New technology is invented.
D. The labor force grows significantly.
E. The country invests in higher education.

****I think it's B or C? What do you think @jim_thompson5910 ? :)

Answer 9

shifting inward means what in general?

Answer 10

is this economy producing more overall? or less overall?

Answer 11

a decrease? ohhh so would it be A?

Answer 12

so producing less?

Answer 13

which means less buyers so probably a recession?

Answer 14

correct, less consumption ---> less production

Answer 15

ahh yay!! :) thank you!! :D

so kinda like a chain reaction!! :D

Answer 16

higher unemployment ---> less production
higher unemployment ---> less disposable income ---> less consumption

Answer 17

yes

Answer 18

ahh okay, will keep in mind!! :)

do you get how to explain this kind of situation? :/

if a person or country has a comparative advantage in a certain activity, what should they do to maximize their position in a larger market?

not sure how to explain this :(

Answer 19

ideally they should try to lower their opportunity costs the best they can and use their resources in the most efficient way

Answer 20

to try to gain absolute advantage

Answer 21

ohh okay so the main goal is to gain absolute advantage on top of their comparative advantage?

Answer 22

yes I think so

Answer 23

to make them the most competitive attracting the most customers

Answer 24

ahh okay thank you!! :D

Answer 25

What about this one @jim_thompson5910?

Suppose you draw a hypothetical PPF for the small island nation of Sunensurf. The economy is able to support the production of two goods, surfboards and sunscreen. Your PPF graph will have...
A. the price of surfboards on the vertical axis and the price of the sunscreen on the horizontal axis.
B. the quantity of surfboards on one axis and the quantity of sunscreen on the other axis.
C. the price of aloe for sunscreen on one axis, and the price of wood for surfboards on the other axis.
D. the price of labor on one axis, and the price of other inputs on the other axis.
E. the price of sunscreen on the vertical axis and the price of surfboards on the horizontal axis.

Would it be D? :/

Answer 26

look back at the PPF on this page

http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=law+of+increasing+opportunity+cost

Answer 27

ohh so the quantity?

would it be choice B then? :O

Answer 28

yes

Answer 29

yay! thank you :D

Answer 30

yay! thank you :D