Consider the production possibilities curve

Assignment Help Business Economics

Reference no: EM131236827

Consider the production possibilities curve for a nation that can produce either consumption or investment goods. Describe and show the impact of each of the following using the PPF diagram. a. Technological advancement in the production of investment goods that has no impact on production of consumption goods. b. A major recession leads to an unusually high level of unemployment c. A massive 10.2 earthquake causes California to fall into the Pacific Ocean. d. Fundamental shift in cultural values leads to increased preference for investment goods.

Reference no: EM131236827

Questions Cloud

Demand equation for good : An MBA student has proposed the following demand equation for good Y. QdY = a + b PY + c M where: QdY = quantity demanded of good Y in millions of tons per year PY = Price of good Y in dollars per ton M = Average consumer income in thousands of dolla..

Antitrust authorities at the federal trade commission : Antitrust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of the two rival firms in the same market will increase market power. A hearing is scheduled for ..

Lower under such an agreement in long-run equilibrium : Even if firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away if there is unrestricted entry. Explain. Will price be higher or lower under such an agreement in long-run equilibr..

Distinguishing between the short-run and the long-run : Insurance agents receive a commission on the policies they sell. Many states regulate the rates that can be charged for insurance. Would higher or lower rates increase the incomes of agents? Explain, distinguishing between the short-run and the long-..

Consider the production possibilities curve : Consider the production possibilities curve for a nation that can produce either consumption or investment goods. Describe and show the impact of each of the following using the PPF diagram.

The owners would be faced with what challenges : In a 100% socialist structure, the owners would be faced with what challenges? They lose the opportunity to make and hold onto extreme profits. They assume all the financial risk if their businesses fail. They no longer can change careers because the..

Price elasticity of demand for good : A price elasticity of demand for Good X equal to -.85 implies. We also assume in macroeconomics that total expenditure is equal to total output Y=C+I+G. Given the following data, derive a formula that relates Y as a product of r (hint your result sho..

Ethical dilemmas faced by marketers in emerging markets : What are some of the ethical dilemmas faced by marketers in emerging markets? What is economic colonialism? Explain a responsible marketing practice which should be followed in emerging markets?

Would the supply curve or the demand curve shift : What are the likely consequences on the U.S. market for tobacco products for each of the events listed below? Would the supply curve or the demand curve shift? The Food and Drug Adminstration classifies tobacco as an "addictive substance.' The congre..

User Account

All Pages