Google launched Google Docs&Spreadsheets, a free word processing software allows multiple users to collaboratively edit the same document online. This feature is expected to increase productivity for all workers. Assuming that curve AB represents the production possibility curve for the economy before this innovation, which best reflects the impact of Google Docs&Spreadsheets on the economy?
Added by Milagros F.
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Curve AB represents the economy's production capabilities before the introduction of Google Docs & Spreadsheets. Show more…
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Aarya B.
Some economists argue that the apparent slowdown in productivity growth in the United States in recent years is a measurement problem resulting from the failure of GDP to capture the effects of many recent innovations, such as cloud computing. James Manyika, head of technology at McKinsey 8 Company, argues that for many of these innovations, "we have all these benefits but we're not paying for them." a. Before the arrival of the Internet, people looking for facts, such as the population of France or the salary of the president of the United States, had to go to the library to look them up. Now people can find that information in a few seconds with a Google search. Are the benefits to you of being able to do a Google search included in GDP? Briefly explain. b. Does your answer to part (a) indicate that the slow- down in U.S. productivity growth in recent years is just a measurement problem? What other information would you need to arrive at a definite answer?
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A production possibilities table for DVDs and computers is shown below. Point G is an example of an inefficient point, while point F is an example of an unattainable point. b. Does the economy above demonstrate the law of increasing opportunity cost? Yes Production Alternatives Type of Production A B C D E Computers 0 20 40 60 80 DVDs 80 70 55 35 0 a. Show these data graphically, and then identify a point that indicates an inefficient use of resources and a point that indicates an unattainable combination of goods. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total)
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