Chapter 2, PRODUCTION POSSIBILITIES FRONTIER Video Solutions, Microeconomics

Problem 1

Describe how each of the following would affect the U.S. production possibilities frontier: (a) an increase in the number of illegal immigrants entering the country, (b) a war that takes place on U.S. soil, (c) the discovery of a new oil field, (d) a decrease in the unemployment rate, and (e) a law that requires individuals to enter lines of work for which they are not suited.

Kevin Corkran-Itagaki

Numerade Educator

05:49

Problem 2

Explain how the following can be represented in a PPF framework: (a) the finiteness of resources implicit in the scarcity condition, (b) choice, (c) opportunity cost, (d) productive efficiency, and (e) unemployed resources.

Crystal Wang

Numerade Educator

05:24

Problem 3

What condition must hold for the production possibilities frontier to be bowed outward (concave downward)? To be a straight line?

Mihir Nayar

Numerade Educator

02:37

Problem 4

Give an example to illustrate each of the following: (a) constant opportunity costs and (b) increasing opportunity costs.

Ameer Said

Numerade Educator

01:47

Problem 5

Why are most production possibilities frontiers for goods bowed outward (concave downward)?

Daniel Cisneros

Numerade Educator

05:49

Problem 6

Within a PPF framework, explain each of the following: (a) a disagreement between a person who favors more domestic welfare spending and one who favors more national defense spending, (b) an increase in the population, and (c) a technological change that makes resources less specialized.

Crystal Wang

Numerade Educator

05:24

Problem 7

Explain how to derive a production possibilities frontier. For instance, how is the extreme point on the vertical axis identified? How is the extreme point on the horizontal axis identified?

Mihir Nayar

Numerade Educator

02:39

Problem 8

If the slope of the production possibilities frontier is the same between any two points, what does this imply about costs? Explain your answer.

Kevin Corkran-Itagaki

Numerade Educator

01:22

Problem 9

Suppose a nation's PPF shifts inward as its population grows. What happens, on average, to the material standard of living of the people? Explain your answer.

Vaibhav Jain

Numerade Educator

Problem 10

Can a technological advancement in sector $\mathrm{X}$ of the economy affect the number of people who work in sector Y of the economy? Explain your answer.

Check back soon!

02:34

Problem 11

Use the PPF framework to explain something in your everyday life that was not mentioned in the chapter.

Caleb Fink

Numerade Educator

03:29

Problem 12

What exactly allows individuals to consume more if they specialize and trade than if they don't?

Jennifer Stoner

Numerade Educator