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Imagine a society that produces military goods and consumer goods, which we'll call "guns" and "butter."a. Draw a production possibilities frontier for guns and butter. Using the concept of opportunitycost, explain why it most likely has a bowed-out shape.b. Show a point that is impossible for the economy to achieve. Show a point that is feasible butinefficient.c. Imagine that the society has two political parties, called the Hawks (who want a strong military)and the Doves (who want a smaller military). Show a point on your production possibilitiesfrontier that the Hawks might choose and a point that the Doves might choose.d. Imagine that an aggressive neighboring country reduces the size of its military. As a result, boththe Hawks and the Doves reduce their desired production of guns by the same amount. Whichparty would get the bigger "peace dividend," measured by the increase in butter production?Explain.
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a racial question, too. Imagine a society that produced is military goods and consumer goods. So we'LL call them guns in butter and we have to drill a production cars possibility frontier for guns and brought her in Explain a shave and on demonstrators. Which point is tio not impression, at which point it's impossible. Also, those are questions A and B. Okay, so then I will draw her Graff with the ex anxious being water and, uh, why exist being guns till there's a trade off between producing these two goods. So the more guns we want, the fewer parts we can produce a same day our way around. So the production frontier is like something like this, and we typically trolled this Randhir is a bow shaped like a concave curve because we assumed that okay, in order to Oh, because he said a state nous here. So he ordered to produce one unit of butter. You have to give up this amount of guns in a a cz we one more in your butter A as we want to produce more and more butter extra. One unit off butter, which is the horizontal one here, forces us to give up on more guns. So but here This is steeper here because the more butter be produced. More guns we have Tio let go off. Okay, so which points are impossible? So as we look at this front here we have You know that I have just erase this. We have to know that everything outside the frontier are impossible because we don't have enough human resource or either for capital to produce this these things, these combination ofthe goods. But all that isthe with Linda. The boundaries for sorry are feasible, but which are the most efficient production combinations. These things on the frontier are the most efficient, most efficient beings that we are extract every possible resource we obtain, and we can have Amanda turned them into look which we want. And so the plank wine is the most efficient. A combination. Okay, So see, imagined that the society has two parties called the hogs and the dopes hawks one want guns and jobs once butter. So which point? Well, they Joe's So apparently the hawks, they want guns race, so they will, like, do whatever they can to produce us more guns as possible. So they don't hear about butter so their bodies can be zero. And for jobs that now let's use our blue A stoves. Ah, boo for dogs. So they want us many butter as possible and they don't care about, so they will choose thiss point. Okay, so so supposed that their aggressive neighbor reduce the size of military. So as a result, they will both hawks and doves will reduce their desired production ofthe guns. But we can. We want to know that which off the two groups get the bigger peace dividend, which is measured by the increase in barter production. So I was oversold firsthand, wised up a case of the horse so they now know that way they don't have to produce that many guns. So they decrease their gun production and they increased their border. They have better production. So the new frontier for the Hawks is like something like Nick's and then on what happened to the dogs because they care less about military comparing to the hawks. So their demand for the gun will decrease even more because they think that Oh, now the world is actually very peace. So what we have tio produce so many guns. So then they decrease a lot. Oh, gone production. So they say these extra resources to produce more butter. So on their butter We're sorry. Sorry decides, you know, God, it's just like something also contain Put it close down here. So at the end, they can produce a more butter than the Hawk group, so they are enjoying more the so called peace dividend.
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