l Sprint effect on th9: 54 AM frontier to a line with a positive slope shift our
ID: 1140213 • Letter: L
Question
l Sprint effect on th9: 54 AM frontier to a line with a positive slope shift ourward for all of the following reasons excqpt one Which is the possilbilities frontier is usually a bow-shaped curve instead of a straight line o illastrate the concepts of scarcity and prices with a bow-shaped curve it makes i asier t thas it is with a straight line carly acoists bepan drawing them in this way and the convention has continued si omuy reaches a maxsimum and then declines NESO AVe t perfectly adaptable to the production of all goods e the otir will shift outward over time a primanily awared by the government in a system of pure capitalism b primanily anwered by markets in a command cconomy facal by all coamis rogaediess of their wealth dasn bave to be answared by economies possessing great wealth e cannot he illstrated by the eccnomic concept of the production possibilities froatier 4 The coc qastisn of what weill be prodaced is 5An ccmic system st anwcr the thre ecomic questions to the satisfaction of everyone in society b. muitt iln members ofsociety to gain an unfair advantage when answering the mu choose pure capitalism to adequately answer the three economic questions 1 isa. ofxcial natt tms and mechanisms organized to answer the three conomic an ddro probliems of scarcity only by embracing the social institution of private property %. A a der capitalism the average citizen is always wealthier than in socialist economies átrpalngfonre between capitalist and socialist (or cornrnard) comenes is that in socialist economies and is centralized in c socialist do not decision making is omand ecmumigaer capitalism while it is centralized in nvible handdesaribed by Adam Smith refers to allocative role of markets and market forces npotance of govemment intervention and central planning actions of saccesful entrepreneurs in directing 37. The d role of momopolized inbustries in leading the nation e value of religious belie in creating an ideal economyExplanation / Answer
32.
A Production possibility curve (PPF) gives the different combination of output that a country can produce using all of its resources efficiently. Any point on the production possibility curve represents the efficient allocation of resources. The slope of the PPF gives the opportunity cost of producing one good relative to other. The PPF has a negative slope because as the production of one good increase, we have to give up the production of another due to limited resources.
The factors that causes PPF to rise is any force that either increases the technology that produce more output out of existing labor or increase in the amount of resources. Unemployment denotes suboptimal production under the PPF threshold, then an decrease in unemployment does not shift PPF.
The correct option is: (a)
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33.
The slope of the PPF gives the opportunity cost of producing one good relative to other. The PPF has a negative slope because as the production of one good increase, we have to give up the production of another due to limited resources. The bow down shape of the PPF is due to the fact that resources are limited and substituting one good for another increases the cost of producing good relative to other. That is opportunity cost of producing one good rises relative to other. Thaus the slope of the PPF is not constant rather increases as one moves along a curve from upper corner to down. Hence, it gets a bow down shape.
Then the correct option is: (a)
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34.
The economies of the world face the problem of scarcity and choice. The scarce resources must be allocated in such a way that the optimal mix of output can be produced. The optimal mix of output is the amount of different goods and services produced by the country that will maximize the welfare and the demand of the country given resources. Then each economy faces the three fundamental question of economics: what to produce, how to produce and for whome to produce regardless of their resources or wealth.
Therefore, the correct option is: (c)
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