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CHAPTER 2 Production Possibilities Frontier Framework




Question;6. Within the 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.;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?;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..;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.;10. Can a technological advancement in sector;X of the economy affect the number of people who work in sector Y of the;economy? Explain your answer.;11. Use the PPF framework to explain;something in your everyday life that was not mentioned in the chapter.;12. What exactly allows individuals to;consume more if they specialize and trade than if they don?t?


Paper#54985 | Written in 18-Jul-2015

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