Chapter 2 Homework: Pgs. 55-56:
Questions and Problems: 1, 2, 3, 6; Working with Numbers and Graphs: 4, 5, 6, 8
1) A) That will decrease the PPF because of resources being destroyed. Some
labor workers may possible be killed.
B) Resources will increase therefore, increasing the PPF.
C) PPF will increase because there are more labor workers.
D) PPF will decrease because of the lack of knowledge and experience in
their field therefore slowing production.
2) A) The PPF represents the finiteness of resources implicit in the scarcity
condition by showing how the limited number of resources proves that scarcity
will always be a thing
because they cannot supply to humanities unlimited wants and needs
B) Choice can be represented because the PPF framework can help sway on
to which choices to make and which ones not to make.
C) PPF directly represents opportunity cost because it shows you what you
lose from choosing to produce more of another product
D) PPF represents whether a community is operating efficiently by showing if
it reaches its max numbers. If it does not, it is considered inefficient.
E) PPF shows unemployed resources by showcasing which resources are
not being used up is a community is working inefficiently
3) For it to be bowed outward the opportunity cost of a product needs to
continuously increase. For it to be a straight line the opportunity cost needs
to be constant.
6) Most PPFs are bowed outward because when choosing to produce more of
a product your opportunity cost (the amount you are giving up or another) is
increasing. That is the case in most PPFs.
Working with Numbers and Graphs: 4, 5, 6, 8
4) Figure 3 represents the technological breakthrough because the production
of it can increase, and Product Y was not.
5) Figure 2, it decreases because war can create a decrease in amount of
production.
6) Points I, H, and J are unattainable because they are outside the PPF. Without
an increase in resources, advancement in technology, or something else
related to increase the production those points never have the possibility of
being reached.
7) Tina should produce good X because if she were to produce Y, she would be
giving up 2 X’s for every 1 Y, which is not logical. David should produce good
Y because he is better at producing it and in turn gives up less X.