This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What causes the production possibility curve to be bowed out? What will be an ideal ... (Read 22 times)

Hungry!

  • Hero Member
  • *****
  • Posts: 1,071
on: Jun 29, 2018
What causes the production possibility curve to be bowed out?
 
  What will be an ideal response?

Question 2

Refer to the above figure. A price control has been set which has led to a surplus. This means that a
 
  A) price ceiling has been set at P1.
  B) price floor has been set at P1.
  C) price ceiling has been set at P2.
  D) price floor has been set at P2.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kthug

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 29, 2018
Answer to Question 1

A bowed production possibility curve indicates increasing opportunity costs. To produce more of one good, resources must be taken away from producing another good. These resources often are specialized. This implies that the resources cannot move easily from producing one good to another. The more of a good that is produced, the more it must use resources that are better suited for the other good, and the extra costs of producing another unit of the good increase.

Answer to Question 2

B


Hungry!

  • Member
  • Posts: 1,071
Reply 2 on: Jun 29, 2018
Gracias!

gcook

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
The Light Curve of a Nova The Light Curve of a Nova
Unregulated populations "J-shaped curve" Unregulated populations "J-shaped curve"
An Environmental Kuznets Curve An Environmental Kuznets Curve
At what speed does Grogzetti need to take the curve to avoid sliding? At what speed does Grogzetti need to take the curve to avoid sliding?
The age-of-onset curve for Huntington disease (HD) The age-of-onset curve for Huntington disease (HD)
Video: Vasectomy

For a complete list of videos, visit our video library