Author Question: Explain why Hong Kong has experienced faster economic growth than the United States. What will be ... (Read 145 times)

WhattoUnderstand · **on:** Jun 29, 2018

Explain why Hong Kong has experienced faster economic growth than the United States.

What will be an ideal response?

Question 2

If the farm adopted a new technology, which allows it to use fewer resources to fatten chickens, explain how the farm's production possibilities will change. Explain how the opportunity cost of producing a bushel of soybean will be affected.

What will be an ideal response?

diana chang · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Hong Kong chose to devote a greater proportion of its available resources to the production of capital than the United States. This allowed Hong Kong to grow at a faster rate than the United States. By foregoing consumption and producing a greater proportion of capital goods over the last few decades, Hong Kong was able to achieve output per person equal to 94 percent of that in the United States.

Answer to Question 2

The farm's PPF rotates outward; the maximum quantity of soy-beans (500 bushels) does not change but the maximum quantity of chicken increases. The opportunity cost of a bushel of soybeans increases because more chicken must be given up to produce additional soybeans.