43. Look at the following production possibilities curve illustrating the possibilities in Sluggerville for producing bats and/or peanuts with the existing level of resources and technology. (p. 12-20) (a) Show a point that would indicate unemployed resources in Sluggerville. U (b) Draw a new curve that illustrates the results of improved technology in the production of bats, but B no change in the production efficiency of peanuts. (c) Show a point that would indicate a point that is currently unattainable in the production of peanuts G and bats in Sluggerville. Learning Objective: 01-06 Production possibilities model and increasing opportunity costs Learning Objective: 01-07 Economic growth; present choices; and future possibilities Level: Medium McConnell - Chapter 01 #43 Other: Pick-up 44. Explain how each event affects production possibilities. (p. 16-20) (a) The population becomes more educated over time as the number of high school dropouts falls and the number of college graduates rises. (b) The unemployment rate declines from 8 to 6 percent of the labour force. (c) Businesses and government are unable to solve a major computer problem, thus reducing economic efficiency and national output. (d) Advances in telecommunications and new technology significantly contribute to economic growth over time. (e) The Federal government decides to allocate more resources to national defence. (a) Improvements in the basic education of the labour force typically contribute to an increase in productivity. The production possibilities curve should move outward. (b) Unemployment means that there is inefficient use of existing resources. Production moves from a point inside the production possibilities curve toward the frontier. (c) The most likely answer is that the production possibilities curve shifts inward. It would also be possible that there is movement from the frontier of the production possibilities curve to an interior point. Both answers indicate that there is less economic inefficiency in the economy. (d) Advances in telecommunications and new technology significantly contribute to economic growth over time. (e) There will be movement along the existing production possibilities curve toward more defence goods at one axis from all other goods at the other axis. Learning Objective: 01-07 Economic growth; present choices; and future possibilities Level: Medium McConnell - Chapter 01 #44 Other: Pick-up
43. (p. 12-20) Look at the following production possibilities curve illustrating the possibilities in Sluggerville for producing bats and/or peanuts with the existing level of resources and technology. (a) Show a point U that would indicate unemployed resources in Sluggerville. (b) Draw a new curve B that illustrates the results of improved technology in the production of bats, but no change in the production efficiency of peanuts. (c) Show a point G that would indicate a point that is currently unattainable in the production of peanuts and bats in Sluggerville. Learning Objective: 01-06 Production possibilities model and increasing opportunity costs Learning Objective: 01-07 Economic growth; present choices; and future possibilities Level: Medium McConnell - Chapter 01 #43 Other: Pick-up 44. (p. 16-20) Explain how each event affects production possibilities. (a) The population becomes more educated over time as the number of high school dropouts falls and the number of college graduates rises. (b) The unemployment rate declines from 8 to 6 percent of the labour force. (c) Businesses and government are unable to solve a major computer problem, thus reducing economic efficiency and national output. (d) Advances in telecommunications and new technology significantly contribute to economic growth over time. (e) The Federal government decides to allocate more resources to national defence. (a) Improvements in the basic education of the labour force typically contribute to an increase in productivity. The production possibilities curve should move outward. (b) Unemployment means that there is inefficient use of existing resources. Production moves from a point inside the production possibilities curve toward the frontier. (c) The most likely answer is that the production possibilities curve shifts inward. It would also be possible that there is movement from the frontier of the production possibilities curve to an interior point. Both answers indicate that there is less economic inefficiency in the economy. (d) Advances in telecommunications and new technology significantly contribute to economic growth over time. (e) There will be movement along the existing production possibilities curve toward more defence goods at one axis from all other goods at the other axis. Learning Objective: 01-07 Economic growth; present choices; and future possibilities Level: Medium McConnell - Chapter 01 #44 Other: Pick-up