Purchase Solution

PPF responses to various events

Not what you're looking for?

Ask Custom Question

How each of the following would affect the U.S. production possibilities frontier?

(a) An increase in the population of the country

(b) A war

(c) The discovery of a new oil field

(d) A decrease in the unemployment rate

(e) A law that requires individuals to enter lines of work for which they are not suited.

Purchase this Solution
Solution Summary

PPF responses to various events are discussed in this solution.

Solution Preview

The Production Possibilities Frontier (PPF) shows the maximal combinations of two goods that can be produced during a specific time period given fixed resources and technology and making full and efficiency use of available factor resources. The production possibility frontier is a graph that depicts the trade-off between any two items produced. It indicates the opportunity cost of increasing one item's production in terms of the units of the other forgone. The line describing this frontier is not straight, but is ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • Production possibilities frontier (ppf)

    One thing to emphasize not only for this section, but also for the entire course, is the PPF represents a model of the economy. Models are highly simplified representations of a theory about actual events.

  • Economics: Production possibilities frontier.

    Explain which events would cause the economy to move from point A to either a point inside the curve, another point on the curve, or a point outside the curve. See the attached file for the solution in a Word doc.

  • Modeling the Cold War with the PPF

    459373 Using the PPF to model the Cold War We can use the PPF model to analyze an "Arms Race" between nations to understand and interpret important political events in history.

  • Scarcity And Choice: The Production Possibilities Frontier

    Thus, the PPF illustrates the concept of scarcity – the fact that our resources are inadequate to satisfy our ever increasing wants.

  • Growth and the PPF

    (Growth and the PPF) Use the production possibilities frontier (PPF) to demonstrate economic growth. a.

  • Various Problems on Externalities

    (c) The government increases tax collection: Productivity declines as the tax rate increases, as people choose to work less. Thus the PPF is expected to shrink.

  • Various Questions on Microeconomic Theory

    Hence rising taxes are expected to reduce productivity and shrink the PPF. (d) Public schools decrease college tuition: Lower tuition implies more people come to schools.

  • production possibility frontier for one resource

    What could be done to move the economy to a point on the ppf? First you need to determine the total quantities of each good that 100 laborers can produce. That gives us 500 units of food or 1000 units of music.

  • two types of goods: productive and non-productive.

    See the accompanying attachment for the change in PPF. Now in the long run the impact is more subtle. To see why get back to the two goods I mentioned earlier: productive and non-productive.

View More Related Solutions