Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 50 units of food and 30 machines. This year it experienced a technological advance in its machine-making industry. As a result, this year the society wants to produce 55 units of food and 30 machines. Which of the following statements is true? a Because the technological advance occurred in the machine-making industry, it will not be possible to increase food production without reducing machine production below 30. b In order to increase food production in these circumstances without reducing machine production, the economy must reduce inefficiencies. c Because the technological advance occurred in the machine-making industry, increases in output can only occur in the machine industry. d The technological advance reduced the amount of resources needed to produce 30 machines. These resources could be used to produce more food.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Match 1.) Less government intervention gives people more economic freedom. 2.) Government should not control the money supply. 3.) Government intervention is necessary for stability. 4.) Competition is a regulatory force. A.) Adam Smith B.
Answers (1)
Both of the following companies are merchandisers that began operations this year. X Company Y Company Cash from operating activities $ 20,000 $ 60,000 Cash from investing activities (200,000) (100,000) Cash from financing activities 230,000 90,000
Answers (1)
Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $22.00, $10.00, $8.20 and $2.80. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends forever.
Answers (1)
According to the mandatory uniform policy provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid?
Answers (1)
An auto-parts company is deciding whether to sponsor a racing team for a cost of $500000. The sponsorship would last for 5 years and is expected to increase cash flows by $150000 per year.
Answers (1)
New Questions in Business
What is 44756 : 167 long divison
Answers (1)
You are given a choice of taking the simple interest on $100 comma 000 invested for 3 years at a rate of 5 % or the interest on $100 comma 000 invested for 3 years at an interest rate of 5 % compounded quarterly.
Answers (1)
The area in which the law of demand best applies is 1) macroeconomics. 2) social policy. 3) microeconomics. 4) political science.
Answers (1)
Suppose U = the number of adults who are unemployed; E = the number of adults who are employed; and NLF = the number of adults not in the labor force. Which expression would equal the unemployment rate?
Answers (1)
Lacy just started a gourmet chocolate bar business. She's spent months perfecting the bars from the ingredients to the wrapping. She has found a local candy store that will sell the bars, and they'll also be available online.
Answers (2)