The production possibilities frontier (PPF) shows the various combinations of goods
QUESTION 1
- The production possibilities frontier (PPF) shows the various combinations of goods an economy can produce using all of its available resources and the best technology available. While we are more used to thinking about outward shifts of the PPF associated with growth, e.g., with technological advancements, the PPF may also shift inward. What could explain this? SELECT ALL THAT APPLY.
| an increase in consumer wealth |
| additional government restrictions on the pollution that results from plastic production. |
| a reduction in the patent protection period to no more than 2 years |
| influx of immigrant labor. |
| more secure and enforceable property rights system |
| a war that destroys a substantial portion of a nation's capital stock |
| an increase in the unemployment rate |
5 points
Kat Von D, also known as Katherine von Drachenberg, is an American tattoo artist, model, musician, entrepreneur, and television personality. She is best known for her work as a tattoo artist on the TLC reality television show LA Ink (this comes straight from Wikipedia). What most people don't know is that Kat was classically trained in piano beginning at age 6. She is, by the way, a much better pianist than I am, who have just started to learn. In short, she is a better tattoo artist (I can't draw to save my life) and a better pianist. She is, however, given her choice of job, a much better tattoo artist than she is a pianist, or we wouldn't know her from her tattooing skills. Let's assume your instructor has become a pianist...
What does economic theory have to say about these career choices? Which of the following must be true about Kat and your instructor? SELECT ALL THAT APPLY
For Kat, the opportunity cost of doing tattoos in terms of playing the piano must be smaller than your instructor's opportunity cost (of doing tattoos in terms of playing the piano). | ||
For Kat, the opportunity cost of doing tattoos in terms of playing the piano must be greater than your instructor's opportunity cost (of doing tattoos in terms of playing the piano). | ||
Relative to your instructor, Kat has an absolute advantage in both tattooing and playing the piano. | ||
Relative to your instructor, Kat has an absolute advantage in tattooing and an absolute disadvantage in playing the piano. | ||
Relative to your instructor, Kat has an absolute disadvantage in tattooing and an absolute advantage in playing the piano. | ||
Relative to your instructor, Kat has a comparative disadvantage in tattoing and a comparative advantage in playing the piano. | ||
Relative to your instructor, Kat has a comparative advantage in tattoing and a comparative disadvantage in playing the piano. | ||
Relative to your instructor, Kat has an absolute and a comparative advantage in tattoing, and an abolute advantage and a comparative disadvantage in playing the piano. | ||
Relative to your instructor, Kat has a comparative advantage in both tattooing and playing the piano. | ||
Relative to your instructor, Kat has a comparative disadvantage in both tattooing and playing the piano. |
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Rating:
/5
Solution: The production possibilities frontier (PPF) shows the various combinations of goods