What does the production possibility curve measure?
What does the production possibility curve measure?
A production possibilities curve in economics measures the maximum output of two goods using a fixed amount of input. The input is any combination of the four factors of production: natural resources (including land), labor, capital goods, and entrepreneurship.
What changed in the late 1800s that led to tremendous economic growth?
What changed in the late 1800s that led to tremendous economic growth? Five factors that spurred industrial growth in the late 1800’s are Abundant natural resources (coal iron oil) Abundant labor supply Railroads Labor saving technological advances (new patents) and Pro-Business government policies.
What is michael’s opportunity cost of a painting?
Michael’s opportunity cost is 2 sculptures for each painting he produces. How do we know this? If he devotes all of his time to sculptures, he can produce 10. If he devotes all of his time to paintings, he can produce 5….Figure.
| Output per day | ||
|---|---|---|
| Sculptures | Paintings | |
| Angelo | 6 | 2 |
What is the opportunity cost of washing dishes every night for your family not just ½ hour but what would you do with that time?
What is the opportunity cost of washing dishes every night for your family? Not just ½ hour; but what would you do with that time? Whatever you would choose to do instead of washing dishes is the opportunity cost. It is the best alternative.
What is a PPF in economics?
The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.
How did industrialization affect the economy in the 1800s?
The Industrial Revolution shifted from an agrarian economy to a manufacturing economy where products were no longer made solely by hand but by machines. This led to increased production and efficiency, lower prices, more goods, improved wages, and migration from rural areas to urban areas.
How is opportunity cost calculated?
The formula for calculating an opportunity cost is simply the difference between the expected returns of each option.
Can opportunity cost zero?
Can the opportunity cost be zero? Yes. The formula for calculating opportunity cost is to compare the net benefit of one choice with the benefit of another option. If the difference between those benefits is zero, then the opportunity cost is zero, meaning you’d get the same benefit from either choice.
What is Miles opportunity cost of vacuuming in terms of washing dishes?
What is Mike’s opportunity cost of vacuuming in terms of washing dishes? Washing 2 loads of dishes. (60/30 = 2) other over. Mike vacuums a room for 60 min and washes a load of dishes for 30 minutes.
