Production Possibility Frontiers ,sociology homework help

User Generated

eyuvqny

Other

Description

1,000 to 1,250 

Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil CAN produce 100,000 units of clothing per year and 50,000 cans of soda. The United States CAN produce 65,000 units of clothing per year and 250,000 cans of soda. Assume that costs remain constant. For this example, assume that the production possibility frontier (PPF) is a straight line for each country because no other data points are available or provided. Include a PPF graph for each country in your paper.


Complete the following:

-What would be the production possibility frontiers for Brazil and the United States?

-Without trade, the United States produces AND CONSUMES 32,500 units of clothing and 125,000 cans of soda.

-Without trade, Brazil produces AND CONSUMES 50,000 units of clothing and 25,000 cans of soda.

-Denote these points on each COUNTRY’s production possibility frontier. 

-Using what you have learned and any independent research you may conduct, which product should each country specialize in, and why?


To assist in your thinking and discussion, additional questions to consider include:

-What is the labor-intensive good?

-What is the Marginal Rate of Transformation impact?

-What is the labor-abundant country?

-What is the capital-abundant country?

-Could trade help reduce poverty in Brazil and other developing countries?

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Please find attached the completed task. Thanks.In case of questions and clarifications please contact me.

1

Running head: PRODUCTION POSSIBILITY FRONTIER

Comparative Analysis of Production Possibility Curves between Brazil and the U.S.
Name
Institution

2

PRODUCTION POSSIBILITY FRONTIER
Comparative Analysis of Production Possibility Curves between Brazil and the U.S.

3

PRODUCTION POSSIBILITY FRONTIER

Interpretation
In the above graphs, comparison is made between possible combinations of clothing and soda in
both Brazil and the United States given fixed available resources per unit time and the
production technologies available. Both the economies can be said to be efficient when operating
along the production possibility frontier PPF1 meaning that it would be impossible to produce
more of either clothing or soda without decreasing the production of the other.
An economy producing along the PPF1 is said to efficient in its production as at any such point;
more of either clothing or soda can be produced only by producing less of the other.
To add on, if either of the country’s economy is operating below the curve (A), the economy
would be said to be operating inefficiently because it could reallocate resources in order to

4

PRODUCTION POSSIBILITY FRONTIER
produce more of both clothing and soda or some resources such as labor and capital are sitting
idle and could be fully employed to produce more of both goods.
Given the nature of the graphs in both the economies w...


Anonymous
Just the thing I needed, saved me a lot of time.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags