Technological improvement modify

Assignment Help Business Economics

Reference no: EM136775

Q1. Suppose that there are only 2 inputs i.e. labor and natural resources which produces 2 goods i.e. movies and gasoline with no development in society's expertise over time. In additional suppose that natural resources are being quickly depleted. What would happen to Production Possibility Frontier over the time? Elucidate how would invention as well as technological improvement modify your answer? Graph the PPF for each scenario to illustrate.

Q2. Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion. If disposable income increases to $14 billion, what is the new level of consumption?

Reference no: EM136775

Questions Cloud

Expected rate of return on investment : Determined by the ability to find, attract, keep, develop, and tap into the most talented workforce that can be assembled.

Elucidate implicit costs and the business profit : A woman managing a photocopy establishment for $25,000.00 per year decides to open her own duplicating place.

Demand and supply curves : A large school of sharks is reportedly seen by beach-goers at the beaches of Melbourne.

Consumption of fossil fuels : In your opinion should our government impose price floors and/or price ceilings in our economy.

Technological improvement modify : Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion.

Investment spending aggregate demand potential output : To what extent does educational planning in the policy decision ought to be guided by economic considerations

Central bank lowered the federal funds rate : Free zone would happen if the central bank lowered the federal funds rate and buy securities on the open market.

Dominant strategy for athletes : A competitive advantage furthermore earns a life span income of $6 million moreover the non-steroid user earns $1 million.

Committee meeting of the united nations : Suppose that you are in a committee meeting of the United Nations

User Account

All Pages