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Sunday, January 11, 2015
Production Possibilities Curve
Click on the title link to find an excellent article on the Production Possibilities Curve and Frontier. The way this weeks blog will work is that I will post a question from the article. The first person to post will answer my question, and then leave a question of their own from the article. The next person to post will answer that question then write one of their own and so on and so on.
Question #1
Why do most world religions teach their adherents to have an attitude of gratefulness?
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Most world religions teach their adherents to have an attitude of gratefulness because of the abundance of natural resources that humans use to build their societies/economies. There are many resources available for humans to use, countless resources, and religions teach that humans should be grateful because human society would be nothing without the resources.
ReplyDeleteMy Question:
What is scarcity, and how is this vital to our economy?
This comment has been removed by the author.
DeleteScarcity is an economic principle in which limits our options and necessitates that we make choices. Because “we can’t have it all”, we must decide what we will have and what we must forgo. It is vital to our economy because in every decision of what we will have, we must sacrifice the opportunity of getting something else.
ReplyDeleteWhy do Economists use the notion of a societal production possibilities frontier?
They use the notion of a societal production possibilities frontier to illustrate concepts of scarcity, tradeoffs, choice, full employment, and efficiency. This notion is demonstrated by the use of a graph.
DeleteWhat should a societal production possibilities frontier graph look like if showing a material that is not as suited for a project as compared to another material
It must be a bowed-out shaped graph if showing a material that is not as suited for a project as compared to another material.
ReplyDeleteMy question: What do technological progress lead to? Explain.
Technological progress can lead to an increase of productive capacity. Resources can be more effectively changed/moved/converted to outputs, and generally make processing advanced.
DeleteMy question: Why are tradeoffs so important? Give an example not found in the text.
Samantha Chan
DeleteTradeoffs are important because we live in a world of scarcity. By having tradeoffs, we can maximize the few materials we have at the smallest cost. For instance, say need to do an assignment at 2 AM. You will have to trade off your sleep to do an assignment but you will receive a better grade for turning it in on time.
My question: In the gun/butter example of the text, why is it that the point where the PPF hits the horizontal/vertical axis is NOT ideal?
In the gun/butter example of the text, the point where the PPF hits the horizontal/vertical axis is not ideal because it needs to include other decisions such as future possibilities.
ReplyDeleteMy question: what do productive activities lead to? (Examples given in text)
Productive activities lead to resource depletion or degradation. The intensive use of fossil fuels is now depleting petroleum reserves, degrading air quality, and contributing to global climate change.
ReplyDeleteMy question: What does the author mean by "Efficient resource allocation"?
When the author mentions "efficient resource allocation," he means that an efficient process is one that uses the minimum value of resources to achieve the desired result. Put another way, efficiency is achieved when the maximum value of output is produced from a given set of inputs. In an efficiently run economy, the resources used in the society’s production processes are allocated within enterprises, and across enterprises and spheres of the economy, in such a way that each resource is deployed where it contributes most to desired production.
ReplyDeleteMy question: In the article, what does figure 3 show?
"Figure 3 shows a production/maintenance frontier, which illustrates the tradeoff between resource-depleting kinds of production and resource maintenance activities (the latter including both conservation and investment)."
ReplyDeleteMy question: What type of production activity is often balanced and may not add to or deplete the resource vase. I.e agriculture/ forestry
Productive activities that contribute an ongoing flow of outputs without drawing down the stock of capital resources. These are usually sustainable production activities based on renewable resources.
DeleteMy Question: Is it important to get the most production from our resources from right now only or should we plan ahead and why?
It is more important for us to get the most production from our resources now than later on in the future. It is much safer to use the resources that we have right now to the best of our ability because we do not know what the future lies ahead, and we do not know if in the future the resources we used to use will end up being useless, so it is best for us to use those resources while we still can.
ReplyDeleteMy Question: Would it be a good idea to completely sacrifice one resource for another one?
Completely sacrificing one resource for another would not be a good idea. In order to be successful you need to not be dependent upon one thing. If that one resource does not do well or somehow becomes useless the whole system collapses.
DeleteMy question: what types of choices or events, good or bad, can make the economic environment better or worse?
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DeleteChris Abraham
ReplyDelete2nd
One choice that can make the economic environment better or worse are taxes. Varying tax rates can bring in more money for the government to spend, but if set too high, will cause unrest and lack of spending from the general population. Additionally, employment rates can also change the economy for the better or worse. If people don't have jobs, they wont be spending money, and therefore, our economy will have a huge strain placed on it.
My Question: How does marginal cost and marginal benefit relate to each other?
Jacob Toy
ReplyDelete4th Period
Marginal benefit is the gain you receive for doing anything one more time. Marginal cost is the additional cost you incur to produce one more unit. People act on certain decisions because the people believe that the marginal cost is less than the marginal benefit. For example, the jungle in southern Mexico was burned was the marginal cost and the marginal benefit is the land will be used for agriculture. The people believed the marginal cost is lower than the marginal benefit.
My Question: How does timing affect what a society decides to produce?
Luke Chacko
ReplyDelete6th period
Timing affects what goods are produced since people demand certain products during certain events. For example, people want bullet proof vests during wars, so corporations produce bullet proof vests. When it is peaceful, other products such as movies are made since leisure activity can progress since society is bored and demands entertainment.
My question: What can corporations do to keep an efficient relationship between resources used and product amount?
In order to keep an efficient relationship between resources used and product amount resources should be used in areas where it can yield the best results for the desired production. Essentially corporations should try to use the least amount of resources they can to where it does not outweigh the benefit or surpass a profitable outcome.
ReplyDeleteMy Question: Give a brief description of the three socially important requirements that production possibility should meet?
1.No involuntary unemployment or undesired idle productive capacity
ReplyDeleteThis involves not having underproduction or under allocation of resources because you do not want to be within the production possibilities curve but rather booming out of it.
2.Application of optimal technology and social organization
This is basically utilizing technology to help gain further yields and also motivating your workers to increase productivity and liveliness.
3.Efficient resource allocation
This merely states the definition of economics: scarcity. You want to make the most out of what you have. You must allocate your resources the proper way.
Question: In what periods of time through history has there been a under allocation of resources and unemployment?
Lillian Wang
ReplyDeletePeriod 2
Should the economy be operating in line with the PPF, there are at least three assumed parameters: (1) full employment, (2) economic efficiency, (3) technological constancy. Therefore, at any time that the economy does not meet all three of these requirements, that signifies either an under allocation of resources and unemployment. Commonly, times of economic downturn indicate the economy operating below full employment, making it less efficient and impossible to meet the PPF. In history, the Great Depression was definitely one of the most prominent displays of a time when the economy was operating under full employment and therefore not fully employing its access to resources.
My question: What could cause the expansion of the PPC and how would it be shown graphically?
Emigdio Escobedo
ReplyDeletePeriod 2
Did you mean PPF? If so, then an increase of resources with employment as close to 100%, and a broader market of consumers will force a large scale expansion of the PPF, therefor it is clearly visible the efficiency of the PPF graphically.
My Question: How do natural capital resources work and benefit a country in a capitalist economy?
Joe Thomas
ReplyDeletePeriod 4
Natural capital resources are resources of a nation that are obtained through natural systems, such as trees and water. These provide raw materials for people to use and turn into products, and that helps businesses in a capitalist economy grow.
My question: Is there a way to harvest these natural resources rapidly without drastically harming the environment.
A way to harvest these resources rapidly without drastically harming the environment, I think, would be to presently reallocate more resources to producing capital goods so people can working on inventing ways of harvesting those natural resources without too many spillover costs on the environment. However, producing less consumer goods may cause people to feel less motivated to actually invent something that will increase their production, unless the demand rises to harvest more resources to where that demand kind of creates its own supply. Nonetheless, focusing the most on future goods may increase the prospects of less harm because of advances in technology focusing more on the lowest-input cost for the lowest-output cost. It could be possible.
ReplyDeleteHow is it advances in technology can contract the production possibilities curve at a certain moment in time?
Amy Krauhs
Period 4
Felix Chang
ReplyDeletePeriod 4
Technological advances tends to increase the capacity of the ppc because new technologies can be more efficient in allocating resources into outputs. If the production of the product requires more resource depletion than it puts in, then in theory, the ppc will contract.
Why is it important to determine which combination of outputs is optimal for an economy?
Alan Pham
ReplyDeletePeriod 2
It is important to determine the combination of outputs for the specific economy because if the economy wants to rebuild and think of the future, they would lean toward the production of capital goods instead of consumer based. So they would focus on the environmental resources. Questions need to be asked by the economy like "if they have to think of the future?" or "what do we need now?'.
Question: What is opportunity cost?
This comment has been removed by the author.
DeleteThis comment has been removed by the author.
ReplyDeleteOpportunity cost is the loss of potential gain from other alternatives when one alternative is chosen. In other terms, the benefits you could have gotten if you took an alternative action.
ReplyDeleteQuestion: Describe certain differences between a command system and a market system.
Mackenzie Boudreau
2nd period
Karen George
ReplyDelete4th period
In a command economy the government makes decisions about economic plans, products, and prices where as in a market economy the business individuals themselves decide prices and products that are made.
Question: If a point was within the possibilities curve, what should be done to move it back to the possibilities curve?
Michelle Pacheco
ReplyDelete6th Period
The amount of products that was made and the amount of scarce resources that they have left
Question: What´s the importance of intensive use of fossil fuels?
Madeline Alcock 6
ReplyDeleteIt's now depleting petroleum reserves, degrading air quality, and contributing to global climate changes.
Question: How come the term "full employment" does not necessarily mean everyone working age in the area/economy has a job?
Karyn Aguneri
ReplyDelete2nd period
People may choose not to work, or to work less than full-time. However, if people involuntarily stay unemployed for a significant period of time, or involuntarily work less than full-time or work at jobs that fail to make good use of their skills, we would say that there is unemployment or underemployment.
Question: What does figure 2 show?
Gage Roberts
ReplyDelete4th period
Figure 2 shows a previously unachievable point being reached by advancements in production and resource availability.
Question: How does marginal cost/benefit and oppurtunity factor into the graphs shown in the article?
Opportunity Cost*
ReplyDeleteMichael Okon
ReplyDeletePeriod 4
Marginal benefit factors into the graphs when deciding whether or not to get one more of the good and how it will be beneficial for the goal. Opportunity cost factors into the graphs when one good is being gained while the other good is being lost.
Question: What is Marginal Cost?
Wesley Andrade
ReplyDeletePeriod 2
In economics and finance, marginal cost is the change in the total cost that arises when the quantity produced has an increment by unit. That is, it is the cost of producing one more unit of a good.
Question: What is the significance of the shape of the production possibilities curve?
Jacqueline Gann
ReplyDeletePeriod 2
The shape of the production possibilities curve reflects the increasing opportunity cost of making one product instead of another. Opportunity cost tends to be inconsistent in that it will increase or decrease as the curve continues as opposed to being constant.
Why would producing more capital goods as opposed to consumer gods be helpful to a economy?
Timothy Krauhs
ReplyDeletePeriod 6
Producing would be produced more because they are used to increase and fix production of goods while consumer goods are not used to help production
What can depleted resources that can be used as primary resources lead aired farm land be reused for?
Aired farm lands can be reused for many purposes such as new vegetation land, windmill power as electric generators, or the land could be full of oil underground. The depleted resources of fossil fuels can be renewed with unused aired farm lands.
ReplyDeleteQ: Does international trade help with the problem of economic scarcity?
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ReplyDeleteYes, international trade helps with the problem of economic scarcity if specialization is in use. With specialization, countries use their scarce resources to produce just a small range of products in high volume.
ReplyDeleteQuestion: What does figure 1 show?
figure 1 shows society's production possibilities frontier. the graph expresses the trade-off over time theory. As you select different points along the PPF you see that the more you get of one good, the less you can have of another.
ReplyDeleteQuestion: what does figure 3 show
Figure 3 shows a production and maintenance frontier, which shows the tradeoff between resource-depleting kinds of production and resource maintenance activities
ReplyDeleteQuestion: In figure 2, which point on the graph demonstrates inefficiency and why
Point C demonstrates inefficiency since the point lies on the left side of the possibilities productions curve. An under employment of resources is being consumed, possibly from unemployment or the land resources are not being combusted at their maximum potential.
ReplyDeleteQuestion: What precise combination of outputs, such as guns and butter, or health and highways, should society choose to produce?
Society can have a combination of bread and cars. What is one way that society can have a shift like in figure 4.
ReplyDeleteSociety can have a shift as shown in the figure by increasing the supply of resources, improving the quality of resources, and through the technological advancements pertaining to it.
ReplyDeleteWhat is you opinion on which is better for society in terms of a economy focused on now vs. later in comparison to the article?
Zoheb Hirani
ReplyDeletePeriod 4 (Bring up the heezy)
In response to Twinkle's awesome question, I think that an economy is better focusing on NOW. Because, like, I want stuff now, ya know? Who cares about tomorrow? YOLO.
What is another example you can think of that illustrates the possibility curve of a society?
Elyssa Buntzel
ReplyDelete4th p
Another example would be the productuon curve of stoves and ovens. This would illustrate the trade off between two appliances that society implements.
Why is the production possibility curve bowed out the way that it is?
because of law of increasing opportunity costs.
Deletewhat is the absolute advantage?
Muizz Soomar
ReplyDelete6th Period
Absolute Advantage is the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.
What do points to the left, on the curve, and points to the right of the PPF stand for???
The points on the left of the curve represent unemployment while the points of the right represent situations that are impossible.
ReplyDeleteWhen would it be good to see high rates of unemployment on the Production Possibilities Curve?
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ReplyDeleteLandon Wells
ReplyDelete4th Period
Its only good to see high rates of unemployment on the production possibilities curve right before a war, because we are then able to easily relocate jobs to fit the war effort.
What type of production activities do not deplete or add to the resource base?
James Mai
ReplyDelete6th Period
Agriculture and forestry processes may be sustained and do not deplete nor do they add to the resource base.
In a hypothetical situation, using the first graph, what would it take for point B to go to point A?
Patrick Pecson
ReplyDeletePeriod 6
Less resources go into Output 2 and more resources go into output 1
My question: What does pint D on the first graph symbolize?
This comment has been removed by the author.
ReplyDeleteReuben Kuruvila
ReplyDeletePeriod 4
Point D symbolizes the unemployment of some resources.
What do some argue that advances in technology will do?
Some argue that advances in technology will always push out the production possibilities frontier (PPF) more than resource depletion will pull it in.
ReplyDeleteMy question: what does a production possibilities frontier illustrate?
DeleteAxel Cuypers
ReplyDelete4th Period
Some argue that innovation in thought is what truly advances society technologically, By surrounding ourselves with those who access more efficient methods of problem solving, advances will inevitably occur and thus cause production to become quicker, safer, and more cost effective.
My question is- After said advancements are completed, what will happen to those who have undergone functional unemployment?
Justin Adame
ReplyDeletePeriod 2
It will always push out the PPF as in Figure 2 more than resource depletion will pull it in as in Figure 4.
What does Point D illustrate?
Amber Alex
ReplyDeletePeriod 4
Point D illustrates a case of inefficiency or wasteful unemployment.
My question: With society's rich and abundant resources, why do economists emphasize the notion of scarcity?
Ayesha Wahid
DeletePeriod 2
Even with all the available resources, not everything socially desirable can be accomplished. At least not all at once.
My question: What is macroeconomics centrally concerned with?
Martin Nguyen
ReplyDeletePeriod 4
Resources are not unlimited
My question: Why do advances in technology push out PPF more than resource depletion pulls it in?
Because it is a resource-maintaining type product of production.
ReplyDeleteWhat do you believe was the biggest advancement in technology this decade?
Michelle Dang
ReplyDelete6th Period
There have been many recent technological breakthroughs this decade. The most prominent one that stands out to me are self driving cars.
My question: Should society always strive to produce the most of a product that their resources allow them? If not, when are acceptable times to underemploy?
Frankie Smith
ReplyDeletePeriod 6
Society shouldn't always strive to produce the most of a product that their resources allow them because it could cause a depletion in their resources, nor should there be any unemployment. Instead resources should go into creating new technology to increase production in the future.
Q: In figure 2, which point is the most ideal for a high level of maintenance and lower levels of resource-depleting production?
Gerard Barrientos
ReplyDeletePeriod 2
Figure B would be the most ideal spot for a high level of maintenance and a lower level of resource-depleting production, due to the statistics the graph provides.
Q: Considering figure 2, if a there is a decrease in the amount of resource-depleting production, what will inevitably happen to the amount of maintenance that takes place?
Keanu Florence
ReplyDeleteIn Figure 2 if there is a decrease in the amount of resource-depleting production the amount of maintenance that takes place will also be reduced.
How is the resource depleting production related to the amount of maintenance taking place ?