3) Consider a simplified version of the Gulf Coast economy, where the region uses humans (labor...

 

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3) Consider a simplified version of the Gulf Coast economy, where the region uses humans (labor resources) and equipment (capital resources) to produce two different goods: music and oil. Using production possibilities frontiers (PPFs), illustrate how the PPF would change in each of the following scenarios. a) A hurricane destroys much of capital required for production in displaces much of the population, reducing the economy's ability to produce anything. b) A hurricane destroys much of the capital, which is required for oil production but not music production, and the people stay in their communities in the wake of the destruction. c) Advanced computer software for music production reduces the importance of major music labels and recording studios, enabling more and more people to launch music careers. d) Increased safety standards on oil refineries shuts down half of the refineries due to failure to comply. e) Rapid development leads to large population growth. 3) Consider a simplified version of the Gulf Coast economy, where the region uses humans (labor resources) and equipment (capital resources) to produce two different goods: music and oil. Using production possibilities frontiers (PPFs), illustrate how the PPF would change in each of the following scenarios. a) A hurricane destroys much of capital required for production in displaces much of the population, reducing the economy's ability to produce anything. b) A hurricane destroys much of the capital, which is required for oil production but not music production, and the people stay in their communities in the wake of the destruction. c) Advanced computer software for music production reduces the importance of major music labels and recording studios, enabling more and more people to launch music careers. d) Increased safety standards on oil refineries shuts down half of the refineries due to failure to comply. e) Rapid development leads to large population growth.

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Heres how the production possibilities frontiers PPFs would change in each scenario a A hurricane de... View the full answer