Question: Explain why a movement from a point inside a production possibilities frontier to the production possibilities frontier is described as a free lunch and a

Explain why a movement from a point inside a production possibilities frontier to the production possibilities frontier is described as a free lunch and a movement along a production possibilities frontier is described as a tradeoff.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Question 1 If a graph has a line that shows the quantity of flat-screen televisions sold in the last five years, it is known as a pie chart. a time-series graph. a demand curve for outsourcing. a...

A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents A ) an infinite opportunity cost. B ) a free lunch. C ) a tradeoff....

Question 1 Use the table below to answer the following questions. Table 5.2.1 This table shows the answers given by interviewees to the Labour Force Survey. Person A This person is looking for work...

Multiple Choice Questions 1. An economic model is a. A mechanical machine that replicates the functioning of the economy. b. A fully detailed, realistic description of the economy. c. A simplified...

QUESTION 1 Which of the following is NOT considered a component of government spending in calculating GDP? a. the cost of the federal prison system b. the cost of building a new road c. payments to...

1)Time lags can limit the effectiveness of, and complicate, stabilization policy. When conducting fiscal policy, which of the following lag types poses the biggest problem for policy makers?Part 2 A....

If there is unemployment in an economy, then the A. economy is producing at a point inside the production possibilities frontier B. production possibilities frontier must be bowed inward OC. economy...

Specialization and international trade will Multiple Choice O move a nation to a point inside its production possibilities frontier. allow a nation to consume beyond its production possibilities...

Final_Exam_Macro Question 1 (2 points) Purchasing-power panty theory does not hold at all times because many goods are not easily transported and the same goods produced in different countries may be...

Which of the following statements is correct? Group of answer choices An increase in unemployment shifts the economy further inside its production possibilities frontier. An increase in productivity...

Regarding IRC Section 107, how many annotations are listed in the following services? a. Standard Federal Tax Reporter, Commerce Clearing House b. United States Tax Reporter, Research Institute of...

Consider a mixture of air and gasoline vapor in a cylinder with a piston. The original volume is 40 cm3. If the combustion of this mixture releases 950. J of energy, to what volume will the gases...

Who are the main actors in the US Consumer Credit Card Market Issuers Merchant liquidators Network providers Cardholders

1. What effect does changing the mass on the spring have on the frequency of the spring? Why do you think this is true? (Both explain and back it up with numbers from your experiment!) 2. What effect...

2. Why do behavioral economists consider it helpful to base a theory of economic behavior on the actual mental processes that people use to make decisions? Why do neoclassical economists not care...

LO8.3 Relate how prospect theory helps to explain many consumer behaviors, including framing effects, mental accounting, anchoring, loss aversion, and the endowment effect.

LO8.2 Discuss the evidence for the brain being modular, computationally restricted, reliant on heuristics, and prone to various forms of cognitive error.