The Production Possibilities Curve (PPC) is a model widely used in economics to explain various economic...
Fantastic news! We've Found the answer you've been seeking!
Question:
![](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2022/08/6308fd5fa3b3f_1661533531141.jpg)
Transcribed Image Text:
The Production Possibilities Curve (PPC) is a model widely used in economics to explain various economic problems and theories especially the trade-offs associated with allocating resources between the productions of two goods. The PPC can be used to illustrate the opportunity cost, efficiency. inefficiency, economic growth, and contractions. This concept is also helpful to explain the central problems of what, how and for whom to produce. China is one of the fastest growing economy in the world. The country is blessed with large number of human resources and capital. China produces variety of consumer goods and export it to different part of the world. Let us suppose that China produces two commodities, cotton and wheat. We suppose that the productive resources are being fully utilized and there is no change in technology. The following table gives the various production possibilities. The Chinese government has made innovation a top priority in its economic planning through a number of high-profile initiatives, such as "Made in China 2025," a plan announced in 2015 to upgrade and modernize China's manufacturing in 10 key sectors through extensive government assistance in order to make China a major global player in these sectors. However, such measures have increasingly raised concerns that China intends to use industrial policies to decrease the country's reliance on foreign technology (including by locking out foreign firms in China) and eventually dominate global markets. Cotton(in 000 quintals) Wheat (in 000 quintals) Production Possibilities A B C D E F 0 1 2 3 4 5 15 12 9 5 0 i) Illustrate the PPC of China in a graph based on above information. (2 marks) ii) Explain how the concept of PPC is useful for the allocation of resources in an economy like China. (2 marks) iii) How the concept of PPC is useful to address the problem of "how to produce" in a country like China? (2 marks) iv) Suppose China want to increase the production of wheat from 5000 quintals to 12000 quintals. What is the opportunity cost of this decision? (2 marks) v) Discuss the strategies that Government of China has formulated for faster economic growth. (2 marks) The Production Possibilities Curve (PPC) is a model widely used in economics to explain various economic problems and theories especially the trade-offs associated with allocating resources between the productions of two goods. The PPC can be used to illustrate the opportunity cost, efficiency. inefficiency, economic growth, and contractions. This concept is also helpful to explain the central problems of what, how and for whom to produce. China is one of the fastest growing economy in the world. The country is blessed with large number of human resources and capital. China produces variety of consumer goods and export it to different part of the world. Let us suppose that China produces two commodities, cotton and wheat. We suppose that the productive resources are being fully utilized and there is no change in technology. The following table gives the various production possibilities. The Chinese government has made innovation a top priority in its economic planning through a number of high-profile initiatives, such as "Made in China 2025," a plan announced in 2015 to upgrade and modernize China's manufacturing in 10 key sectors through extensive government assistance in order to make China a major global player in these sectors. However, such measures have increasingly raised concerns that China intends to use industrial policies to decrease the country's reliance on foreign technology (including by locking out foreign firms in China) and eventually dominate global markets. Cotton(in 000 quintals) Wheat (in 000 quintals) Production Possibilities A B C D E F 0 1 2 3 4 5 15 12 9 5 0 i) Illustrate the PPC of China in a graph based on above information. (2 marks) ii) Explain how the concept of PPC is useful for the allocation of resources in an economy like China. (2 marks) iii) How the concept of PPC is useful to address the problem of "how to produce" in a country like China? (2 marks) iv) Suppose China want to increase the production of wheat from 5000 quintals to 12000 quintals. What is the opportunity cost of this decision? (2 marks) v) Discuss the strategies that Government of China has formulated for faster economic growth. (2 marks)
Expert Answer:
Related Book For
Posted Date:
Students also viewed these marketing questions
-
This question is about using the production possibilities curve to analyze trade-offs. Tesla assembles sedans and SUVs and has an 8-hour day. The following table shows the trade-offs Tesla faces in...
-
The production possibilities curve shows the tradeoff between housing and all other goods. (a) If the current mix of output is at point A and the optimal mix of output is at point C, does a market...
-
The production possibilities curve is shifting to the right and as a consequence we attain economic growth. What is the reason?
-
Suppose \(x\) is a linked-list Node. What is the effect of the following code fragment? \[x \cdot \text { next }=x \cdot \text { next } . \text { next; }\]
-
Analyze each transaction listed in the table that follows and place X's is the appropriate columns to indicate the transaction's classification and its effect on cash flows using the indirectmethod....
-
Consider the data presented in Exercise 14.20. (a) Determine whether the reaction is first order or second order. (b) What is the rate constant? (c) What is the half-life?
-
How many more edges must be included with the dashed edges to create a spanning tree? A student has been asked to construct a spanning tree for Graph \(O\), as shown in the figure. The dashed lines...
-
The situations that follow pertain to Rule 101 of the AICPA Code of Professional Conduct as it relates to family relationships. Indicate whether each situation violates the Code and which provisions...
-
Please answer the required 1 - 5
-
1. Which process should VBB choose to produce?? 2. How much would VBP be willing to pay for the testing that is currently offered, for each batch?? 3. Would we be considered a perfect test, at twice...
-
What is the purpose of Schedules M-1 and M-3? What is an affiliated group? What is an affiliated group allowed to do? What are the benefits of filing a consolidated tax return? Are all corporations...
-
What proactive measures can organizations take to address systemic sources of stress, such as toxic work environments, bullying, harassment, and discrimination, and how can leaders foster a culture...
-
Is the custodial model more appropriate for organizing prisons that operate at different security levels? What model should be used to organize a minimum security prison?
-
Provide a full 5 year forecast given the following: ABC Ltd had sales this year of $36,333 which are expected to increase for the next 2 years at 4% and 2% for the following 3 years. ATO is expected...
-
3. Create a "TEST" class based on the following UML diagram. -name: String -age: int TEST -weight: double -height: double +TEST(name: String, age: int, weight: double, height: double) +TEST(name:...
-
Provide an example of Hard Technology as is relates to creating deliver of goods and services. How can hard technology achieve competitive advantage?
-
Consider the following function.f(x) = x/9 + 7(a) Find the critical numbers of f. (Enter your answers as a comma-separated list.)x = 0(b) Find the open intervals on which the function is increasing...
-
Independent random samples of sizes n1 = 30 and n2 = 50 are taken from two normal populations having the means 1 = 78 and 2 = 75 and the variances 21 = 150 and 22 = 200. Use the results of Exercise...
-
In Figure 7.1, (a) What is the highest price the monopolist could charge and still sell fish? (b) What is total revenue at that highest price? (c) What happens to total revenue as price is reduced...
-
The United Farm Workers want strawberry pickers to join its union. It hopes then to convince consumers to buy only union picked strawberries. Will such activities raise picker wages? Increase...
-
In Figure 11.8 does the price level increase or decrease when (a) AD shifts leftward? (b) AS shifts leftward? Figure 11.8 (b) Supply shifts |AS, ASg (C) ASIAD shifts (a) Demand shifts AS AS Ez | ASo...
-
What is the difference between public relations and advocacy?
-
Explain the meaning of the terms, learning before doing, learning while doing, and learning after doing. Is one more important than the others?
-
What are the key relationships for a CEO?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App