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What nation's production possibilities curve is constructed under the assumption that?
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Does unemployment move outside the production possibilities frontier?
The production possibilities frontier is a curve illustrating the various ratios of goods that can be produced by a nation when that nations economy is at maximum productivity, using all resources (including labor). To be at maximum productivity there must be full employment. When there is not full employment (unemployment) the country cannot be on it's PPF, let alone beyond it. The nations economy is represented by a point within, or under, the curve.
Should two countries use a production possibilities curve to maximize the trade between them?
A production-possibilities frontier (PPF) can be used to determine comparative and absolute advantages between two nations, which will determine who trades what and if a nation should exploit an advantage. Typically the two PPF's (not necessarily curves) are plotted along the same graph. See the graph in the link below for an example of two nations trading fish and coconuts.PPF's determine what different combinations of products will maximize efficiency (production on the line is optimal; inside the line is inefficient and outside the line is unattainable). They cannot, however, determine how trade might be maximized. It may not be in the interest of one or both nations to simply maximize trade; rather, the nations need to decide what to trade in what quantity. A PPF of each nation will help make the optimal decision that is mutually beneficial given both parties are properly self-interested.
Which resource or factor of production is the only one that nations can significantly increase in the short-term?
Capital is the only resource or factor of production that nations can significantly increase in the short term.
What do nations do with the extra products of over production?
they go up into space.
Does GDP accurately reflect the nations welfare?
The gross domestic product, GDP, does not accurately reflect the nations welfare. It does provide an indication of the nation's economy, but it is only one of the component's of the well-being of a country. The GDP does not take into account household production, excluded production, and negative production.
What compromise was reached concerning assumption of state debts and the site of the nations's capital?
Assumption Compromise
Does unemployment move outside the production possibilities frontier?
The production possibilities frontier is a curve illustrating the various ratios of goods that can be produced by a nation when that nations economy is at maximum productivity, using all resources (including labor). To be at maximum productivity there must be full employment. When there is not full employment (unemployment) the country cannot be on it's PPF, let alone beyond it. The nations economy is represented by a point within, or under, the curve.
Should two countries use a production possibilities curve to maximize the trade between them?
A production-possibilities frontier (PPF) can be used to determine comparative and absolute advantages between two nations, which will determine who trades what and if a nation should exploit an advantage. Typically the two PPF's (not necessarily curves) are plotted along the same graph. See the graph in the link below for an example of two nations trading fish and coconuts.PPF's determine what different combinations of products will maximize efficiency (production on the line is optimal; inside the line is inefficient and outside the line is unattainable). They cannot, however, determine how trade might be maximized. It may not be in the interest of one or both nations to simply maximize trade; rather, the nations need to decide what to trade in what quantity. A PPF of each nation will help make the optimal decision that is mutually beneficial given both parties are properly self-interested.
Which resource or factor of production is the only one that nations can significantly increase in the short-term?
Capital is the only resource or factor of production that nations can significantly increase in the short term.
What do all developed nations have that emerging nations do not?
Transportation & business facilities for advanced production of manufactured goods
In many Latin American nations reliance on the production of a single cash crop has led to?
economic dependance on other nations
What do nations do with the extra products of over production?
they go up into space.
Modernization theory states that rich nations can aid the economic development of poor nations by?
providing financial assistance, technology transfer, and expertise. This is believed to help poor nations progress and catch up with wealthy nations through industrialization and modernization.
Does GDP accurately reflect the nations welfare?
The gross domestic product, GDP, does not accurately reflect the nations welfare. It does provide an indication of the nation's economy, but it is only one of the component's of the well-being of a country. The GDP does not take into account household production, excluded production, and negative production.
Are any other entities outside the OPEC nations involved in the production and sale of gasoline?
your but
What economic measurement does the U.S. government use to report the nations production output?
The "GDP".
Which resources of production is the only one that nations can significantly increase in short term?
Capital
