ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


Basic Economic Concepts Videos 7 videos

AP Microeconomics 1.2 Basic Economic Concepts
228 Views

AP Microeconomics 1.2 Basic Economic Concepts. On the production possibilities curve below, which of the following does point Z represent?

AP Microeconomics 1.3 Basic Economic Concepts
213 Views

AP Microeconomics 1.3 Basic Economic Concepts. Which of the following is not a factor of production for Google?

AP Microeconomics 1.6 Basic Economic Concepts
71 Views

AP Microeconomics 1.6 Basic Economic Concepts Review Drill. What does this point on the production possibilities curve represent?

See All

AP Microeconomics 1.6 Supply and Demand 38 Views


Share It!


Description:

AP Microeconomics 1.6 Supply and Demand. What will the production possibilities curve for this economy look like?

Language:
English Language

Transcript

00:00

Thank you We sneak and here's your shmoop du jour

00:05

Brought to you by quakers They're more than just a

00:07

bunch of people who sell oats They also do rice

00:10

cakes Assume quaker ville can produce either oats or cotton

00:15

And the opportunity cost of producing one unit of cotton

00:18

in terms of boats is constant for any level of

00:21

production What will the production possibilities curve for this economy

00:25

Look like all right potential answers right Both in your

00:28

boat Boat boat Well we're drawn grafts now underway to

00:31

think through this problem So get your crayons people We

00:34

start with this thing mr x and mr y and

00:38

this vertical line covers boats and this horizontal line covered

00:41

cotton need to figure out if the answer is a

00:44

curve shaped like this This this or well this So

00:50

if we think through the logic of any of these

00:52

curves the answer should come to us in well pretty

00:55

straightforward fashion A curve either up or down sideways or

00:58

backwards is going to give uneven distribution of resource is

01:02

think about an extreme curve like this if we reduce

01:05

cotton production just a tiny bid like from here to

01:09

here then glam o production volumes of road explode The

01:13

same happens with any of the other kurt Small moves

01:16

of resource is on one side of the equation Have

01:19

dramatic changes on production availability of the other constraint Good

01:24

but the problem kind of gives us the answer It

01:27

says the opportunity cost of oats is constant for any

01:31

level of production constant meaning that what should happen is

01:36

if we moved back a scotia this way reducing cotton

01:39

production As we move our dot thing in toward the

01:42

origin then the ability to produce more oats should increase

01:45

similarly or constantly Well small moves this way imply small

01:50

moves that way So the answer is b linear and 00:01:54.032 --> [endTime] that's How we roll our oats

Related Videos

AP Microeconomics 1.6 Basic Economic Concepts
71 Views

AP Microeconomics 1.6 Basic Economic Concepts Review Drill. What does this point on the production possibilities curve represent?

AP Microeconomics 1.12 Basic Economic Concepts
37 Views

AP Microeconomics 1.12 Basic Economic Concepts. What is an advantage of specialization and trade?

AP Microeconomics 1.8 Basic Economic Concepts
6 Views

AP Microeconomics 1.8 Basic Economic Concepts. What among the following may not be your opportunity cost?

AP Microeconomics 1.4 Basic Economic Concepts
15 Views

AP Microeconomics 1.4 Basic Economic Concepts. Which of the following is suggested by the slope of the production possibilities curve below?

ACT Science 1.1 Conflicting Viewpoint Passage
633 Views

ACT Science: Conflicting Viewpoint Passage Drill 1, Problem 1. What statement would both scientists agree upon?