Economics

How does increasing or decreasing the quantity of capital goods produced this period affect next period's production possibilities curve and why?

The only thing I can think of is that if more products are produced this period, less can be produced next period because their are less resources used and if less goods are produced this period, more can be produced next period because less resources have been used. So, if more goods are produced the production possibilities curve moves to the left anf if less goods are produced the curve moves to the right. I do not know why though...

Is this right? I am slightly confused with this whole concept...PLEASE HELP!

  1. 👍
  2. 👎
  3. 👁
  1. Hummmm. In a world of fixed, non-renewable (natural) resources, I would agree with your answer. However, I think you may have over-analyzed this problem/question. Further, your original question asked about capital goods.

    In general, one makes capital goods today so that one can be more productive tomorrow. Increasing the quantity of capital goods should shift the PPF outward.

    (Consider an example of a primative hunting society. With its current capital stock of spears only, the tribe can kill 100 deers per year. However, instead of hunting, some tribe members work on creating bows and arrows (creation of capital goods). How many deer can the tribe expect in the following period with bows and arrows?

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. educational technology

    Which of the following sentences best describes the Progressive Era? (1 point) It was a period in which many social reforms occurred. It was a period of unchecked abuses by big business. It was a period of civil war and the end of

  2. art

    1. during which time period were artists keenly interested in using the golden ratio in their paintings a.Baroque period b.oriental period c.futuristic period d.renaissance period 2. what is the best definition for the term visual

  3. AP Chem

    Which of the following conditions would most likely affect the rate of a chemical reaction? A. Increasing the number of reaction steps B. Decreasing the size of the reaction vessel C. Increasing the concentration of reactants D.

  4. Calculus

    Given f'(x)=(2-x)(6-x), determine the intervals on which f(x) is increasing or decreasing Options: 1) Decreasing (-∞,2); increasing on (6,∞) 2) Decreasing (2,6); increasing on (-∞,2)U(6,∞) 3) Decreasing (-∞,2)U(6,∞);

  1. Trig

    Evaluate the trigonometric function using its period as an aid. cos 5pi how would i go about finding the period and what is a period?

  2. Finance

    For each of the following situations, indicate whether FIFO, LIFO, or weighted average applies. a. In a period of rising prices, net income would be highest. b. In a period of rising prices, cost of goods sold would be highest. c.

  3. psychology

    The longest period of time during prenatal development is the -Period of the fetus - Third Trimester - Period of the embryo - Germinal Stage - Period of the zygote I believe the answer is period of the fetus.

  4. Math

    A pendulum of Length L cm has time period T seconds. T is directly proportional to the square root of L. The length of the pendulum is increased by 40%. What is the percentage increase in the time period? ???????? Multiplier for

  1. calculus

    Consider the exponential function . Which of the following best describes the the graph of g? a. Concave up and increasing b. Concave up and decreasing c. Concave down and increasing d. Concave down and decreasing The rules are

  2. Chemistry

    Name and give the symbol for each of the following: a)the element in period 3 group 2 = Magnesium = Mg b)the halogen in period 4 = Bromine = Br c)the element in period 6 and group 11 = Gold = Au d)the akali metal in period 2 =

  3. Algebra

    A survey was taken of students in math classes to find out how many hours per day students spend on social media. The survey results for the first-, second-, and third-period classes are as follows: First period: 2, 4, 3, 1, 0, 2,

  4. World History

    What was the First Industrial Revolution? A) the period of new technology that shifted the focus from industry to the spread of information B) the period when modern science emerged and transformed views on society, politics, and

You can view more similar questions or ask a new question.