7 pages Assignment Example | Topics and Well Written Essays - 750 words

7 pages - Assignment ExampleIf quite a little buy a sens of drinks or many tickets are sold, the players salary increases. If there are only a few people who buy the tickets or the drinks, the players salary decreases.Q.1.When there is underutilization, a country uses fewer resources than those that it can use. The payoff possibilities term is that line on the production possibilities graph which indicates the maximum possible output.Q. 2. The Product Possibilities Curve abbreviated as PPC shows the optimum production take aim hat economies can attain. For example, if a person compare the main level of production for an providence, with the actual curve, it is possible to determine the economys efficiency.Q. 3. Opportunity cost is demonstrated when fashioning a comparison between data on different points on the production possibilities frontier. When the production of an factor goes up, the curve on the PPC shows the production curve decreasing.Q. 4. If there is a decrease it does not mean that the production possibilities for farms output have decreased. If the decrease in farms was higher than the production possibility consequently the farm output would increase and vice versa.Q. 6. Certain events such as natural disasters for example, floods and hurricanes are potential to move the PPC down and to the left because there would be a reduction of productivity in the economy since most businesses in operation.Q. 6. Repairing a leaking roof and paying the night security guard are mulish costs because the payment does not change despite the events surrounding the expenses. Cotton, food and electricity at the lallygag are variable because they always change.Q. 3. Regulations affect the output decisions of producers because it may make it too expensive or cheaper. For example, companies will not continue to supply if the regulations support the expensive