Question Solved1 Answer Imagine a society that produces military goods and consumer goods, which we’ll call “guns” and “butter.” Draw a production possibilities frontier for guns and butter. Using the concept of opportunity cost, explain why it most likely has a bowed-out shape. Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient.Imagine that the society has two political parties, called the Hawks (who want a strong military) and the Doves (who want A smaller military). Show a point on your production possibilities frontier that the Hawks might choose and a point the Doves might choose. Imagine that an aggressive neighboring country reduces the size of its military. As a result, both the Hawks and the Doves reduce their desired production of guns by the same amount. Which party would get the bigger “peace dividend,” measured by the increase in butter production? Explain.
Imagine a society that produces military goods and consumer goods, which we’ll call “guns” and “butter.”
- Draw a production possibilities frontier for guns and butter. Using the concept of opportunity cost, explain why it most likely has a bowed-out shape.
- Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient.
- Imagine that the society has two political parties, called the Hawks (who want a strong military) and the Doves (who want A smaller military). Show a point on your production possibilities frontier that the Hawks might choose and a point the Doves might choose.
- Imagine that an aggressive neighboring country reduces the size of its military. As a result, both the Hawks and the Doves reduce their desired production of guns by the same amount. Which party would get the bigger “peace dividend,” measured by the increase in butter production? Explain.
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Step 1Since you have asked multiple sub-parts, first three sub-parts would be answered. If you want the answer of the other sub-parts also, please post them separately.Production possibilities curve is the graphical representation of the production possibilities in a region. It is concave shaped negatively sloped curve which shows the output combinations of two or more goods that the government in a region can choose to produce. This curve tells the allocation of available resources among the production alternatives. Part 1 The production possibilities curve is as follows:Quantityof gunsproducedQuantity of butter producedThe curve is bowed outwards because of the falling marginal rate of transformation. The economy can either use resources to produce guns or butter. It can operate at a level at which it produces some amount of guns and some amount of butter. It is because t ... See the full answer