Suppose the United States can produce two goods, cloth and tea. Suppose there was a technological breakthrough in making cloth O
NLY. Would the PPF curve shift inward or outward in this case and can we indirectly allocate resources from cloth to tea production along the new PPF curve? Explain. Please draw and the label the initial PPF curve PPF 1 and then please draw the new PPF curve PPF 2. Please draw an arrow to indicate the shift in the PPF curves. Also, put tea on the y-axis and cloth on the x-axis.
PPF will rotate rightward by technological breakthrough in making cloth only
Explanation:
PPF is the graphical representation of two goods, that an economy can produce with given resources & technology.
If there is a technological breakthrough in only one good (cloth here) in economy (US here). The new PPF shift outward (rightwards or upwards) only on the axis representing that particular good (on x or y axis respectively). As cloth is on x axis, the PPF will rotate rightward by technological breakthrough in making cloth only.
Yes, on new rightward rotated PPF also, cloth & tea can be traded off, but at an altered slope & marginal opportunity cost (sacrifise ratio).
Self-selection begin with self-introspection in order to find out what we truly desire from our career and the skill sets that we have from our personalities, knowledge and experience.
After that, we pinpoint this data with the type of job that exist in the market and the criteria that is expected by the employers. Doing self selection before picking a job would increase the rate of job satisfaction.
Sdjusting entries are simply referred to as the journal entries that are made when the accounting period ends such that there is allocation of the income and the expenditure incurred by the economic agent to the period in which the income and the expenditure occurred.
In this case, the adjusting journal entry passed by the accountant will be to debit the wages account by $1500 and then credit the wages payable account by $1500.
A verbal contract comes into existence when there is a proposal and the person who receives the offer accepts the conditions. When the offeror and the offeree comes into a verbal agreement (terms and conditions) the speaking acceptance becomes the contract into reality.
