Use production possibilities frontier to Show wt happens if engineers make a car engine wid almost no emssions

Question

Use a production possibilities frontier to illustrate society’s trade off between a clean environment and high incomes. What do you suppose determines the shape and location of the frontier? Show what happens if engineers develop a car engine with almost no emissions.

Answer 1

Production possibilities frontiers are typically illustrations showing the opportunity cost tradeoffs of producing various quantities of any two products (such as bread and cars). This is what I am familiar with. In your case, "high incomes" and "clean environment" are not two products in the traditional sense, so please consider my answer an opinion only.

If we broadly consider high incomes and clean environment to be two products (which the question seems to imply), we can assume that each "product" requires resources and technology to make. The PPF then represents the maximum amount of one product for any given amount of the other product, given a certain resource and technology level in the economy.

So what would determine the location of the curve? If resources increase or technology/efficiency improves, the curve moves outward. If the opposite happens, the curve moves inward.

What about the shape of the curve? First, let's assume that the quantity of these two "products" (as two traditional products would) behave inversely. Meaning if you want spend more resources toward producing higher incomes, you have to sacrifice some degree of a clean environment, and vice versa. This type of situation could occur if 1) environmentally dirty energy resources such as coal and gasoline are cheap 2) if consumers are not very environmentally conscious 3) if there are sparse env. regulations. In this case, the curve likely would be concave facing the origin. (However, if "one unit" of a clean environment and "one unit" of high income happen to require the same amount of resources, the curve would actually be a linear, downward sloping line. But that scenario is very unlikely.)

BUT, a BIG problem I personally have with the above assumption is that in the real world, i.e. what you see happening now in the economy, high incomes and clean environment are not inversely related. In fact, they are increasingly directly related. Due to the rising price of oil, more stringent gov't pollution regulations both domestically and abroad, and consumers becoming more environmentally conscious, many companies actually HAVE to invest in alternative energy energy solutions if they want to stay competitive and profitable. So in this direct relationship, the PPF would not be a valid or useful tool.

As for what happens when engineers develop a zero emission car, you will have to decide for yourself what relationship (whether inverse or direct) you believe exists between a clean env. and high incomes, and base your answer around that. Good luck!

Answer 2

truly particular and no. many human beings have self assurance the MPG decal on the window is genuine. this could and could no longer be. as quickly as we force on a flat street with the wind to our backs we can get greater powerful mileage than going up hill into the wind. motor vehicle manufactures probably use a attempt music to get the window decal MPG and that they conceal themselves by skill of asserting we could or won't get this MPG in accordance to our utilising situations. Now, returned to the Datsun. With further and further emphasis being from the EPA vehicles are having greater little whirly gigs to furnish greater powerful emissions, the is on the cost of mileage. I bear in mind a pal of mine, his dad had a variety of Honda Civic 1980's vehicles that acknowledged like a Matchbox motor vehicle. It have been given great gasoline economic device, yet, it grow to be extraordinarily uncomplicated. I merely experience we've 2 important subject concerns with vehicles, MPG and Emissions, and we lose to one to earnings for the different. utilising conduct effect mileage a lot too and the section. As I mentioned in the past. So, in case you lived in a flat section with the Datsun and now stay in a Hill section this could additionally impression mileage. yet, this my opinion and there are others.