Question

The table below shows the production possibilities schedule for an economy. Production Alternatives Capital Goods Consumers...

  1. The table below shows the production possibilities schedule for an economy.

Production Alternatives

Capital Goods

Consumers Good

A

0

1300

B

20

1200

C

45

900

D

60

600

E

70

350

F

75

0
  1. Putting capital goods on the horizontal axis and consumer goods on the vertical axis, graph the production possibilities curve for the economy.

Answer

  1. If the economy is producing at alternative B, what is the opportunity cost to it of producing at alternative C instead?

Answer:

  1. If the economy is producing at alternative C, what is the opportunity cost to it of producing at alternative D instead?

Answer:

  1. If the economy is producing 40 units of capital goods and 600 units of consumer goods, what is the opportunity cost of producing an extra 30 units of capital goods.

Answer:

  1. Which point, B or C, would lead to higher economic growth? Explain your answer.

Answer:

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A)

B) opportunity cost is value of next best alternative. So shifting resources from CONSUMERs goods to capital good ,and thus associated opportunity cost is Decrease in consumer good per capital good Increase.

Opportunity cost=300/25=12

C) opportunity cost=300/15=20

D)As economy can increase Production of capital to 60 without losing CONSUMERs goods by using full efficent use of resources.

So Increasing additional 10 unit of capital=250/10=25

E) If we compare b and C , C is associated with larger number of capital than B.

Future Economic growth depends on capital growth.and it is positively correlated with income.

So point B will give larger economic growth.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. The table below shows the production possibilities schedule for an economy. Production Alternatives Capital Goods...
1. The table below shows the production possibilities schedule for an economy. Production Alternatives Capital Goods Consumers Good A 0 1300 B 20 1200 C 45 900 D 60 600 E 70 350 F 75 0 a. Putting capital goods on the horizontal axis and consumer goods on the vertical axis, graph the production possibilities curve for the economy. Answer b. If the economy is producing at alternative B, what is the opportunity cost to it of producing at alternative...
Answer the question on the basis of the data given in the following production possibilities table....
Answer the question on the basis of the data given in the following production possibilities table. Production Possibilities (Alternatives) A B C D E F Capital Goods 5 4 3 2 1 0 Consumer Goods 0 5 9 12 14 15 Refer to the table. If the economy is producing at production alternative B, the opportunity cost of the 10th unit of consumer goods will be
Below is a production possibilities table for consumer goods (butter) and capital goods (guns). Production Possibilities...
Below is a production possibilities table for consumer goods (butter) and capital goods (guns). Production Possibilities Type of Production Production Alternative A Production Alternative B Production Alternative C Production Alternative D Production Alternative E Production Alternative F Production Alternative G Butter 0 1 2 3 4 5 6 Guns 14 13 11 9 7 4 0 Graph the data provided in the table using Excel. (Hints: Type your data into an Excel spreadsheet. With your mouse, highlight the data only....
Choiceland has 250 workers and produces only two​ goods, X and Y. Labour is the only...
Choiceland has 250 workers and produces only two​ goods, X and Y. Labour is the only factor of​ production, but some workers are better suited to producing X than Y​ (and vice​ versa). The table below shows the maximum levels of output of each good possible from various levels of labour input. Number of Workers Producing X Annual Production of X Number of Workers Producing Y Annual Production of Y 0 0 250 1300 50 20 200 1200 100 45...
Part 1 Below is a production possibilities table for consumer goods (butter) and capital goods (guns)....
Part 1 Below is a production possibilities table for consumer goods (butter) and capital goods (guns). Production Possibilities Type of Production Production Alternative A Production Alternative B Production Alternative C Production Alternative D Production Alternative E Production Alternative F Production Alternative G Butter 0 1 2 3 4 5 6 Guns 14 13 11 9 7 4 0 Graph the data provided in the table using Excel. (Hints: Type your data into an Excel spreadsheet. With your mouse, highlight the...
Production possibilites table Combination: A B C D E F Capital goods:5 4 3 2 1...
Production possibilites table Combination: A B C D E F Capital goods:5 4 3 2 1 0 Consumer goods:0 10 18 24 28 30 Construct a PP curve with capital goods on the horizontal axis on the graph below. (Pay attention to the shape of the curve.) Can this nation produce 14 units of capital goods? Explain. What is the opportunity cost of the first unit of capital goods? What is the opportunity cost of the fifth unit of capital...
production possibilities frontier will be linear instead of bowed out if A the opportunity cost of...
production possibilities frontier will be linear instead of bowed out if A the opportunity cost of producing more of either of the two goods is constant. B the opportunity cost of producing more of either of the two goods is zero. C the opportunity cost of producing either of the two goods always increases. D resources are employed efficiently.
a)Using a production possibilities schedule and assuming consumer goods and capital goods, explain how your positions...
a)Using a production possibilities schedule and assuming consumer goods and capital goods, explain how your positions on the curve can determine your location of the economic growth in the future. Use diagrams.
5.  Suppose the country of Bentleydom can produce the following efficient      combinations of consumer goods and capital...
5.  Suppose the country of Bentleydom can produce the following efficient      combinations of consumer goods and capital goods:                         Consumer Goods                    Capital Goods                                       0                                            60                                     10                                            55                                     20                                            45                                     30                                            30                                     40                                            0                                                                                  What is the opportunity cost of increasing the production of consumer goods from 10 to 20? What is the opportunity cost of increasing production of consumer goods from 30 to 40? Is the opportunity cost of producing consumer goods constant?  If not, describe what happens to the opportunity cost of consumer goods as we produce...
There is a production possibilities frontier that shows the combinations of goods x and y that...
There is a production possibilities frontier that shows the combinations of goods x and y that can be produced in the economy. the point where the ppf touches the good x-axis is at 40 units of good x and the point where the ppf touches the good y-axis is at 60 units As a result of an increase in resources that can be used for the production of both goods, the ppf: a. shifts leftward, in the point at which...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT