Page 1 of 1
3. A) Suppose our country only produces two types of goods, Beer and Pizza. Some of our resources - our people are bette
Posted: Fri Jul 01, 2022 7:56 am
by answerhappygod
- 3 A Suppose Our Country Only Produces Two Types Of Goods Beer And Pizza Some Of Our Resources Our People Are Bette 1 (271.52 KiB) Viewed 24 times
3. A) Suppose our country only produces two types of goods, Beer and Pizza. Some of our resources - our people are better at making beer and are pretty slow when asked to cook pizza, though they can do it if given enough time. Others are superior at cooking pizza, but really struggle when it comes to making beer. Still others are ok at each task, but not as good as the specialists. If everyone makes beer, we can produce 10,000 cases of beer. If everyone cooks pizza, we get 5,000 pizzas. Show the initial PPF. (Hint: Look ahead to part B before you draw this graph) B) Now, suppose the population grows by 50%. Assume the new people have a similar mix of skills as the existing population. Show on the same PPF above the change and the new situation What is the maximum amount of beer the country can produce? What is the maximum amount of pizza they can make?