1. An economy is confined by a labor-force of 50 workers and produce both Cars and Lumber. It takes 5 workers to produce
Posted: Wed Apr 27, 2022 1:09 pm
1. An economy is confined by a labor-force of 50 workers
and produce both Cars and Lumber. It takes 5 workers to produce 1
car and 2 workers to produce 5 unit of lumber.
a) What is the maximum quantity of cars and lumber that can
be produced in the economy?
b) Construct the production possibility schedule
c) Graphically represent the countries productive
capabilities.
2. The table below represents Country X productive
potential:
Carrots
Fish
4
10
12
20
16
30
20
40
24
50
28
60
32
70
a) Graphically represent Country X PPC
b) Label points that are Efficient, inefficient,
Unattainable.
c) Calculate the opportunity cost ratio of the country.
d) Show what happens if a storm were to negatively impact
the country’s productivity by 50%.
e) State one reason that may cause the productive
capability of fish to pivot outwards.
and produce both Cars and Lumber. It takes 5 workers to produce 1
car and 2 workers to produce 5 unit of lumber.
a) What is the maximum quantity of cars and lumber that can
be produced in the economy?
b) Construct the production possibility schedule
c) Graphically represent the countries productive
capabilities.
2. The table below represents Country X productive
potential:
Carrots
Fish
4
10
12
20
16
30
20
40
24
50
28
60
32
70
a) Graphically represent Country X PPC
b) Label points that are Efficient, inefficient,
Unattainable.
c) Calculate the opportunity cost ratio of the country.
d) Show what happens if a storm were to negatively impact
the country’s productivity by 50%.
e) State one reason that may cause the productive
capability of fish to pivot outwards.