Answered step by step
Verified Expert Solution
Question
1 Approved Answer
02. Table below shows a series of points that define an economy's Production Possibility Frontier for goods Y and X. X 1000 900 800 700
02. Table below shows a series of points that define an economy's Production Possibility Frontier for goods Y and X. X 1000 900 800 700 600 500 400 30 300 200 100 Y 0 1600 2500 3300 4000 4600 5100 5500 5750 5900 6000 0 i. Plot these pairs of points to a scale. (02 marks) ii. Given the shape of this PPF, is the economy made up of individuals who are similar or different in their production capabilities? (02 marks) ( iii. What is the opportunity cost of producing 100 more Y at the combination (X = 5500, Y = 300). (03 marks) iv. Suppose a technological change which enable the economy to produce 20 percent more X at output level of good Y. Plot new PPF in the same graph. (04 marks) v. Use the PPF derived to determine whether the following combinations are attainable X = 3000, Y = 720; X = 4800, Y = 480 (04 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started