Question
Identify any 5 factors that will shift a supply curve to the right. Explain each factor. Below is the production possibility schedule for an economy.
Identify any 5 factors that will shift a supply curve to the right. Explain each factor.
Below is the production possibility schedule for an economy.
Max. Annual output options
Quantity of potatoes (pounds)
Quantity of fish (pounds)
A
1000
0
B
800
300
C
600
500
D
400
600
E
200
650
F
0
675
- Is it possible to produce 500 lbs fish and 800 lbs potatoes? Why or why not? Explain.
- What is the opportunity cost of increasing the annual output of potatoes from 600 to 800 lbs?
- What is the opportunity cost of increasing the annual output of potatoes from 200 to 400 lbs?
- Suppose the economy is producing 800 lbs of potatoes & 300 lbs of fish. What is the opportunity cost of producing 350 lbs of more fish?
- Is the combination 600 lbs potatoes & 400 lbs fish efficient? Why or why not?
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
9th Edition
978-0132146654, 0132146657, 9780273754091, 978-0273754206
