Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Last part:(iii) The Minister of Finance in Nepal advices that in order to increase rice production and machinery, each sector requires USD 50 billion. Explain

Last part:(iii) The Minister of Finance in Nepal advices that in order to increase rice production and machinery, each sector requires USD 50 billion. Explain the impact of the budgetary allocation on the economy of Nepal using PPF.

image text in transcribed
1' l Ull IlUl In 2017, Nepal production of rice and machinery in 2017 was published by the Nepal Bureau of Statistics as indicated by the table below. Production in Nepal P Q R s T U v wx v 2 Rice (1000 tons) 0 10 26 37 45 50 55 59 66 77 80 Machinery (units) 90 89 85 80 75 70 65 60 50 30 0 Based on the table above, a production possibility frontier for Nepal can be plotted as below: Machinery 10 20 an 40 50 so 70 80 nice [mu tons 1 Use the Nepal production table and production possibility frontier to answer the following questions. (a) Name positions B, V and D. Explain the implications of each of the production positions (B, V, D) on Nepal's economy. (b) Supposing Nepal is operating at level T what is the opportunity cost of producing 10,000 more tons of rice? Also, suppose Nepal is operating at X what is the opportunity cost of producing 70 units of machinery? (c) Use the graph below to answer the questions that follow Machinery (UnitS) 80 Rice (000) (i) Suppose Nepal begins to manufacture fertilizers, explain the impact of the discovery of fertilizers to Nepal's economy using PPF. (ii) Supposing there is a discovery of steel in Nepal, explain the impact of steel to the economy of Nepal using a PPF. (iii) The W advices that in

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Economics Theory and Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

9th Edition

978-0132146654, 0132146657, 9780273754091, 978-0273754206

More Books

Students also viewed these Economics questions

Question

project

Answered: 1 week ago

Question

=+ d. What happens to Oceanias trade balance?

Answered: 1 week ago