That is homework 1 of macroeconomic

E coursehero.com 1. Use the following data to answer the following questions. 3 Table shows the production possibilities for the country XYZ: Food Sunscreen (Kjlograms per month) (litres per month) 0 50 100 45 200 35 ' 300 20 7 V 400 70 7 7 (i) Draw a Production Possibility Frontier (PPF). (ii) How does the PPF illustrate scarcity? (iii)I-low does the PPF illustrate production efciency? (iv) How does the PPF show that every choice involves a tradeot't'? (v) How does the PPF illustrate opportunity cost? 2. Answer the following questions. 2 (i) How do you dene the term scarcity of resources? Give two examples of scarce resources in your daily life. Explain why they are scarce. (ii) Dismiss the three fundamental problems (what, how and for whom) of economics. hllpsjfwwwjaursdaemxmn/lcll MTMJWHummkoNE-MACROJ Principles of Macroeconomics Okanagan College Homework ONE 3. The following table sets out the demand and supply schedules for roses on a normal weekend. 5 Price Quantity demanded Quantity supplied (dollar per rose) (per week) (per week) 6.00 15 5 7.00 12 7 8.00 9 9 9.00 6 l l 10.00 3 l3 (i) Draw the demand curve and supply curve of rose market in a diagram. (ii) What is the equilibrium market price and quantity traded? Explain the equilibrium process. (iii) Rose sellers know that Valentine Day is next week, so they withhold supply of 5 roses at each price in this week. What is the equilibrium price and quantity traded in this week? Explain with the help of diagram. (iv) 0n Valentine Day, demand increases by 10 roses at each price and supply increases by 5 roses (those withhold last week) at each price. What is the equilibrium price and quantity traded in this week? Explain with the help of diagram