4. Choice land has 250 workers and produces only two goods, X and Y. Labor is-the only factor of production, but some workers are better suited to producing X than Y (andvice versa). The Table below shows the maximum levels of output of each good possible from various levels of labor input Number of Workers Producing X Annual Production of X Number of Workers Producing Ý Annual Production of Y 250 1300 50 20 200 1200 100 45 150 900 150 60 100 600 200 350 250 75 a) Draw the production possibilities boundary on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis. b) Ifthe economy is producing 40 units of X and 600 units of Y, what is the opportunity cost of producing an extra 100 units of Y. c) Ifthe economy is producing 40 units of X and 600 units of Y, wvhat is the opportunity cost of producing an extra 30 units of X.

4. Choice land has 250 workers and produces only two goods, X and Y. Labor is-the only factor of production, but some workers are better suited to producing X than Y (andvice versa). The Table below shows the maximum levels of output of each good possible from various levels of labor input Number of Workers Producing X Annual Production of X Number of Workers Producing Ý Annual Production of Y 250 1300 50 20 200 1200 100 45 150 900 150 60 100 600 200 350 250 75 a) Draw the production possibilities boundary on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis. b) Ifthe economy is producing 40 units of X and 600 units of Y, what is the opportunity cost of producing an extra 100 units of Y. c) Ifthe economy is producing 40 units of X and 600 units of Y, wvhat is the opportunity cost of producing an extra 30 units of X.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 2SCQ: Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that...

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