Maximum poSSible bination öf food and clothing that can be produced in a given period of time is given in the table below. Units of food Units of clothing (millions) (millions) 8.0 0.0 7.0 2.2 6.0 4.0 5.0 5.0 4.0 5.6 3.0 6.0 2.0 6.4 1.0 6.7 0.0 7.0 1. Draw a Production Possibility Frontier (PPF) for this economy. (Hint: have food measured on the horizontal axis and clothes on the vertical axis.) 2. What is the opportunity cost of moving from producing 4 million units of food to 6 million units of food? Give your answer in terms of 1 unit of food. - 3. Give examples of factors that may shift the PPF to the right? 4. Show by graph how will the PPF shift if there is a technical change only in food.

Maximum poSSible bination öf food and clothing that can be produced in a given period of time is given in the table below. Units of food Units of clothing (millions) (millions) 8.0 0.0 7.0 2.2 6.0 4.0 5.0 5.0 4.0 5.6 3.0 6.0 2.0 6.4 1.0 6.7 0.0 7.0 1. Draw a Production Possibility Frontier (PPF) for this economy. (Hint: have food measured on the horizontal axis and clothes on the vertical axis.) 2. What is the opportunity cost of moving from producing 4 million units of food to 6 million units of food? Give your answer in terms of 1 unit of food. - 3. Give examples of factors that may shift the PPF to the right? 4. Show by graph how will the PPF shift if there is a technical change only in food.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 9SQP

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