Using the following combinations as Production Possibilities data for consumer goods and capital goods, answer the following questions: 1a. A E Consumer Goods 25 50 75 100 Capital Goods 100 90 75 45 b. In the space below, graph the above production possibilities schedule (label everything):
Using the following combinations as Production Possibilities data for consumer goods and capital goods, answer the following questions: 1a. A E Consumer Goods 25 50 75 100 Capital Goods 100 90 75 45 b. In the space below, graph the above production possibilities schedule (label everything):
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 6SQP
Related questions
Question
Can you help with e and f?
Transcribed Image Text:1f. If the economy is currently producing at point B, the opportunity
cost of consumer goods is
O 25 consumer goods
O 15 capital goods
O 15 consumer goods
O 25 capital goods
le. The opportunity cost of shifting production from point E to point D
O 25 consumer goods
25 capital goods
O 45 consumer goods
O 45 capital goods
PS Express
Transcribed Image Text:Using the following combinations as Production Possibilities data for consumer goods and capital goods, answer the
following questions:
1a.
A
E
Consumer Goods
25
50
75
100
Capital Goods
100
90
75
45
b.
In the space below, graph the above production possibilities schedule (label everything):
С.
What is the opportunity cost from point D to point C? Show formulas, calculations, answers, and brief analytical
statement.
d.
What is the opportunity cost of two goods from point A to point B? Show formulas, calculations, answers, and brief
analytical statement.
If our economy desires to shift from point E to point D, what is the opportunity cost?
answers, and brief analytical statement.
e.
Show formulas, calculations,
f.
If the economy is currently producing at point B, what is the opportunity cost of consumer goods? Show formulas,
calculations, answers, and brief analytical statement.
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