Reference no: EM13833835
Production Possibilities Curve (PPC)
Suppose that the country of Wonderia divides all the goods produced by it's economy into two types: capital goods and consumption goods. Use the data in the table to completely lable Wonderia's Production Possibilities Curve (PPC) and answer the subsequent questions. Label all your answers, choices, work, etc. with A, B, C, .....and etc.
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Farlandia's Production Choices
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Choices
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Quantity of Capital Goods
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Quantity of Consumption Goods
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A
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400
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0
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B
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300
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100
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C
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200
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200
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D
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100
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300
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E
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0
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400
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Answer the following questions and submit a typed hard copy of your written answers to the instructor in the class.
a. Which choice(s) represent efficiency in production? Explain why. Show your answer to with lable(s) (chosing from A, B. C, F G, 0, etc.), then wirte a brief sentence explaining why.)
b. Which choice(s) represent inefficiency in production? Explain Why. Show your answer with lable(s) (chosing from A, B, C, F, G, 0, etc.), then wirte a brief sentence explaining why.)
c. Which choice(s) are unattainable? Explain Why. Show your answer with lable(s) (chosing A, B, C F, a 0, etc.). then wirte a brief sentence
explaining why.)
d. What is Wonderia's opportunity cost of going from point C to point D? Show your answer with a number (use the table above), then wirte a brief sentence explaining why.)
e. When or how could Wonderia move to point G. Write a brief sentence.
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