various intermediate quantities, Microeconomics

Assignment Help:
An economy can produce a maximum of either 28 million tons of wheat or 7,000 automobiles,
or various intermediate quantities, as depicted in the table below:

Wheat (millions of tons)
A28 ,B 7,C25,D 22,E 18,F 13,G 7,H 0
Automobiles (thousands of units)
A0,B1,C 2,D 3,E 4,F 5,G 6,H 7
a. Plot the data from the table on a graph, with wheat on the vertical axis and
automobiles on the horizontal axis.
b. Can this economy simultaneously produce 3,000 automobiles and 15 million tons of
wheat? Explain. Where would this point lie relative to the PPF?
c. Can this economy simultaneously produce 2,000 automobiles and 27 million tons of
wheat? Explain. Where would this point lie relative to the PPF?
d. Add a new row to the table listing the opportunity cost of producing the 1st through
the 7th automobiles. In what units is this opportunity cost measured?
e. What is the relationship between the opportunity costs you just calculated and the
slopes of the PPF graph?
f. Now consider if instead the economy decided to produce additional units of wheat and
fewer automobiles. In particular, consider if the economy moved from D to C. What is
the relationship between the opportunity cost of this move and the slope of the graph
connecting points C and D?
g. Can you explain why the opportunity cost of moving from point C to D is not the same
as the opportunity cost of moving from B to C? In particular, why is the opportunity
cost of moving from C to D higher than the opportunity cost of moving from B to C?
h. An alternative shape used to draw PPFs is simply a straight line. What underlying
assumption is reflected in a straightline PPF?

Related Discussions:- various intermediate quantities

Graphing, I can''t figure out how to graph the aggregate consumption functi...

I can''t figure out how to graph the aggregate consumption function and the aggregate saving function

Supply and demand, 1. State of the art machines at the advanced Yamaha musi...

1. State of the art machines at the advanced Yamaha musical instrument plant tune the exact sound of high caliber musical instruments (vs a certain touch, and perhaps a degree of v

Mediterranean regional project (mrp) technique, Mediterranean Regional Proj...

Mediterranean Regional Project (MRP) Technique This technique had been initially employed by the OECD (Organisation of Economic Cooperation and Development, Europe) to prepare

Define contribution pensions, Q. Define Contribution Pensions? Defined ...

Q. Define Contribution Pensions? Defined Contribution Pensions: A pension plan which makes no specified promise about level of pension paid out after retirement. In its place,

Aggregate demand for wheat, Aggregate Demand For Wheat The demand for U...

Aggregate Demand For Wheat The demand for U.S. wheat is comprised of domestic demand and export demand. The domestic demand for wheat can be given by the equation: -QDD =

MONOPSONY, ADVANTAGES AND DIS ADVANTAGES OF MONOPSONY

ADVANTAGES AND DIS ADVANTAGES OF MONOPSONY

Explain why both the pes and ped tend to be inelastic, Explain why both the...

Explain why both the PES and PED tend to be inelastic in the short run for primary goods. PED deals with (primarily) the ability and propensity of consumers to switch to other

Impact of economic reforms on labour, Impact of Economic Reforms on Labour:...

Impact of Economic Reforms on Labour: It would be of interest to study the industrial relations scenario in the pre-reform and post-reform period. Data provided in table 8.4 r

Market intervention by government, Market intervention by government Gover...

Market intervention by government Government intervenes in various degrees in different countries. Free economy is almost non-existent in the modem world. In real world, the form,

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd