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@assignment 6-PPF

This document contains a table showing the production possibilities of two goods, cloth and wheat, for an economy. It asks the student to: 1) Graph the production possibilities frontier using the data. 2) Explain why point D is efficient while point H is not. 3) Indicate an unattainable production point and explain what must happen to achieve it. 4) Calculate the opportunity cost of increasing production of cloth or wheat between several point pairs.

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Abhishek
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47 views1 page

@assignment 6-PPF

This document contains a table showing the production possibilities of two goods, cloth and wheat, for an economy. It asks the student to: 1) Graph the production possibilities frontier using the data. 2) Explain why point D is efficient while point H is not. 3) Indicate an unattainable production point and explain what must happen to achieve it. 4) Calculate the opportunity cost of increasing production of cloth or wheat between several point pairs.

Uploaded by

Abhishek
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© © All Rights Reserved
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Download as DOC, PDF, TXT or read online on Scribd
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Download as doc, pdf, or txt
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Name ___________________________________

1. The following data give the production possibilities of an economy that produces two types of
goods, cloth (horizontal axis) and wheat (vertical axis).
Production
Cloth Wheat
Possibilities
A 0 105
B 10 100
C 20 90
D 30 75
E 40 55
F 50 30
G 60 0
a. Graph the production possibilities frontier.

b. Explain why Point D is efficient while Point H is not.

c. Indicate by drawing an 'X' where production is unattainable. To achieve this currently


unattainable production combination, what must happen (two possible answers)?

d. Calculate the per-unit opportunity cost of an increase in the production of cloth, or the
production of wheat, in each of the following cases.
From Point A to Point B?

From Point F to Point E?

From Point C to Point D?

PART 2 PA

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