Thank You Very Much.
Please, The following TWO Questions to be answered Accordingly and specifically with diagrams, drawings and curves and illustration and essay explanations.
1. IMAGINE that a country can produce just two things : Goods and Services. ASSUME that over a given time period it could produce any of the following combinations:
Units of GOODS 0 10 20 30 40 50 60 70 80 90 100
Units of Services 80 79 77 74 70 65 58 48 35 19 0
(a) Draw the country’s Production Possibility Curve.
(b) Assuming that the country is currently producing 40 units of Goods and 70 units of Services, WHAT is the opportunity cost of producing another 10 Units of Goods ?
(c) EXPLAIN How the figures illustrate the Principle of Increasing Opportunity Cost.
(d) Now, Assume that Technical progress leads to a 10 percent increase in the output of GOODS for any given amount of resources.
DRAW The New Production Possibility Curve.
HOW has the opportunity cost of Producing extra units of SERVICES Altered ?
DRAW On Separate DEMAND and SUPPLY Diagrams for BREAD, SKETCH The effects of the following :
(a) A RISE in the Price of Wheat
(b) A RISE in the Price of Butter and Margarine;
(c) A RISE in the Price of Rice, Pasta and Potatoes
IN EACH OF THE Above Cases in Question 2 , PLEASE STATE Clearly and detailedly Your ASSUMPTIONS.
—-Thank you very much for your time and efforts. I am grateful to you.
Harvard Stlye Referencing and The Australia Guide to Legal Citation and Turnitin is to be followed and used.
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