1. Below is the production possibilities table for consumer goods (washing machine) and capital goods (tractor): Type of Production Production Possibilities A B C D E Washing Machine 0 4 8 12 16 Tractor 60 54 42 24 0 a) Show these data graphically. b) If the economy is at point B, what is the cost of one more washing machine? What is the cost of one more tractor? c)Explain how the production possibilities frontier reflects the law of increasing opportunity costs.
1. Below is the production possibilities table for consumer goods (washing machine) and capital goods (tractor): Type of Production Production Possibilities A B C D E Washing Machine 0 4 8 12 16 Tractor 60 54 42 24 0 a) Show these data graphically. b) If the economy is at point B, what is the cost of one more washing machine? What is the cost of one more tractor? c)Explain how the production possibilities frontier reflects the law of increasing opportunity costs.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
1. Below is the production possibilities table for consumer goods (washing machine) and capital goods (tractor):
|
Type of Production |
Production Possibilities |
||||
|
A |
B |
C |
D |
E |
|
|
Washing Machine |
0 |
4 |
8 |
12 |
16 |
|
Tractor |
60 |
54 |
42 |
24 |
0 |
a) Show these data graphically.
b) If the economy is at point B, what is the cost of one more washing machine? What is the cost of one more tractor?
c)Explain how the
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