15 - According to the graph, for this economy, an increase in the quantity of capital goods produced without a corresponding decrease in the quantity of consumer goods produced Quantity of capital goods PPF B Quantity of consumer goods a) is represented by a movement from point E to point B. b) O cannot happen because there is always an opportunity cost. c) is represented by a movement from point E to point A. d) is only possible with an increase in resources or technology. e) O is represented by a movement from point C to point B.

15 - According to the graph, for this economy, an increase in the quantity of capital goods produced without a corresponding decrease in the quantity of consumer goods produced Quantity of capital goods PPF B Quantity of consumer goods a) is represented by a movement from point E to point B. b) O cannot happen because there is always an opportunity cost. c) is represented by a movement from point E to point A. d) is only possible with an increase in resources or technology. e) O is represented by a movement from point C to point B.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow. Capital goods Consumer goods Figure 2.1 Refer to Figure 2.1. If Macroland's economy is at Point A, it could produce more consumer goods O only by sacrificing some capital goods. O without sacrificing any capital goods. O only with additional resources. O only with technological improvements.
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Suppose the economy initially produces 15,000 gallons of drinking water and 450,000 tons of steel, which is represented by point A. The opportunity cost of producing an additional 5,000 gallons of drinking water (that is, moving production to point B) is (72,000, 135,000, 90,000, 54,000, 108,000) tons of steelSuppose, instead, that the economy currently produces 378,000 tons of steel and 20,000 gallons of drinking water, which is represented by point B. Now the opportunity cost of producing an additional 5,000 gallons of drinking water (that is, moving to point C) is (72,000, 135,000, 90,000, 54,000, 108,000) ons of steel.Comparing your answers in the two previous paragraphs, you can see that the opportunity cost of 5,000 additional gallons of drinking water at point B is (Less, Equal, Or Greater Than) the opportunity cost of 5,000 additional gallons of drinking water at point A. This reflects the (Notion that Countries can gain from trade, Law of Increasing Opportunity Costs, Fact…
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