A nation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms: Yards of Carpets Carpet Looms (Millions) (Thousands) 0 50 10 40 22 28 34 19 46 8 60 0 These figures assume that a certain number of previously produced looms are available in the current period for producing carpet. Using data in the table, graph the ppf (with carpet on the vertical axis) What happens to the opportunity cost of carpets measured in number of looms—as carpet production increases from 0 to 10 Million yards, from 10 to 22 Million yards, from 20 to 30 Million yards, and so on? If this country chooses to produce both carpets and looms, what will happen to the ppf over time? Why?
A nation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms: Yards of Carpets Carpet Looms (Millions) (Thousands) 0 50 10 40 22 28 34 19 46 8 60 0 These figures assume that a certain number of previously produced looms are available in the current period for producing carpet. Using data in the table, graph the ppf (with carpet on the vertical axis) What happens to the opportunity cost of carpets measured in number of looms—as carpet production increases from 0 to 10 Million yards, from 10 to 22 Million yards, from 20 to 30 Million yards, and so on? If this country chooses to produce both carpets and looms, what will happen to the ppf over time? Why?
Chapter2: Economic Tools And Economic Systems
Section: Chapter Questions
Problem 3.5P
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- A nation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms:
Yards of Carpets Carpet Looms
(Millions) (Thousands)
0 50
10 40
22 28
34 19
46 8
60 0
These figures assume that a certain number of previously produced looms are available in the current period for producing carpet.
- Using data in the table, graph the
ppf (with carpet on the vertical axis) - What happens to the
opportunity cost of carpets measured in number of looms—as carpet production increases from 0 to 10 Million yards, from 10 to 22 Million yards, from 20 to 30 Million yards, and so on? - If this country chooses to produce both carpets and looms, what will happen to the ppf over time? Why?
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