Money Meney Goods and senices Faetor Ovantity of coconuts Households Markets for goods and services Factor markets 20 15 Goods and 10 ervices Factors 人 30 40 Ouantity of Esh 10 20 50 Money Firma Meney Reference: Ref 2-22 Figure: Production Possibilities and Circular-Flow Diagram (Figure: Production Possibilities and Circular-Flow Diagram) Use Figure: Production Possibilities and Circular-Flow Diagram. Assume the two figures represent the same economy. Suppose that in the circular-flow diagram there is a significant increase in the amount of human capital flowing to both coconut producers and fish producers. If all other variables remain unchanged, then the àdjustment in this economy would be BEST represented in the production possibilities figure by a movement from point A toward:

Money Meney Goods and senices Faetor Ovantity of coconuts Households Markets for goods and services Factor markets 20 15 Goods and 10 ervices Factors 人 30 40 Ouantity of Esh 10 20 50 Money Firma Meney Reference: Ref 2-22 Figure: Production Possibilities and Circular-Flow Diagram (Figure: Production Possibilities and Circular-Flow Diagram) Use Figure: Production Possibilities and Circular-Flow Diagram. Assume the two figures represent the same economy. Suppose that in the circular-flow diagram there is a significant increase in the amount of human capital flowing to both coconut producers and fish producers. If all other variables remain unchanged, then the àdjustment in this economy would be BEST represented in the production possibilities figure by a movement from point A toward:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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