The data in the table below are for the small country of Xanadu. Assume that the economy is originally producing combination C. A B C D E F Capital Goods 0 5 7 9 10 11 Capital Goods 2 0 7 9.8 12.6 14 15.4 Consumer Goods 75 60 45 30 15 0 a. A technological change occurs that enables Xanadu to produce 40% more units of capital goods. Complete the row Capital Goods 2, in the table above, given this technological change. Enter your responses, both above and below, rounded to 1 decimal place. b. Assuming the economy wants to continue with the same quantity of consumer goods, it can have 2.8 more capital goods as a result of the technological improvement. c. Assuming the economy wants to continue with the same quantity of capital goods, it can have 15 more consumer goods as a result of the technological improvement. d. Before the technological change, the opportunity cost of the first 60 consumer goods was capital goods . e. After the technological change, the opportunity cost of the first 60 consumer goods is
The data in the table below are for the small country of Xanadu. Assume that the economy is originally producing combination C. A B C D E F Capital Goods 0 5 7 9 10 11 Capital Goods 2 0 7 9.8 12.6 14 15.4 Consumer Goods 75 60 45 30 15 0 a. A technological change occurs that enables Xanadu to produce 40% more units of capital goods. Complete the row Capital Goods 2, in the table above, given this technological change. Enter your responses, both above and below, rounded to 1 decimal place. b. Assuming the economy wants to continue with the same quantity of consumer goods, it can have 2.8 more capital goods as a result of the technological improvement. c. Assuming the economy wants to continue with the same quantity of capital goods, it can have 15 more consumer goods as a result of the technological improvement. d. Before the technological change, the opportunity cost of the first 60 consumer goods was capital goods . e. After the technological change, the opportunity cost of the first 60 consumer goods is
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The data in the table below are for the small country of Xanadu. Assume that the economy is originally producing combination C.
A B C D E F
Capital Goods 0 5 7 9 10 11
Capital Goods 2
0
7
9.8
12.6
14
15.4
Consumer Goods 75 60 45 30 15 0
a. A technological change occurs that enables Xanadu to produce 40% more units of capital goods. Complete the row Capital Goods 2, in the table above, given this technological change. Enter your responses, both above and below, rounded to 1 decimal place.
b. Assuming the economy wants to continue with the same quantity of consumer goods, it can have
2.8
more capital goods as a result of the technological improvement.
c. Assuming the economy wants to continue with the same quantity of capital goods, it can have
15
more consumer goods as a result of the technological improvement.
d. Before the technological change, the opportunity cost of the first 60 consumer goods was
capital goods
.
e. After the technological change, the opportunity cost of the first 60 consumer goods is
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