TRADE Prior to the global pandemic, the aggregate output of sweet potatoes(S) and green bananas (G) is given in the combinations below. All figures are written in thousands of lbs. Sweet potatoes (S) Green Bananas (G) 210 180 25 150 45 120 58 90 68 60 75 30 78 80 Using the table above, answer the following questions. a) Construct Dominica's PPF. b) Explain whether the rinciple of increasing opportunity cost applies. c) Explain ND ILLUSTRATE THE EFFECTS OF THE GLOBAL PANDEMIX ON Dominica’s aggregate output.
Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered
Answer:
Given,
Different combinations of sweet potatoes (S) and green bananas (G)
| Sweet potatoes (S) | Green bananas (G) |
| 210 | 0 |
| 180 | 25 |
| 150 | 45 |
| 120 | 58 |
| 90 | 68 |
| 60 | 75 |
| 30 | 78 |
| 0 | 80 |
(a).
PPF (production possibility frontier): PPF is a curve that shows different combinations of two goods that can be produced with the given resources and given technology.
Graphical presentation:
According to the above figure, the x-axis measures the number of sweet potatoes and the y-axis measures the number of green bananas. The green concave curve shows the PPF. According to the PPF, to increase the production of S from 0 to 30, 2 units of G is being sacrificed. Furthur to increase the production of S from 30 to 60, 3 units of G is being sacrificed and so on. It can be seen that an increasing number of G is being sacrificed to increase the same number (30) of S.
Step by step
Solved in 2 steps with 2 images
