Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 2, Problem 1.8P
Subpart (a)
To determine
Production Possibilities Frontier.
Subpart (b)
To determine
Relevance of principle of increasing
Subpart (c)
To determine
Changes in PPF.
Subpart (d)
To determine
Production possibility frontier after new technology.
Subpart (e)
To determine
Changes in production of carpet.
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1. (Maximum length one page)
Consider an infectious disease with the following characteristics:
Individuals can exist in three states, susceptible, infected, and recovered. Once recovered, an individual
cannot be re-infected and remains immune for life.
The transmission rate, t, is 1/20.
The recovery rate, k, is 1/5.
Each person interacts randomly with others in the population and has contacts with 10 people each
time period.
There is no birth or death in the population.
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a) Draw a compartmental model for this infectious disease.
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