The graph plots investment goods (units per time) versus consumer goods (units per time). The plotted line
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Question:
The graph plots investment goods (units per time) versus consumer goods (units per time). The plotted line falls through the following points: (0, 9), (3, 8), (5, 7), (6, 6), (7, 4), (8, 0).
Use the figure above to answer the following questions.
What is the opportunity cost of increasing consumer goods from 3 units to 7 units?
What will happen to future production possibilities if investment decreases now?
What will happen to future production possibilities if only consumer goods are produced now?
Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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