1. An economy produces two products, timber (T) and fish (F), according to the production possibilities...

 

Transcribed Image Text:

1. An economy produces two products, timber (T) and fish (F), according to the production possibilities table below. The usual assumptions apply. a) Plot the data from the production possibilities table on the graph provided. Place T on the vertical axis and F on the horizontal axis. Combination Timber 0 7 13 18 22 25 27 ABCDEFG Fish 65432 1 0 b) Can the economy produce 4 F and 22 of T? If not, why? maximum amount of T that can be produced in combination with 4 of F? If the economy is producing 2F and 15T, what problem is being experienced?_ What is the c) d) Assuming the economy is productively efficient, what is the opportunity cost of producing 1F instead of none? What is the opportunity cost of the second unit of F? And the third f?_ e) As more units of F are produced, what is the trend in the number of units of T that must be given up to get the extra F? Due to this trend, the shape of the production possibilities curve is to the origin. 1. An economy produces two products, timber (T) and fish (F), according to the production possibilities table below. The usual assumptions apply. a) Plot the data from the production possibilities table on the graph provided. Place T on the vertical axis and F on the horizontal axis. Combination Timber 0 7 13 18 22 25 27 ABCDEFG Fish 65432 1 0 b) Can the economy produce 4 F and 22 of T? If not, why? maximum amount of T that can be produced in combination with 4 of F? If the economy is producing 2F and 15T, what problem is being experienced?_ What is the c) d) Assuming the economy is productively efficient, what is the opportunity cost of producing 1F instead of none? What is the opportunity cost of the second unit of F? And the third f?_ e) As more units of F are produced, what is the trend in the number of units of T that must be given up to get the extra F? Due to this trend, the shape of the production possibilities curve is to the origin.

Answer rating: 100% (QA)

Answer b No the economy cannot produce 4 units of Fish and 22 units of Timber This is because the pr... View the full answer