3. Answer the following questions about the Production Possibility Frontier for the country Z producing 2...

  

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3. Answer the following questions about the Production Possibility Frontier for the country Z producing 2 groups of goods, cell phones and clothing. (a) What is gained when country Z moves from B to C? (b) What is given up when country Z moves from B to C? (c) What is the opportunity cost of producing the first two cell phones? (d) What is the opportunity cost of producing the last two cell phones? (e) What happens to the opportunity cost of cell phones as country Z produces more of them? 4. Answer the following questions about the Production Possibility Frontier for the country Z producing 2 groups of goods, cell phones and clothing. (a) Suppose country Z is producing at point F. How many more cell phones could it produce to reach efficiency? (b) Suppose country Z is producing at point F. How many more items of clothing could it produce to reach efficiency? (c) Aside from point F, list a point that is not efficient. Cell Phones-daily production 6 00 7 65 43 2 L 0 0 Production Possibility Frontier - Country Z A 0.8 5 LL F B 10,6 10,4 G 15,7 C 15,4 10 15 Clothing - Daily production D 18, 2 20 E 20,0 25 3. Answer the following questions about the Production Possibility Frontier for the country Z producing 2 groups of goods, cell phones and clothing. (a) What is gained when country Z moves from B to C? (b) What is given up when country Z moves from B to C? (c) What is the opportunity cost of producing the first two cell phones? (d) What is the opportunity cost of producing the last two cell phones? (e) What happens to the opportunity cost of cell phones as country Z produces more of them? 4. Answer the following questions about the Production Possibility Frontier for the country Z producing 2 groups of goods, cell phones and clothing. (a) Suppose country Z is producing at point F. How many more cell phones could it produce to reach efficiency? (b) Suppose country Z is producing at point F. How many more items of clothing could it produce to reach efficiency? (c) Aside from point F, list a point that is not efficient. Cell Phones-daily production 6 00 7 65 43 2 L 0 0 Production Possibility Frontier - Country Z A 0.8 5 LL F B 10,6 10,4 G 15,7 C 15,4 10 15 Clothing - Daily production D 18, 2 20 E 20,0 25

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The questions relate to the concept of the Production Possibility Frontier PPF which illustrates the combinations of output that a country can produce given its resources and technology The points on ... View the full answer