5. The table below shows a production possibility for a country called Odan. Combination Bread A...

 

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5. The table below shows a production possibility for a country called Odan. Combination Bread A b) curve? B C D E Wine 100 200 300 400 1000 900 700 400 0 a) Draw a fully labelled production possibility frontier (PPF) for Odan (5 Marks) What does it mean when Odan is producing at any point on the PPF (2 Marks) c) Assuming the economy starts at point B and moves to point D. Explain what is happening here. Calculate the opportunity cost (3 marks). Using the table given above, answer the following questions. d) Currently, there are 400 units of bread and 200 units of wine produced in Odan. Show this combination on a PPF. Is this combination efficient or inefficient? Why? (3 marks) e) Agovernment analyst argues that they could produce 600 units of bread and 300 units of wine. Show the combination on a PPF. Is it possible to produce at this point? How can they produce at this level? (4 Marks) f) Which combinations achieve productive efficiency? Are these combinations also allocatively efficient? Explain your answer in terms of these two types of efficiency (3 Marks) 5. The table below shows a production possibility for a country called Odan. Combination Bread A b) curve? B C D E Wine 100 200 300 400 1000 900 700 400 0 a) Draw a fully labelled production possibility frontier (PPF) for Odan (5 Marks) What does it mean when Odan is producing at any point on the PPF (2 Marks) c) Assuming the economy starts at point B and moves to point D. Explain what is happening here. Calculate the opportunity cost (3 marks). Using the table given above, answer the following questions. d) Currently, there are 400 units of bread and 200 units of wine produced in Odan. Show this combination on a PPF. Is this combination efficient or inefficient? Why? (3 marks) e) Agovernment analyst argues that they could produce 600 units of bread and 300 units of wine. Show the combination on a PPF. Is it possible to produce at this point? How can they produce at this level? (4 Marks) f) Which combinations achieve productive efficiency? Are these combinations also allocatively efficient? Explain your answer in terms of these two types of efficiency (3 Marks)

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a Production Possibility Frontier PPF for Odan Wine units A B C D E Bread 0 400 units 200 300 400 600 800 1000 b When Odan is producing at any point o... View the full answer