Limits Alternatives and Choices Economic Problems
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Problem ABelow is a production possibilities table for consumer goods (butter) and capital goods (guns).Production PossibilitiesType of ProductionProduction Alternative AProduction Alternative BProduction Alternative CProduction Alternative DProduction Alternative EProduction Alternative FProduction Alternative GButter0123456Guns1413119740Graph the data in the table using Excel. Then, answer the following questions:What are the specific assumptions that underlie the production possibilities curve?What would be the cost of more butter, if the economy is at point C? What would be the cost of producing more guns? How does the shape of the production possibilities curve reflect the law of increasing opportunity costs?Suppose this hypothetical economy were producing only 1 item of butter and 10 guns, and this was depicted by this production possibilities table and curve. What conclusions could you draw about this economy’s resource utilization?Can this economy produce outside its current production possibilities? How can technological changes affect the production possibilities curve? How can international trade permit consumption above its production possibilities curve?Problem BWhat is an opportunity cost?How does this concept relate to the definition of economics?Which of the following decisions would entail the greater opportunity cost: allocating advertising expenditures to boost sales—or investing in a new plant and equipment? Explain.Problem CCite four examples of recent decisions that you made in which you, at least implicitly, weighed marginal cost and marginal benefit.Resources:Beggs, J. (n.d.). The production possibilities frontier. Retrieved from http://economics.about.com/od/production-possibilities/ss/The-Production-Possibilities-Frontier.htmBeggs, J. (n.d.). Supply and demand equilibrium. Retrieved from http://economics.about.com/od/market-equilibrium/ss/Supply-And-Demand-Equilibrium.htmMcAfee, P. R. (2006). Introduction to economic analysis. Retrieved from http://www.mcafee.cc/Introecon/IEA.pdfAhleresten, K. (2008). Essentials of microeconomics. London, GBR: Bookboon.Jochumzen, P. (2010). Essentials of macroeconomics. London, GBR: Bookboon. “Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”The post Limits Alternatives and Choices Economic Problems appeared first on homework crew. “Is this question part of your assignment? We Can Help!”
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