Question

a. If the economy is at point A, how many tonnes of clothing and how many tonnes of food are being produced? At point Upper BB? Point A 3 tonnes of clothing and 3 tonnes of food Point Upper BB 3 tonnes of clothing and 7 tonnes of food Part 3 b. What do we know about the use of resources when the economy is at point Upper BB? When the economy is at point Upper BB the use of resources is efficient . Part 4 c. If the economy is at point Upper BB, what is the opportunity cost of producing one more tonne of clothingclothing? The opportunity cost of producing one more tonne of clothingclothing is about 0.6 tonne of food . Part 5 d. What do we know about the use of resources at point D? When the economy is at point D the use of resources is unattainable . Part 6 How would it be possible for the economy to produce at point D? Technological progress and/or capital accumulation would make it possible for the economy to produce at point D.

          a. If the economy is at point A, how many tonnes of clothing and how many tonnes of food are being produced? At point
Upper BB?
Point A
3 tonnes of clothing and 3 tonnes of food
Point Upper BB
3 tonnes of clothing and 7 tonnes of food
Part 3
b. What do we know about the use of resources when the economy is at point
Upper BB?
When the economy is at point
Upper BB
the
use of resources is
efficient
.
Part 4
c. If the economy is at point
Upper BB,
what is the opportunity cost of producing one more tonne of
clothingclothing?
The opportunity cost of producing one more tonne of
clothingclothing
is about
0.6 tonne of food
.
Part 5
d. What do we know about the use of resources at point D?
When the economy is at point D
 the
use of resources is
unattainable
.
Part 6
How would it be possible for the economy to produce at point
D?
Technological progress and/or capital accumulation
would make it possible for the economy to produce at point D.

Added by Darlene W.

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