Chapter1Problems347

# Chapter1Problems347 - shelters The difference might be...

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Elizabeth Knowles Week 1 Assignments Chapter 1 Production Possibilities Curve Chap 1 Problem 3 Page 25 6, 0 0, 8 4.5, 2 3, 4 1.5, 6 0 2 4 6 8 10 0 2 4 6 8 10 Rooms Painted Floors Sanded 3. If all 24 hours were spent painting then six rooms could be painted by one worker. If two floors were sanded, then the cost would be that one and a half rooms could not be painted.

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Production Possibilities Curve Chapter 1 Page 25 Problem 4 12, 0 0, 16 10.5, 2 9, 4 7.5, 6 0 2 4 6 8 10 12 14 16 18 0 2 4 6 8 10 12 14 16 18 Rooms Painted Floors Sanded 4. The opportunity cost of sanding two floors would still be that the cost of one and a half rooms not being painted. Although the extra labour allows the actual production to double, opportunity costs remains the same: it still takes the same amount of time to paint rooms and sand floors. The production possibilities are doubled as labour is doubled.
a. b. The opportunity cost of building one convenience store a week is that you cannot build one homeless shelter. c. The cost of producing a second convenience store is that you cannot produce homeless
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Unformatted text preview: shelters. The difference might be accounted for because of a difference in the amount of resources required for the two different buildings: perhaps homeless shelters are bigger or require more labour to build. d. More of both outputs cannot be produced because there is a limited number of resources available, including land and labour. e. We can’t look at he graph and determine what the best point on the curve would be. It really depends on the state of community, which can fluctuate over time, and their values. For some communities, the best mix would be lots of shelters because they value charity. Some communities might find that more convenience stores were a better mix, because they value consumerism. Production Possibilities Curve Chapter 1 Question 7 Page 25 10, 0 9, 1 7, 2 4, 3 0, 4 2 4 6 8 10 12 2 4 6 8 10 12 Homeless Shelters Convience Stores...
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Chapter1Problems347 - shelters The difference might be...

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