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Unformatted text preview: calculators when the total number of men employed rises to : Explain what causes this diminishing returns phenomenon briefly. 3. What is the opportunity cost of producing 200 calculators instead of 40? Explain the concept of opportunity cost briefly. 2 2 4. Assume that the production possibility curve above exists in 1985. Assume further that the following (separate) events took place between 1985 and 2000. Other things being equal, explain carefully how the production possibility curve would be altered. a) The use of robotics technology is introduced into computer industry. b) A strain of virus destroys a large percentage of tea plants worldwide. c) Improved harvesting methods are employed in the tea industry. d) Population growth continues at current positive rates over this period....
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This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.
- Fall '09