quiz1_1 - Atlm University Department of Economics Econ...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Atılım University NAME:____________________ Department of Economics Econ 101.1 / Fall 2006 QUIZ # 1 NO:____________ Section:____ Time: 20 minutes 1 . Suppose that an economy has the production possibilities frontier (PPF) shown as in the following table __________________________________________________ Possibility Good X Good Y (or alternative) (units) (units) A 0 100 B 10 75 C 20 50 D 30 25 E 40 0 a) Can this economy produce 40 units of good X and 10 units of good Y in the same period? What can you say about this possibility? (20 p. each) b) What is the opportunity cost of increasing production of Good X from 10 units to 20 units (i.e. if the economy moves from possibility
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/03/2009 for the course INDUSTRIAL IE 307 taught by Professor Arzuakyüz during the Spring '09 term at Atılım Üniversitesi.

Ask a homework question - tutors are online