Section Exercise 2 solutions

Section Exercise 2 solutions - 2011 ,Berkeley Doraiswamy...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Department of Economics               Spring  2011 University of California, Berkeley         Economics 1    Head GSI: Swetha  Doraiswamy Section Exercise 2 Suggested Solutions 1) A nation with fixed quantities of resources is able to produce any of the following  combinations of cornbread and beef in a year: Combinatio n Cornbread (millions of  loaves) Beef (thousands of  pounds) A 75 0 B 60 12 C 45 22 D 30 30 E 15 36 F 0 40 a) Using the data in the table, graph the production possibilities frontier (ppf) (with beef on the  vertical axes). Production Possibilities Frontier 0 5 10 15 20 25 30 35 40 45 0 20 40 60 80 Cornbread (loaves) PPF b)  Does the principle of “increasing opportunity cost” hold in this nation? Explain briefly.  Page  1  of 2
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Department of Economics               Spring  2011 University of California, Berkeley         Economics 1
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/14/2011 for the course ECON 1 taught by Professor Martholney during the Spring '08 term at Berkeley.

Page1 / 2

Section Exercise 2 solutions - 2011 ,Berkeley Doraiswamy...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online