{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Answers%20to%20Review%20Problems%20for%20First%20Midterm

Answers%20to%20Review%20Problems%20for%20First%20Midterm -...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
ANSWERS TO REVIEW PROBLEM 1 Economics 102 Professor Blair 1. Consider a simple economy in which the only productive resources are four workers: Ann (A), Bill (B), Carol (C), and Dave (D). Since they have different degrees of productivity, each of these workers in one day can produce various quantities of either of two goods: xylophones (X) and yogurt (Y); these quantities are presented in the table below. Thus, for example, Bill can produce in one day EITHER 2 xylophones or 3 units of yogurt. X Y A 5 1 B 2 3 C 4 3 D 1 4 The total amounts of each good produced depend on which workers are assigned to which production task. The leftmost two columns of the table below give all of the 16 possible assignments of workers to the two goods. Complete the table by computing the total output of each good corresponding to each of the allocations of workers, following the example given in the table. (You need not write "5 + 2 =", etc.) Assigned to X Assigned to Y Output of X Output of Y ABCD none 12 0 ABC D 11 4 ABD C 8 3 ACD B 10 3
Image of page 1

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

View Full Document Right Arrow Icon