terrichichester-BU204-homework-unit-2

# terrichichester-BU204-homework-unit-2 - /100 Name Terri...

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Name: Terri Chichester /100 BU204 HOMEWORK - UNIT 2 Chapter 2: Problems 1, 3, 10, and 11 on pages 38-40 Chapter 2 / ECONOMIC MODELS: TRADE-OFFS AND TRADE /26 1. Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for potato production, there are fewer resources available for catching fish.

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a. Draw a production possibility frontier with potatoes on the horizontal axis and fish on the vertical axis illustrating these options, showing points A–F. (8pts) - See ‘How to do the Graphs’ in the Doc Sharing for graphing methods - (Suggestion #5, http://nces.ed.gov/nceskids/createagraph/ , is probably the best method for this particular problem) Feel free to use the sample graph below and add in the correct values given in this problem. You can edit the data for this graph by first selecting the graph, right click, select Chart Option, then edit the data. 0 100 200 300 400 500 600 700 800 0 500 1,000 1,500 Fish
b. Can Atlantis produce 500 pounds of fish and 800 pounds of potatoes? Explain. (3pts) To produce 500 pounds of fish and 800 pounds of potatoes Atlantis would have to add more workers to the mix. Atlantis might be able to produce these amounts for a short period of time but this is not a long term sustainable level of

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## This note was uploaded on 11/14/2011 for the course BU 204 204 taught by Professor Lyncheski during the Spring '11 term at Kaplan University.

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terrichichester-BU204-homework-unit-2 - /100 Name Terri...

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