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Unformatted text preview: points) 3. Sketch a production possibilities curve and include: (a)two feasible and efficient points, (b)an unattainable point. Explain what it means when a PPC is bowed outward. (5 points) 4. Suppose a worker in Australia can produce 20 units of food or 5 units of electronics per month while a worker in Korea can produce 8 units of food or 4 units of electronics per month. Assume each country has only one worker. (10 points) a. What is the opportunity cost of a unit of food in Australia? What is the opportunity cost of a unit of electronics in Australia? b. What is the opportunity cost of a unit of food in Korea? What is the opportunity cost of a unit of electronics in Korea? c. Should the countries specialize in production or be independent? Explain your answer....
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This note was uploaded on 01/25/2012 for the course AS 195.603 taught by Professor C.b. during the Fall '11 term at Johns Hopkins.
- Fall '11