{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

EC111Class1Answers

EC111Class1Answers - UNIVERSITY OF ESSEX DEPARTMENT OF...

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

View Full Document Right Arrow Icon
UNIVERSITY OF ESSEX Autumn Term 2011/12 DEPARTMENT OF ECONOMICS Tim Hatton EC111 Introduction to Economics: Class Exercises 1 Outline Answers 1. a. Concave means this shape (think of looking up at the curve from the origin), rather than bending towards the origin (draw an example of a convex or straight line PPF to contrast). It means that the higher the output of one good, the greater the opportunity cost of obtaining another unit of the good in terms of the other good. [Compare the slopes at different points on the PPF, remembering that the slope measures the opportunity cost of butter] That could be because some factors of production tend to be specialised. The more we shift factors into one industry the lower is their productivity in that industry relative to the other industry. b. Inside the PPF means that (1) some productive resources are not being used, say because of unemployment, or (2) because productive resources are being allocated inefficiently.
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
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern