Practice Question 9

Practice Question 9 - Smithland and Ricardoville: a) can...

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uce nothing but beans, world production will be 21 million pounds. ge in production of rice, giving up 2/3 lb of beans for each pound of rice produced. 5 10 15 Beans (Millions of Pounds) Rice (Millions of Pounds) Smithland 5 10 150 20 20 0 untries using all resources efficiently. Smithland is producing rice, Ricardoville is producing beans. e and 9 million pounds of beans lies below the World PPF Ricardoville hing but rice, world production will be 21 million pounds. World PPF The production possibilities frontiers for Ricardoville and Smithland – both countries produce Beans and Rice – are shown in the graph below: 9. Consider a basket which consists of 12 million pounds of rice and 9 million pounds of beans.
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Unformatted text preview: Smithland and Ricardoville: a) can reach this total level of production only if both countries use all of their resources efficiently. b) cannot reach this total level of production, even if they use all of their resources efficiently. c) can reach this total level production even if there exists some unemployment or inefficient use of resources in their countries. d) There is not enough information available to determine whether or not Smithland and Ricardoland could reach this level of combined output....
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