Eco_1_Problem_Set_1_Akey

Eco_1_Problem_Set_1_Akey - Eco 1 Fall 2008 Problem set 1 1)...

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Eco 1 Fall 2008 Problem set 1 1) This can be linear or concave, with either Cotton or Soybeans on one or the other axis, but it should look something like this: Again it can be computer-generated or hand-drawn (I find PowerPoint easiest for drawing in MS Office, if it helps). The likely effect of a drought would be a restriction of yields across agriculture overall, thus Although the scale of this could be better. We observe a PPF contracting along both axes. If however new technology or farming method (which in economics would be considered the same) was introduced that allowed the yield of Soybeans to double but left that of Cotton unchanged, the new PPF would look like this:
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Eco 1 Fall 2008 Problem set 1 It has arced out along the Soybean axis, but remains the same at the Cotton corner, since the limit to production of Cotton has not increased. 2) From the following PPF B A CE D Consumption Goods Capital Goods 0 a. B, C, D and A are feasible. E is not, because it lies outside the PPF. b. B, C and D lie exactly on the PPF, so they are efficient.
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This note was uploaded on 04/09/2008 for the course ECON 001 taught by Professor Caseyquinn during the Spring '08 term at Lehigh University .

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Eco_1_Problem_Set_1_Akey - Eco 1 Fall 2008 Problem set 1 1)...

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