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    Group Week 1: Assignmen T

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    Hải Lê
    This document contains the contents, exercises, and solutions for a group assignment on economics. It includes: 1. A revision of key terms from the previous lesson, such as scarcity, choice, opportunity cost, and production possibility frontier (PPF) curve. 2. An exercise with a production possibilities table and questions about graphing it and calculating opportunity costs of different points. 3. A second exercise with another production possibilities table and questions about identifying the PPF curve and determining inefficient points.

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    Group Week 1: Assignmen T

    Uploaded by

    Hải Lê
    111 views21 pages
    This document contains the contents, exercises, and solutions for a group assignment on economics. It includes: 1. A revision of key terms from the previous lesson, such as scarcity, choice, opportunity cost, and production possibility frontier (PPF) curve. 2. An exercise with a production possibilities table and questions about graphing it and calculating opportunity costs of different points. 3. A second exercise with another production possibilities table and questions about identifying the PPF curve and determining inefficient points.

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    Micro-Week-1

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    This document contains the contents, exercises, and solutions for a group assignment on economics. It includes: 1. A revision of key terms from the previous lesson, such as scarcity, choice, opportunity cost, and production possibility frontier (PPF) curve. 2. An exercise with a production possibilities table and questions about graphing it and calculating opportunity costs of different points. 3. A second exercise with another production possibilities table and questions about identifying the PPF curve and determining inefficient points.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    111 views21 pages

    Group Week 1: Assignmen T

    Uploaded by

    Hải Lê
    This document contains the contents, exercises, and solutions for a group assignment on economics. It includes: 1. A revision of key terms from the previous lesson, such as scarcity, choice, opportunity cost, and production possibility frontier (PPF) curve. 2. An exercise with a production possibilities table and questions about graphing it and calculating opportunity costs of different points. 3. A second exercise with another production possibilities table and questions about identifying the PPF curve and determining inefficient points.

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    GROUP

    ASSIGNMEN
    T WEEK 1
    Team 7
    TABLE OF CONTENTS
    REVISION
    1 Specific terms in the last
    lesson.

    Exercise 1
    2 Key & Steps.

    Exercise 2
    3 Key & Steps.
    1

    REVISION
    Specific terms in the last lesson.
    SCARCITY and CHOICE

    Needs and wants are HIGHER than the capacity


    of resources to satisfy them.

    -> Making CHOICES.


    OPPORTUNITY COST and PPF CURVE

    OPPORTUNITY
    PPF CURVE
    COST
    The varying amounts of two products
    The value of the things being given
    that can be produced when both
    up.
    depend on the same finite resources.
    TABLE OF CONTENTS
    REVISION
    1 Specific terms in the last
    lesson.

    Exercise 1
    2 Key & Steps.

    Exercise 2
    3 Key & Steps.
    2

    EXERCISE 1
    Key & Steps
    EXERCISE 1
    Use the following production possibilities table for war goods and
    civilian goods to answer questions a to e.

    Productive alternatives
    Type of
    A B C D E
    product

    Cars (in
    0 2 4 6 8
    millions)

    Cars (in
    30 27 21 12 0
    millions)
    EXERCISE 1
    a. Graph the data in the table.
    EXERCISE 1

    b. If the economy is currently at point C:


    ● The cost of one millions more cars is 4.5
    thousands guided missiles.
    From point C to D: Two millions more
    cars and 9000 less guided missiles.

    ● The cost of one thousand more guided


    missiles is million cars.
    From point C to B: 6000 more guided
    missiles and two millions less cars.
    EXERCISE 1

    c. Point G lies inside the curve of the graph

    -> The economy is producing inefficiently.

    ● G
    EXERCISE 1

    d. Point H lies outside the PPF curve

    -> Outside the production possibility limit of the


    ● H economy.

    -> The economy must have the growth of both


    types of products before it can attain the level of
    production indicated by point H.
    EXERCISE 1
    e. Improvement occurs in the technology of producing guided Technological improvement in the production of both products.
    missiles but not in the production of cars.
    TABLE OF CONTENTS
    REVISION
    1 Specific terms in the last
    lesson.

    Exercise 1
    2 Key & Steps.

    Exercise 2
    3 Key & Steps.
    3
    EXERCI
    SE 2
    Key & Steps
    EXERCISE 2
    Assume that a simple economy has 2 industries which produce wheat and cloths.
    Resources to produce these products are scarce and used effectively. The following table
    represents the possible combinations of output between wheat and cloths that this
    economy produces in a given year.

    Alternatives Output of wheat (tons) Output of cloths (1000 set)


    A 25 0
    B 20 4
    C 15 7
    D 9 9
    E 0 10
    EXERCISE 2
    a. The production possibility frontier (PPF) curve for this economy.
    EXERCISE 2

    b. Output of wheat and cloths are 9 tons of wheat and


    4000 set of cloths.

    -> The economy is not productive.

    -> The economy has an excess of human resources, so


    production is not maximally efficient.
    EXERCISE 2

    c. This economy cannot produce 20 tons of wheat and 10 000 set


    of cloths.

    -> This point lies outside the PPF curve.


    EXERCISE 2
    THANK YOU !
    Raise your voice if you have any question.

    We appreciate your contribution!

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