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ppc , Microeconomics
two countries workland and playland have similar population and identical production possibilities curves but diffrefences . the procuction possibilities combination are as follows
point capital good consumption goods
A 0 29
B 1 19
C 2 17
D 3 14
E 4 10
F 5 5
playland is located at point B on the ppc ,and workland is located at point E. Assume that this situation continues into the future and that all other things remain the same .
a. What is workland''s oportunity cost of capital goods in terms of consumption goods?
b. what is playland oppurtunity cost of capital goods in terms of consumtion goods?
c.how would PPCsof workland and playland be expected to compare to each other 50 years and in future
Posted Date: 10/22/2012 2:06:22 PM | Location : United States
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