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14. Assume the following amount of raw materials and labor required for production of a unit of products A and B,
Product A Product B
Pound of Raw materials Hours of labor
5 7
3 4
1. If the available amount of raw materials and labor are 13,400 pounds and 7,800 h, determine the outputs of A and B.
2. How do the outputs of A and B in Exercise 14 change if the amount of available raw materials and labor hours are increased to 13,800 and 8,000?
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Discuss whether you favor a larger or smaller role of government in the economy. Refer to concepts found in the reading to support your opinion.
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