Production possibilities-capital goods and consumer goods

Reference no: EM13687405

Draw the probable 'production possibilities curve for an economy which produces 'Capital' goods and 'Consumer' goods.

1. Assuming that the Economy is producing approximately twice the level of customer goods as opened to Capital goods, indentify this production combination on the graph and label it 'Point A'.

2. As an economist you are asked to suggest a dissimilar combination of production in order to promote more growth in the Economy. Identify your choice on the graph and label it 'Point C'. Identify or describe the costs of moving from 'Point A' to 'Point C'.

Reference no: EM13687405

Questions Cloud

Draw the circular flow model of a simple economy : Draw the Circular Flow Model of a simple economy with the roles of firms, Households, Government and a foreign sector. In addition, identify the factor and product markets in this economy. Identify in the diagram the flows for all injections and leak..

Purchased a zero coupon bond one year ago : Purchased a zero coupon bond one year ago for 109.83. The market interest rate is now 9 percent. If the bond had 25 years to maturity when you originally purchased it, what was your total return for the past year?

Product market-provable supply and demand curve : Consider the product market for 'New York' steaks. Draw the provable supply and demand curve for this product and identify the equilibrium price and quantity. Consider the effect of a 'snafu' in the withholding tax on all consumers in this market whi..

An investor is in the 28 percent income tax bracket : An investor is in the 28 percent income tax bracket

Production possibilities-capital goods and consumer goods : Draw the probable 'production possibilities curve for an economy which produces 'Capital' goods and 'Consumer' goods. Assuming that the Economy is producing approximately twice the level of customer goods as opened to Capital goods, indentify this pr..

What does the term effective organization mean to you : What does the term effective organization mean to you

Find the degree of combined leverage : How much should she contribute each year to meet her objectives and Find the degree of combined leverage

Decreasing unemployment rate causes economic growth : Economists have observed that as an economy grows the unemployment rate tends to fall. Which statement is most probable to be correct?

Trade on the real returns on dry land and wetland : Decide the effect of trade on the real returns on dry land and wetland (call nominal returns RD and RW). Hint: how do changes in LC and LR affect the marginal product of land?

User Account

All Pages