1. Assume that in cash or two economice, the United States and Greenland, there are a total of five productive units. A productive unit can be used in the production of cither Fastbacks cars or igloos. The “cost” to an economy of producting a Fastback or an igloo is measured in terms of opportunity cost, that is, the number of one good that must be given up in order to produce the other.
2. The table below summarizes the production possibilities in each of the two countries.
Assume that the countries decided on the respective production functions indicated by the asterisks.
3. Analyze the data and work through the following questions :
a. What country is best able to produce Fastbacks? Igloos?
b. In which good is the United States advantage greatest? Why?
c. Will it pay for cither country to trade with the other? Why?
d. If yes, which way should the goods flow? Why?
e. In order for there to be an exchange of gods, a price is required. What is the minimum acceptable price to cash country?
1. Assume that in cash or two economice, the United States and Greenland, there are a total of five productive units. A productive unit can be used in the production of cither Fastbacks cars or igloos. The “cost” to an economy of producting a Fastback or an igloo is measured in terms of opportunity cost, that is, the number of one good that must be given up in order to produce the other.2. The table below summarizes the production possibilities in each of the two countries.Assume that the countries decided on the respective production functions indicated by the asterisks.3. Analyze the data and work through the following questions : a. What country is best able to produce Fastbacks? Igloos? b. In which good is the United States advantage greatest? Why? c. Will it pay for cither country to trade with the other? Why? d. If yes, which way should the goods flow? Why? e. In order for there to be an exchange of gods, a price is required. What is the minimum acceptable price to cash country?
การแปล กรุณารอสักครู่..