Question

2 3 4 5 6 Compact cars (millions per year) The figure above shows the production possibilities frontier for a country. Point D represents a combination of SUVs and Compact cars that is Attainable and inefficient Point B represents a combinatino of SUVs and Compact cars that is Attainable and inefficient Point E represents a combinatino of SUVs and Compact cars that is Unattainable QUESTION 2 10 points Save Answer Skis Snowboards Tony 15 30 Paty 123 Tony and Paty Produce Skis and Snowboards. • Tony could produce either 15 Skis in a week or 30 Snowboards in a week. • Paty could produce either 12 Skis in a week or 3 Snowboards in a week What is the opportunity cost in snowboards) of 1 Ski for Tony? (Your answer must be a number. All fractions should be entered as decimals) QUESTION 3 10 points Save Answer Skis Snowboards Tony 15 Paty 123 Tony and Paty Produce Skis and Snowboards. • Tony could produce either 15 Skis in a week or 30 Snowboards in a week. • Paty could produce either 12 Skis in a week or 3 Snowboards in a week. What is the opportunity cost in snowboards) of 1 Ski for Paty? (Your answer must be a number. All fractions should be entered as decimals.) QUESTION 4 10 points Save Answer Skis Snowboards Tony 15 30 Paty 123 Tony and Paty Produce Skis and Snowboards. • Tony could produce either 15 Skis in a week or 30 Snowboards in a week • Paty could produce either 12 Skis in a week or 3 Snowboards in a week. What is the opportunity cost of 1 Snowboard (in skis) for Tony? (Your answer must be a number. All fractions should be entered as decimals.)

Answer 1

Ans.1. Point D - represents a combination of SUVs and Compact cars that is attainable and inefficient - because at this point D all resources and technology of the production of both goods are not efficiently and fully utilized.

Point B - represents a combination of SUVs and Compact cars that is attainable and efficient - because at this point D all resources and technology of the production of both goods are utilized efficiently and fully.

Point E - represents a combination of SUVs and Compact cars that is unattainable - because with the given resources and technology of the production this point is not possible to attain.

Ans. 2. The opportunity cost of 1 ski for Tony

15 skis - 30 snowboards

1 ski - 2 snowboards

Hence, the opportunity cost of 1 ski ( in snowboard) for Tony is 2 snowboard.

Ans. 3. The opportunity cost of 1 Ski for Paty

12 skis = 3 snowboards

1 ski = 0.25 snowboard

Hence, the opportunity cost of 1 ski ( in snowboard ) for Paty is 0.25 snowboard.

Ans. 4. The opportunity cost of 1 snowboard for Tony

30 snowboard - 15 skis

1 snowboard - 0.5 ski

Hence, the opportunity cost of 1 snowboard ( in ski ) for Tony is 0.5 ski.