Question

please complete all of number 7.

it make people better off? QUESTIONS you and for other people in a worla 1. What is meant by the Invisible Hand"? How can it maken 2. What kind of economy would exist for you and for on without scarcity? Would you want or have a job in such a world ring the basic economic 3. Can scarcity and affluence exist at the same time for thes (4.lvhy must all economies devise a means for answering the hoe Yuestions of what to produce, how to produce, and who is to get the out 3) What seem to be the basic problems that low-income countries face in ce ing the gap"? 6. Three things are common to both rich and poor countries: economic dualis Imperfect economic integration, and increasing opportunity cost. What are the differences in growth potential of rich countries and poor countries? 7. Consider the hypothetical production-possibilities schedule in Table 2-5. a. Use Figure 2-6 to plot the production-possibilities curve of India from the data in Table 2-5. b. What is the rate of transformation from points B to C? c. What happens to the rate of transformation as movement along the curve occurs? Why? d. What would the rate of transformation look like if all resources used in producing wheat and trucks were equally productive in either use? Table 2-5 Production Possibilities for Wheat and Trucks, India Production Rates Product Wheat (thousands of tons) Trucks (thousands) 20 40 60 20 8. What factors could shift the production possibilities curve in Figure - ssibilities curve in Figure 2-6?

Answer 1

TRUCKS a) 70 A (0,60) 60 B. (20,53) F12 &C(40, 38) 3아 QD (60, 20) E(890) WHEAT 80 70 50 30 40 lo 20 transformation fro paiate B ta c 40-20 Rale %3D 38 - 53 Fn 20 -15 1.33 Incheases with movement aleng The Tate of trandformation ncase. the cusve It s the eppantunty the magin X In terms It cost of at measures how much of good Y is qiven up kor one more unit X on vice versa. Thas, MRT increases in absolute geod size as one mores from the top left M the PPF to the bottom kight e the PPF. trandformation wauld the two goads yate The be consfant praducig used in qually resources were aductive..