Question

Without Trade: 32 o Gets 5 o Gives 15 o 17 o 12 oa Gives Sor Gets 15 o FROM TRADE 11. Gains from Trade: Fill he red-colored cells Quantity of 11-1. The graph aside is a production possibilities frontier in an economy 1.1 Which point is an inefficient ouome among A, B, C. D, and E? 1.2 Which point is an infeasible outéome, which can not be attainable 3,000 among A.B, C.D, and E? ,200 ,000 II-2. Production possibilities frontier shows one trade-off. It also shows another of the ten principles, so called opportunity cost. 1 When we move from the point B to A honter ,000 how many units of computers do we gain? how many units of cars do we lose computer 2.2 How many cars are to be sacrificed to get one more unit of computer? 00600 700 1,000 OQuantity of Cars Produced

Answer 1

Answer 1 .1: Point D is an inefficient as the resources are not fully utilised and the outcome of the production is inefficient.

Answer 1.2 : Point C is an infeasible outcome that cannot be attainable and not possible for the economic to achieve at that level of point.

Answer 2.1 : When in the PPC if Economy moves from point B to point A than the computer we gained is 200units.

Answer 2.2 : When the PPC moves from point B to point A than the car we losed is the 100 units.As production decreases from 700 to 600 units.