Consider an economy with just one technique available for the production of each good. Food Cloth 1 2 Good Labor per unit output Land per unit output a. Suppose land is unlimited but labor equals 100. Write and sketch the production possibility frontier. 1 1

Beth can read 30 pages of astronomy in an hour. She can also read 20 pages of sociology in an hour. She spends 6 hours per day studying.   **Use the blue line (circle symbol) to draw Beth's production possibilities frontier (PPF) for reading astronomy and sociology.   Diagram has Astronomy Pages on the left from 0-200 in increments of 20's On the bottom of the Diagram it lists Sociology Pages numbered the same fom 0-200 in increments of 20.   Beth's opportunity cost of reading 60 pages of sociology is ___________   pages of astronomy.

Suppose that the opportunity cost of producing 10 chickens is always 8 turkeys. Given this, the relevant production possibility curve must be: I II III IV Exlain your choice in few words

Refer to the production possibility frontiers for two friends Frodo and Sam who can both produce Ice creams and Jelly beans. Frodo's maximum production of Ice creams is 500 with no Jelly beans, or 2,000 Jelly beans with no Ice creams. Sam's maximum production of Ice creams is 600 with no Jelly beans, or 1,200 Jelly beans with no Ice creams. ICE CREAMS ICE CREAMS 600 500 1200 JELLY BEANS 2000 JELLY BEANS Frodo' PPF Sam's PPF Answer briefly these TWO questions in the box space provided below. Part A: Assuming efficient production without trade, derive the maximum amount of Jelly beans that can be produced by Sam along with 300 Ice creams. Describe your steps in detail. Part B: Assume that Frodo and Sam agree to specialize in production and trade between themselves. Frodo offers 1,000 Jelly beans to Sam in exchange for 300 lce creams. Would Sam agree to this trade?

Table 2-1 Production Possibilities. Couches 150 300 450 Refer to Table 2-1. If the production possibilities frontier is bowed outward, then which of the following could be the maximum number of chairs produced when 300 couches are produced? 8,100. Chairs 10,000 9,000 2 8,400. 8,000. 6,800.