ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Refer to the Interactive below:
Production Possibilities and Economic Growth
II. GRAPH
M
CALCULATIONS
Capital Goods
DHEHBANGST
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0 1 2
More →
Saving
1
3
Consumption Goods Produced
Capital Goods Produced
4 5
N
Production Possibilities (Present)
Production Possibilities (Future)
6 7 8 9 10 11 12 13 14 15
Consumption Goods
6
7
More
Consumption
4.0
7.5
Reset
Instructions: Adjust the slider and gather Information from the graph to answer the following questions.
a) If a country produces 4 units of consumption goods, how many units of capital goods can it currently produce
using all of its resources? 7.5 Ⓒ
b) If a country produces 7.5 units of capital goods, how many units of consumption goods can it currently produce?
c) If a country produces 7.5 units of capital goods now, and it continues to produce 7.5 capital goods in the future, how many units of
consumption goods can it produce in the future?
report your answer to one decimal place
d) If a country produces 9.8 units of capital goods now, and then It produces 7.5 capital goods in the future, how many units of
consumption goods can it produce in the future?
report your answer to one decimal place
expand button
Transcribed Image Text:Refer to the Interactive below: Production Possibilities and Economic Growth II. GRAPH M CALCULATIONS Capital Goods DHEHBANGST 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 1 2 More → Saving 1 3 Consumption Goods Produced Capital Goods Produced 4 5 N Production Possibilities (Present) Production Possibilities (Future) 6 7 8 9 10 11 12 13 14 15 Consumption Goods 6 7 More Consumption 4.0 7.5 Reset Instructions: Adjust the slider and gather Information from the graph to answer the following questions. a) If a country produces 4 units of consumption goods, how many units of capital goods can it currently produce using all of its resources? 7.5 Ⓒ b) If a country produces 7.5 units of capital goods, how many units of consumption goods can it currently produce? c) If a country produces 7.5 units of capital goods now, and it continues to produce 7.5 capital goods in the future, how many units of consumption goods can it produce in the future? report your answer to one decimal place d) If a country produces 9.8 units of capital goods now, and then It produces 7.5 capital goods in the future, how many units of consumption goods can it produce in the future? report your answer to one decimal place
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