ROBOTS 60 40 30 20 10 0 0 - a 50 BEER Assuming robots stands for capital and beer consumer goods, both countries start from the same production possibilities frontier, and the growth path of country 1 is from point (a) to (b) to (c), while country 2 goes from (d) to (e) to (f) expanding their respective PPF curves, what can you conclude about these countries? O a) Country 1's preference for capital goods will allow it to surpass Country 2 in production of both capital and consumer goods. O b) This model assumes that Country 1 has the requisite infrastructure that allows the capital goods Country 1 produces to be productive, O c) Country 1 produces the right type of capital, that is productive in making goods society wants. b 10 20 30 40

ROBOTS 60 40 30 20 10 0 0 - a 50 BEER Assuming robots stands for capital and beer consumer goods, both countries start from the same production possibilities frontier, and the growth path of country 1 is from point (a) to (b) to (c), while country 2 goes from (d) to (e) to (f) expanding their respective PPF curves, what can you conclude about these countries? O a) Country 1's preference for capital goods will allow it to surpass Country 2 in production of both capital and consumer goods. O b) This model assumes that Country 1 has the requisite infrastructure that allows the capital goods Country 1 produces to be productive, O c) Country 1 produces the right type of capital, that is productive in making goods society wants. b 10 20 30 40

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A country faces diminishing marginal returns when increasing it's capital stock. If this country added 100 units of capital last year and saw their GDP rise by $1,000 per person, what would you expect to happen if they had added 200 units of capital instead? O It is impossible to tell what would happen GDP would increase by less than another $1,000 per person GDP would increase by another $1,000 per person GDP would increase by more than another $1,000 per person
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Q3) Illustrate the Production Possibility Frontier by graph from the table below and explain what will happen to the following changes: If the community decided to move from point C to D If they decided to move from E to D. If they want to produce 400 units from consumer goods and 400 units from capital goods. If they want to produce 500 units from consumer goods and 150 units from capital goods. Table shows the production possibility for total barely and lentils in Oman Point on PPT Consumer goods per year Capital goods per year A 600 150 B 500 250 C 400 350 D 300 400 E 200 500
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Q3
Review Porter’s Theory of Competitive Advantage and assess the extent to which the model canbe used to explain (fully or partially) growth and development in the Caribbean region. Howinline is the model with the views of economic development put forward by Best and Lewis? Limit answer to 200 words
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