The graph below represents the Production Possibility Frontier for the country of OZ for 2 groups of goods or services: Infrastructure (like bridges and roads) and technology and research. Production Possibility Frontier - Country of Oz 12 10 0 2 4 8 10 12 14 16 18 20 22 Infrastructure From a point on the Production Possibility Frontier, the country of OZ can produce more infrastructure projects and more technology and research projects simultaneously but only up to a certain quantity. If the country of OZ is currently producing 15 infrastructure projects and wants to produce 4 more, they would give up 7 research and technology projects. If the country of OZ is currently producing 10 infrastructure projects and wants to produce 5 more, the opportunity cost would be 2 research and technology projects. The country of OZ can produce 15 infrastructure projects and 12 technology and research projects Technology and Research

Draw two Linear Production Possibilities Curves for two countries: Portugal and England and two products :Wine (kegs) and Cloth (Sheets). On Portugal's graph show the maximum production per worker of cloth sheets of 100 units on the Y axis. On the X axis show the maximum production of Wine at 150 kegs. For England's graph show the outputs at 90 cloth sheets on the Y axis and 60 Wine kegs on the X axis

Refer to the accompanying figure. If this economy were currently operating at point D, then in order to make more movies: A Movies (number per year) B D Milk (gallons per year) the first productive resources to switch to making movies should be those with the lowest opportunity cost of making milk. no productive resources would need to switch from making milk to movies because each resource should continue to be used according to its comparative advantage. no productive resources would need to switch from making milk to movies because point D is already efficient. the first productive resources to switch to making movies should be those with the highest opportunity cost of making milk.

Suppose the UK has 50 hours of labor available, and the US has 100 hours of labor available. Each can use this labor to produce either cars or bicycles. The UK can produce a car using 10 hours of labor, and a bicycle using 5 hours of labor. The US can produce a car using 5 hours of labor, and a bicycle using 4 hours of labor. Suppose that jointly, the two countries produce 15 bikes and 16 cars. Then it must be that the UK only produces bikes, and the US produces both bikes and cars.        the UK produces bikes and cars, and the US only produces cars.        the UK only produces cars, and the US only produces bikes.        the UK only produces bikes, and the US only produces cars.

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

Germany and Sweden produce cars and kitchen appliances. Germany can produce 5 million cars per year if it produces only cars and no kitchen appliances, or 10 million kitchen appliances per year if it produces only kitchen appliances and no cars. Sweden can produce 1 million cars per year if it produces only cars and no kitchen appliances, or 3 million kitchen appliances per year if it produces only kitchen appliances and no cars. What is Germany’s opportunity cost of manufacturing 1 million cars per year? (Hint: Your answer should be in terms of millions of kitchen appliances per year.) What is Sweden’s opportunity cost of manufacturing 1 million cars per year? (Hint: Your answer should be in terms of millions of kitchen appliances per year.) What is Germany’s opportunity cost of manufacturing 1 million kitchen appliances per year? (Hint: Your answer should be in terms of millions of cars per year.) What is Sweden’s opportunity cost of manufacturing 1 million kitchen appliances per…

ROBOTS 60 40 30 20 10 0 22 0 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 points (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. O d) Country 1 does not squander the wealth created by its economic growth. O e) All of the above 10 20 30 40