Given the following diagram: Production Possibilities GRAPH Capital Goods 11 A B 10 9 8 E 7 6 5 4 3 2 1 F G H Production Possibilities J 0 1 2 3 4 56 7 8 9 Consumption Goods CALCULATIONS Consumption Goods 0 1 2 3 4 5 6 7 8 Reset Consumption Goods Produced 4.0 Consumption Goods Gained/Given Up 0.0 Capital Goods Produced 7.5 Capital Goods Gained/Given Up 0.0 Instructions: Move the slider for the consumption goods at the bottom of the graph to complete the calculations. a. The production of 6 consumer goods and 7.5 capital goods is considered: (Click to select) b. Based on the graph, producing 4 consumer goods and 4 capital goods is what? (Click to select) c. What is the max number of capital goods possible to produce in the economy if it is currently producing 8 consumption goods? (enter as a whole number) d. What is the opportunity cost of producing more capital goods? (Click to select)
Given the following diagram: Production Possibilities GRAPH Capital Goods 11 A B 10 9 8 E 7 6 5 4 3 2 1 F G H Production Possibilities J 0 1 2 3 4 56 7 8 9 Consumption Goods CALCULATIONS Consumption Goods 0 1 2 3 4 5 6 7 8 Reset Consumption Goods Produced 4.0 Consumption Goods Gained/Given Up 0.0 Capital Goods Produced 7.5 Capital Goods Gained/Given Up 0.0 Instructions: Move the slider for the consumption goods at the bottom of the graph to complete the calculations. a. The production of 6 consumer goods and 7.5 capital goods is considered: (Click to select) b. Based on the graph, producing 4 consumer goods and 4 capital goods is what? (Click to select) c. What is the max number of capital goods possible to produce in the economy if it is currently producing 8 consumption goods? (enter as a whole number) d. What is the opportunity cost of producing more capital goods? (Click to select)
Chapter1: The Art And Science Of Economic Analysis
Section: Chapter Questions
Problem 2.2P
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Question
Transcribed Image Text:Given the following diagram:
Production Possibilities
GRAPH
Capital Goods
11
A
B
10
9
8
E
7
6
5
4
3
2
1
F
G
H
Production
Possibilities
J
0 1 2 3
4
56
7 8
9
Consumption Goods
CALCULATIONS
Consumption Goods
0
1
2
3
4
5
6
7
8
Reset
Consumption Goods Produced
4.0
Consumption Goods Gained/Given Up
0.0
Capital Goods Produced
7.5
Capital Goods Gained/Given Up
0.0
Instructions: Move the slider for the consumption goods at the bottom of the graph to complete the calculations.
a. The production of 6 consumer goods and 7.5 capital goods is considered: (Click to select)
b. Based on the graph, producing 4 consumer goods and 4 capital goods is what? (Click to select)
c. What is the max number of capital goods possible to produce in the economy if it is currently producing 8 consumption goods?
(enter as a whole number)
d. What is the opportunity cost of producing more capital goods? (Click to select)
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