Economics

Running head : ECONOMICS[Au merelyr s Name][Tutor s Name][Class]Question 1A8E76D54C32B1A051015202530F Fig . 1 . Production Possibilities CurveThe unbowed production possibilities abridge is based on several specialize assumptions . First , the scrimping possesses extra resources and can produce limited amounts of goods and run . Second , people and the frugality must necessitate which goods and service they go away produce and which they allow sacrifice . lead , it is clear that the economy operates at full employment and uttermost productive efficiency , with fixed resources and fixed technology , and produces however two types of different goods - automobiles and forklifts .

To promote and maintain its efficiency , the economy must always choose between the two stovepipe product outputs (for example , the economy can produce tho 6 automobiles and 12 forklifts , or 30 forklifts and no automobilesAt enamour C , the live of one more automobile will be equal to 4 .5 forklifts , trance the equal of an excess forklift will not exceed 0 .22 automobiles . The form of the slew demonstrates the law of increasing opportunity costs : the opportunity cost of each additional unit will be commodious than the cost of the preceding one (Baumol Blinder , 2008 Based on the current data , to produce 4 automobiles instead of 2 , the economy will have to forgo 6 forklifts , maculation the production of 8 automobile will require sacrific ing 9 forklifts . If the economy characteriz! ed by...If you want to get a full essay, parliamentary law it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay