questions 5,6 all the requirements please 5. Explain how (if at all each of the
ID: 1134536 • Letter: Q
Question
questions 5,6 all the requirements please
5. Explain how (if at all each of the following events affects the location of a country's production a. The quality of education increases c. A new technique improves the efficiency of extracting copper from ore. 6. Suppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings possibilities curve: The number of unemployed workers increases A devastating earthquake destroys numerous production facilities on candy bars and bags of peanuts. Candy bars cost $0.75 each while bags of peanuts cost S1.50 each. Construct a table showing the alternative combinations of the two products that are available Plot the data in your table as a budget line in a graph. What is the slope of the budget line? What is the opportunity cost of one more candy bar? Of one more bag of peanuts? Do these opportunity costs rise, fall, or remain constant as additional units are purchased? Does the budget line tell you which of the available combinations of candy bars and bags of peanuts to buy? Suppose that you had won $30 on your ticket, not S15. Show the $30 budget line in your diagram. Has the number of available combinations increased or decreased? a. b. c. d.Explanation / Answer
(5)
(a) Increase in quality of education increases human capital, which raises the aggregate capital stock of the economy, increasing the total productive capacity in the economy. This will shift the PPF outward.
(b) Increase in number of unemployed workers decreases total output in the economy, which will shift the PPF inward.
(c) Increased efficiency in extraction of copper is a form of technological enhancement, which will increase the total productive capacity in the economy. This will shift the PPF outward.
(d) Destruction of production facilities decreases total output in the economy, which will shift the PPF inward.
NOTE: As per Answering Policy, 1st question has been answered.
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