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ID: 1151865 • Letter: F
Question
farmingdale.open.suny.edu/webapps/blackboard/execute/content/blankPage?cmd-view&content; id-_674893_18course id-1 cywe assume urat an ne resources are useu ecreuy, uere IS 1I0 wasie, anu 2011 d) We must stop the clock. Whenever we do any type of analysis in economics, it is important to understand that w STATIC Once we put some numbers on a page or draw a curve on a graph, in the real world those things have ch advanced mathematics, once you plug the numbers into the formulas, the world moves on. However, we use the to her task. To return to our Production Possibilities Analysis, if we have completed our inventory and we have consulte interchangeably in economics PRODUCTION POSSIBILITIES SCHEDULE FOR THE U.S., JUNE 12, 2018 (this will be on midterm) Alternative Combinations Tractors (000s) (Capital goods) Bread (000,000s) (Consumer goods) 30 28 24 18 10 Questions about the table above 1) in choice Alf we use all of our scarce resources to produce bread, what happens to the production of tractfors? 3) In choice F if we use all of our scarce resources to produce tractors, what happens to the production of bread? 4) Since bread is a symbol for consumer goods, what does this imply for the future? 5) What is the best choice? (this is a trick question) 6) How is a choice made? (not a trick question)Explanation / Answer
1. If we use all resources to produce the breads instead of the tractors, there will not any further production of tractors. The production of the tractors will be stopped.
2. Since the capital goods are important for the production of consumer good, the future production of the consumer goods will be less. The production of the consumer goods may fall to zero in the future.
3. The production of the bread becomes to zero. There will not be any further production of bread
4. Since the capital goods are important for the production of consumer goods production in the future there will be increased production of the consumer goods.
5. The best choice based on the economic condition of the country, any combination on the capital and consumer goods is efficient.
6. It will be based on the economic condition.
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