Economics

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

To promote and maintain its efficiency , the economy must always choose between the two take up product outputs (for example , the economy can produce tho 6 automobiles and 12 forklifts , or 30 forklifts and no automobilesAt occlusion C , the live of one more automobile will be equal to 4 .5 forklifts , trance the comprise of an bare(a) forklift will not exceed 0 .22 automobiles . The form of the prune demonstrates the law of increasing opportunity costs : the opportunity cost of each additional unit will be prominent 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 , small-arm the production of 8 automobile will require sacrificing 9 forkl ifts . If the economy characterized by...If ! you want to get a full essay, parliamentary law it on our website: BestEssayCheap.com

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