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Lecture

# revised - lecture # 1 ...

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University of Toronto St. George

Economics

ECO101H1

W.G.Wolfson

Fall

Description

ECONOMICS 100WEB PROBLEM SET 1Correction for Textbook Question 6bRevisedThe question and the solution posted on the course website do not matchHere is the question that matches the solution posted on the websiteQuestion Compute the opportunity cost of producing an extra 10 units of X if the economy is initially producing 60 units of X and 600 units of YHow does this compare to the opportunity cost if the economy were initially producing 70 units of XHere is the solution that matches the question in the textbook once the question is revisedThe initial part of the question as posed in your text does not correspond to a point on the Production Possibility CurveThe question starts from 45 units of X and 600 units of Y this point requires 100 workers in the X industry and 100 workers in the Y industry for a total of 200 workers employedBut this economy has 250 workers so X45 and Y600which requires a total of 200 workersis not on the PPCTry the question with X45 and Y900 a point on the PPCThen the solution below is accurateSolutionIf the economy is

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