ECON 010 Lecture 2: Recitation 2
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Recitation 2: opportunity cost, ppf questions: read the attached article from the economist regarding governments" intervention in industry. As you read the article think about how the government influences the shape of the ppf. Reading: theeconomistgovintervention. pdf (52. 435 kb: your ri will go over the following example of gains from trade. In munich, germany there is an annual 10-day celebration called oktoberfest. There are three workers who produce pretzels and cider as follows. Put cider on the horizontal axis: draw the individual ppfs. Who produces least effectively: now the workers have joined forces to get the most output. Show this point on your ppf and label it x.
