ECO100Y5 Study Guide - Midterm Guide: Old Age, Opportunity Cost, Prussian P 8
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ECO100Y5 Full Course Notes
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Suppose that canadian resources can produce the following production possibilities for. 1 mark: university intercept = 60 and old age homes intercept = 50. 1 mark: ppc curve is linear (could be points) 50 f) 1 mark: no change in the university building intercept. 1 mark: old-age homes intercept = 55 (1. 1*50) Don"t worry about shape of ppc provided it only touches original ppc at university. Buildings intercept a) sketch the country"s production possibilities curve (ppco) in the space above with. Briefly explain and illustrate with some actual numbers. (1 mark) 20 old-age homes (must have old-age homes) (1 mark) d) the opportunity cost per unit of increasing the number of old-age homes from 10 to 20 is. In your diagram above, sketch the production possibilities curve (ppc1) that results from this technological change and specifically indicate the numerical intercepts of the axes (2 marks) The diagrams below represent the original equilibrium position for honey, a normal good.
