EC 420 Study Guide - Quiz Guide: Indifference Curve, Autarky, Weht
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On your diagram from part c: (i) derive the. The following questions have appeared on previous versions of the first exam. This does not exhaust the list of possible exam questions. Also, be aware that if similar questions are asked on future exams, they may be asked with a new twist: consider a country with leontief preferences such that food consumption is always equal to two times clothing consumption. The country"s production possibility frontier (ppf) is described by qf = 200 - 2qc, where qf and qc are production of food and clothing and where qf 0 and. Briefly explain: fredonia is an endowment economy and small on world markets. It is endowed with qc units of clothing and qf units of food. Everyone in fredonia has identical tastes and endowments of food and clothing. Briefly explain your answers: use an indifference curve and budget line to show fredonia in autarky.
