Using the same resources, the economy could produce more of both goods. false
Below shows the various combinations of yam and maize that a hypothetical country can produce per farming season given her resources and employing the best technologies available. Use the information in the table to answer the questions that follow:
Production Alternatives Yam (in tons) Maize (in tons
A 0 100 B 1 96 C 2 88 D 3 76 E 4 60 F 5 40 G 6 0 (a) What is the economic name of the Table? ppf (b) What is the opportunity cost to the country for producing:
i. 1 ton of yam 96 tons of maize
ii. 3 tons of yam 76 tons of maize
iii. 100 tons of maize 0 ton of yam
iv. 40 tons of maize 5tons of yam
(c) Supposed in the previous season the country settled for alternative D. In the current season because of increased demand for maize the country plans to increase the production of maize by 10 tons:
i. What production alternative has the country settled for in the current season? Explain your answer. ii. What is the opportunity cost for the country's current choice? Explain your answer. (d) Explain the behaviour of the opportunity cost of yam in terms of maize as the country moves from alternative A through alternative D to alternative G. (e) Explain the following economic concepts:
i. Opportunity cost ii. Normal profit Productive efficiency means it is impossible to produce more of one good without decreasing the quantity that is produced of another good