data show the total production (in millions) of the only two goods produced in the countries of Carleton and Cumbria. a) What is the opportunity cost of a binocular in Carleton? b) What is the opportunity cost of a camera in Cumbria? c) If, before trade, each country was devoting half its resources to producing each product, what is the total amount they were both producing? d) If the two countries were to specialize in producing the product they do best, what would be the total amount they could produce? e) What are the total gains as a result of specialization? following graph shows the production possibilities for the economy of Esher: a) What is the total cost of producing 7 pops? b) What is the total cost of producing 4 corns? c) What is the cost of moving from point b to point c? Suppose that Esher experiences a 50% increase in the productivity of producing Pops. d) Draw in the new production possibilities curve labelled PP2. e) If Esher wants to have 6 pops, how many corn can it now have?
data show the total production (in millions) of the only two goods produced in the countries of Carleton and Cumbria. a) What is the opportunity cost of a binocular in Carleton? b) What is the opportunity cost of a camera in Cumbria? c) If, before trade, each country was devoting half its resources to producing each product, what is the total amount they were both producing? d) If the two countries were to specialize in producing the product they do best, what would be the total amount they could produce? e) What are the total gains as a result of specialization? following graph shows the production possibilities for the economy of Esher: a) What is the total cost of producing 7 pops? b) What is the total cost of producing 4 corns? c) What is the cost of moving from point b to point c? Suppose that Esher experiences a 50% increase in the productivity of producing Pops. d) Draw in the new production possibilities curve labelled PP2. e) If Esher wants to have 6 pops, how many corn can it now have?
Test%20Bank%20for%20Principles%20of%20Macroeconomics%206E%20Canadian%20%20Sayre%20.docx