Introduction to Economics

Question 1\n(a) The toil possibilities frontier is the limitation between those combinations of goods and services that can be produced and those that cannot (McTaggart, Findlay & Parkin, 2007). The PPF comp ares ii products and a model economy is employ where everything lives the same (ceteris paribus), i.e. production live, demand and supply etc remain the same.\n\nHere is an example of a PPF using two goods, take out and steak. On the x-axis at that place is the fare of take out which can be produced in litres and on the y-axis in that respect is the standard of steak which can be produced in kilograms.\n\nEach coiffure on the PPF is efficient. It uses all the resources available. all focus within the field of operation of the PPF is obtainable, but resources are be wasted. For example, if there are 10 cattle that can both be used for producing milk or steak, and we milk integrity and slaughter the other, the other eight-spot are out on the field eating mour ning band not producing anything, i.e. we could be each milking them or slaughtering them. Any run outside of the PPF is unobtainable, as there are not nice resources available.\n\nThe b rearline apostrophize is the cost of producing one more social unit of measurement of it. The gradient of the PPF shows the marginal cost. As more steak is produced, the marginal cost of producing milk increases. That is, the more cows that we slaughter, the less milk we are able to produce.\n\nThe marginal pull in is the public assistance received from eat one more unit of it. Marginal benefit is measurable by the most that psyche is willing to pay for some other(prenominal) unit.\n\nAs all loads on the PPF are efficient, which one blockage on the PPF is more grave than any other? It is the point where the resources are allocated efficiency, that is, we are not trading off another good that we value higher(prenominal) than the other. This point is found when the marginal cost is equ al to the marginal benefit.\n\nAs we can see, the point of intersection of the marginal benefit and marginal cost shows us the most efficient amount to produce, in this case, 5 units of steak and 20 units of milk.\n\n(b) There are two major influences which affect scotch growth. They are technological transport and capital accumulation.\n\nTechnological qualifying is the development of...If you want to film a full essay, order it on our website:

Need assistance with such assignment as write my paper? Feel free to contact our highly qualified custom paper writers who are always eager to help you complete the task on time.