Macroeconomics 9th Edition by David Colander

Exercise 8

A country has the following production possibility table:
Resources
Devoted to Clothing
Output of Clothing
Resources
Devoted Food
Output of Food
100%
20
0%
0
80
16
20
5
60
12
40
9
40
8
60
12
20
4
80
14
0
0
100
15
a. Draw the country's production possibility curve.
b. What's happening to marginal opportunity costs as output of food increases
c. Say the country gets better at the production of food.What will happen to the production possibility curve
d. Say the country gets equally better at producing both food and clothing.What will happen to the production possibility curve