Saturday, February 20, 2016

Homework 1 Part A CHAPTER 1 ECONOMY Macroeconomics Principles of Macroeconomics

1. Efficiency in the production possibilities model

Suppose Germany produces only two goods: barley and digital cameras. The following graph shows Germany’s current production possibilities frontier (also known as the production possibilities curve), along with six output combinations represented by black points (plus symbols) labeled A to F.





















Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, feasible, or infeasible. Check all that apply.


















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