ECO 201 – Written AssignmentIndividuals, firms, governments, and countries are faced with choices...

Question

ECO 201 – Written AssignmentIndividuals, firms, governments, and countries are faced with choices because all resources are scarce. A production possibility curve (see below) measures the maximum combination of outputs that can be achieved from a given number of inputs. In practice economists use a production possibility curve with two goods to explain the concept of opportunity cost. In the example below the two goods that a country can produce are health care and education. Use the graph above to answer the following questions: a. How many units can be produced if a country uses all of its resources on health care? b. How many units can be produced if a country uses all of its resources on education? c. If a country is currently producing 11 units of health care and 16 units of education, what is the opportunity cost of producing 5 more units of education? While a production possibility curve describes the possible combinations of output that can be produced with a given set of inputs, it does not tell us who should receive, and in what amount, the health care and education that gets produced. Write an essay of at least 300 words but no more than 600 words in length that discusses how you would decide to distribute the health care and education that gets produced. Your essay should explain the role of critical thinking and of Saint Leo’s core values in making your decision. Instructions Please write a logically developed, unified essay that shows your understanding of the subject matter. The essay should be between 300 and 600 words in length. Make sure that you have a thesis (a main point that you are making) and develop it thoroughly and coherently. Use specific examples based on empirical evidence (from direct observation or experience) and clear, standard English. All work must be Units of Health Care Units of Education XXXXXXXXXX XXXXXXXXXXyour own or properly cited using APA, MLA, or some other standardized format for citations that is recognized in your major. Please use 12-point Times New Roman font. For line spacing, please use at least one and half spaces (avoid single spacing). Please number your pages if needed. Submit this assignment to the Dropbox no later Sunday 11:59 PM EST/EDT of Module 3. (This Dropbox basket is linked to Turnitin.)

David · Accepted Answer

Answer)    Production  Possibility  Curve  (PPC)  is  a  diagrammatic  representation  of  the  
maximum  amounts  of  production  of  two  good  that  can  be  obtained  by  an  economy.  
Assuming  that  the  technological  innovations  and  quantity  of  inputs  are  fixed  and  the  
economy  is  operating  at  it  level  of  productive  efficiency. 
A) If  a  country  uses  all  of  its  resources  on  health  care  then  it  will  be  producing  15  
units  this  is  because  by  the  very  definition  of  PPC  mentioned  above  it  is  a  
diagrammatic  representation  of  the  maximum  amounts  of  production  of  two  good  
that  can  be  obtained  by  an  economy  using  all  its  resources  efficiently.  Since,  PPC  
intersect  health  care  axis  at  15  units  it  is  the  maximum  that  a  country  can  
produce  using  all  its  resources.
B) If  a  country  uses  all  of  its  resources  on  education  then  it  will  be  producing  24  
units  this  is  because  by  the  very  definition  of  PPC  mentioned  above  it  is  a  
diagrammatic  representation  of  the  maximum  amounts  of  production  of  two  good  
that  can  be  obtained  by  an  economy  using  all  its  resources  efficiently.  Since,

ECO 201 – Written Assignment Individuals, firms, governments, and countries are faced with choices because all resources are scarce. A production possibility curve (see below) measures the maximum...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment