Business
Business, 03.01.2020 06:31, cloey6544

Suppose that a simple society has an economy with only one resource, labor. labor can be used to produce only two commoditieslong dashx, a necessity good (food), and y, a luxury good (music and merriment). suppose that the labor force consists of 100 workers. one laborer can produce either 5 units of necessity per month (by hunting and gathering) or 10 units of luxury per month (by writing songs, playing the guitar, dancing, and so on).a. on a graph, draw the economy axis ppf. where does the ppf intersect the y-axis? where does it intersect the x-axis? what meaning do those points have? b. suppose the economy produced at a point inside the ppf. give at least two reasons why this could occur. what could be done to move the economy to a point on the ppf? c. suppose you succeeded in lifting your economy to a point on its ppf. what point would you choose? how might your small society decide the point at which it wanted to be? d. once you have chosen a point on the ppf, you still need to decide how your society axis's production will be divided. if you were a dictator, how would you decide? what would happen if you left product distribution to the free market?

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Suppose that a simple society has an economy with only one resource, labor. labor can be used to pro...

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