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Chapter 4 Tutorial Questions Part 1

The document presents tutorial questions related to the economic concepts of Country A, focusing on its production possibilities and factors of production. It includes inquiries about the production possibility curve, the relationship between labor value and production, the shape of the production frontier, a specific economic formula, and the impact of apple prices on labor allocation and income distribution. These questions aim to deepen understanding of economic principles in a closed developing economy context.

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3 views1 page

Chapter 4 Tutorial Questions Part 1

The document presents tutorial questions related to the economic concepts of Country A, focusing on its production possibilities and factors of production. It includes inquiries about the production possibility curve, the relationship between labor value and production, the shape of the production frontier, a specific economic formula, and the impact of apple prices on labor allocation and income distribution. These questions aim to deepen understanding of economic principles in a closed developing economy context.

Uploaded by

thavhelalinds
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Chapter 4 Tutorial Questions

Use the following information for Country A (closed developing economy) to answer the questions
below

Description
Price of Bluetooth speakers
Price of Apples
3 factors of production
Labour Mobile factor
Capital Mainly used in the production of electronics
Land Mainly used in Agricultural production
Pb/Pa 4

1) Draw the production possibility curve for Apples and explain its function
2) True or false: If I want to produce more speakers I would make apple picking workers more
valuable in country A. Explain
3) Explain why the production possibility frontier is concave
4) Explain the following formula MPLa/MPLb = -Pb/Pa
5) What happens to the allocation of labor and the distribution of income when the prices of
Apple change? Explain using a graph

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