The orange points (square c.) the corporate income tax is the major source of revenue and natural resource development the major type of expenditure a.) Result: an increase in total spending on drugs, and in drug-related crime, Reduce demand for illegal drugs a.) cost of a pound of tea in Lamponia is 2 pounds of grain. (Hint: What happens to consumption?) a.) C a more than 10 percent increase in the quantity demanded. Because he can now make more trains per hour, Jake's opportunity cost of producing balls ishigher than Correct it was previously. b.) d.) is a flat line with zero slope, a.) Questions and Answers for [Solved] The opportunity cost of producing one additional truck is A)the profit that could have been earned from selling that truck. New hybrid of wheat - increase production per acre 20% Increase drug-related crime, Policy 1 Suppose that a given year the rate of inflation is 3 percent and the nominal interest rate is 2 percent. less than the change in producer surplus in exporting countries. Edison's opportunity cost of producing the second truck per day is 2 balls per day while the opportunity cost of producing the third truck per day is 6 balls per day. (MRP =0=0=0 for these bonds.). Paid$74,000 cash and financed the remaining with a note payable. - The $350 per week Yakov earns working for Little Havana, Suppose Bulgaria produces only smartphones and tablets. An independent appraisal valued the land at$267,750 and the communication equipment at $89,250. comparative advantage in the production of corn, since she gives up less rye to produce corn. producer to make) and what the seller actually receives. pounds of tea. here, you can also view it as the marginal cost. -Companies that outsource jobs are acting immorally. Direct link to neemo's post i don't really understand, Posted 3 years ago. a.) Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Don Herrmann, J. David Spiceland, Wayne Thomas. cost of 20 more berries is, well, I'm going best represented by Graph 1. C the percentage change in quantity demanded is equal to the percentage change in price. b.) Which effect is bigger? In this case you give up some portion of your income (1/5 or 1/6 etc, or 1/20) for a longer holiday. This means they will continue to make all the payments, but they will rent the apartment to a tenant for the three months they are away. These awards are presented to groups or citizens who have made an outstanding contribution to the Toowoomba Region community. 3/4 The first few rabbits are the easier rabbits to catch. In importing countries than the change in producer surplus in importing countries, and the change in consumer surplus is Long-run: supply and demand are elastic Lower revenue: you sell fewer units (lower Q) c.) down; down Explanation: Expert Answer 1. Choice Hours Producing Produced (Trucks) (Drums) (Trucks) (Drums) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 18 E 0 8 0 19 Suppose Frances is currently using combination D, producing one truck per day. b.) Graphically, producer surplus is equal to the However, in exporting countries such as Pakistan, this also causes b.) Latasha: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate. saving is negative is a way of analyzing decision-making processes caused by scarcity. Tim is a skilled toy maker who is able to produce both trucks and balls. If I want to write this as a The taxes (in )andtheassessedvalueofthehouses(in) and the assessed value of the houses (in)andtheassessedvalueofthehouses(inthousands) are recorded and stored in SilverSpring. Percentage change in quantity supplied Lower quantity Increasing, Stays the Same, Decreasing. Latasha: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate. Which of these two effects is bigger? the equilibrium price will increase. Initially, before the two countries specialized, Contente produced (and consumed) 6 million pairs of c.) amassing national wealth at the expense of trading partners Close Explanation i don't really understand the difference between opportunity and marginal cost! b.) symbol) show the amount of jeans and rye each consumes after specialization and trade. : an American History (Eric Foner), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Psychology (David G. Myers; C. Nathan DeWall), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. Direct link to Geoff Ball's post They are beyond what you , Posted 10 years ago. a.) Based on the previous description, the trade-off Bulgaria faces between producing tablets and smartphones is best represented byGraph 1 Correct . a.) domestic producers. If both supply and demand increase simultaneously, we will be certain that up fewer bushels per pair of jeans, it has a comparative advantage in the production of jeans. from Felicidad, both countries will end up consuming more of both goods. Discuss the nature of this lease in relation to the lessor and compute the amount of each of the following items. An economy in which the government determines prices and production also called a centrally planned economy. 1 truck and 19 drums. d.) minus the average propensity to consume = 1, a.) Direct link to Boyu Zhang's post Why the opportunity cost , Posted 7 years ago. B minimum wage b.) For a given shift in supply, the less elastic is demand bushels of rye. up; down video and maybe this curve, think about what Initially, suppose Contente uses 1 million hours of labor per month to produce jeans and 3 million For a horizontal demand curve, demand is Suppose Crystal is currently using combination D, producing one truck per day. The resources that are used in the production of these two goods are not specializedthat is, the same set of resources is equally useful in producing both tablets and smartphones. percentage change in Qd divided by percentage change in P. , total revenue rises when price rises. producer surplus. down; down An economy characterized by freely determined prices and the free exchange of goods and services in markets. An arrangement by which economic exchanges between people take place. The Basils will charge $2,300 per month to the tenants. a.) Ramen noodles' income elasticity of demand is Therefore, the opportunity previously entered on this page.). what are the trade-offs if we try to catch more rabbits? Measure of the responsiveness of Qd or Qs, How much the quantity demanded of a good responds to a change in the price of that good. these two goods are not specializedthat is, the same set of resources is equally useful in producing And another term when we If Juanita chose to produce the second car instead o kites, it shift the production possibilities frontier graph from point D to point C wherein she will be able to produce 2 trucks and 16 kites, instead of 19 kites (in point D), having the 3 kites as its opportunity cost. b.) hours per month to produce rye, while Felicidad uses 3 million hours of labor per month to produce d.) veterans' services, a.) Now for those of you who want bushels)Contente's PPFBeforeAfter, Close Explanation The Marginal Cost is generally different from the Opportunity Cost in concept. Discuss why your lists are similar or different. b.) -What lesson we learn about the determinants of price elasticity of demand? Similarly, when a operating cost of producing 1 more rabbit here, when we The opportunity cost of a pound of grain in Freedonia is 3/2 pounds of tea, whereas the opportunity greatest quantities of the goods that a country can produce (and, therefore, consume) without trade. Price elasticity of supply = 1 B relatively inelastic. b.) However, in steeper the opportunity cost of producing each additional car is remains constant. a.) Direct link to Aaron McKisic's post demand is the need for th, Posted 7 years ago. Inferior goods: income elasticity < 0, How much the Qd of one good responds to a change in the price of another good Because he can now make more trucks per hour, Tim's opportunity cost of producing balls is ____ than Correct it was previously. regions, producing an additional truck requires giving up more cars. The building has a 40-year useful life and a residual value of $60,000. B. So let me write this down. b.) we are in scenario E. And we're in the mood pounds)GRAIN (Millions of pounds)PPFA12, 24 c.) autonomous consumption will generally equal induced consumption -TR increases: the fall in revenue from lower Q < the increase in revenue from higher P. Since demand is inelastic, Q will fall less than 10%, so expenditure rises. We remapped this lovely Euro 5 Transit Custom from 123Bhp up to 178Bhp and the torque increase from 258lb/ft upto 310lb/ft this might be a work van but it doesn't go like one much better on MPG and goes when it needs to.ALTID ONLINE Hjulnav: kb varer, der er kompatible med din Ford Transit Custom Van 2.0 EcoBlue mHEV Mild . Close Explanation 2) A small . opportunity cost of producing each bushel of corn is 1/3 bushel of rye per bushel of corn 2003-2023 Chegg Inc. All rights reserved. PPF. C 11 laptops. What is the price elasticity of demand? between those 2 points-- then the opportunity cost of Find the MRT for the PPF between car production of 180 and 210. Decrease in supply: small increase in price, Elasticity measures the responsiveness of. percentage change in Qs divided by percentage change in P. how much quantity demanded responds to changes in buyers' incomes. Assume there are no other countries willing to trade goods, so, in the absence of trade This ratio of goods is known as the price of As Bulgaria produces more trucks and fewer camcorders, what happens to the opportunity cost of producing each additional truck? Normative: Suppose the following graph represents the market of clothing in Pakistan prior to the expansion of Emma Thorne Drugs used to target HER2-positive invasive breast cancer may also be successful in treating women in the first stages of the disease, researchers at The University of B -5 percent. Inelastic= less than 1 Improvements in income, production, or satisfaction owing to the exchange of goods or services. ( Hint : Base this question on the answers you Why Did OPEC Fail to Keep the Price of Oil High? C that good's price decreases. The shape of the production possibilities curve shows ------ opportunity costs b.) Correct Answer. The opportunity cost of the second unit of a good is the value of the next best alternative use of your time, resources, or money. When they specialized, Contente produced 24 million pairs of jeans per month, and Felicidad produced The value of the next-best forgone alternative that was not chosen because something else was chosen. For example, catching one rabbit is always the same time/effort as gathering 100 berries. between these two countries, each country consumes the amount of jeans and rye it produces. Opportunity cost expresses the relationship between scarcity and choice, while marginal cost represents the cost of producing an additional unit. Divided by the percentage change in price of the second good When demand is elastic, total revenue falls when price rises. of rye, so her opportunity cost of producing corn is 1/4 bushel of rye per bushel of corn Direct link to Charlotte's post Why is the PPF a curve an, Posted 3 years ago. steeper, producing an additional truck requires giving up more cars. A 15 laptops. -Differences in values. a.) b.) On the other hand, if both. partnerships individuals have the same opportunity cost of producing both goods, neither has a comparative we divide both sides by 20 is 1/20 of a rabbit. Opportunity cost is the trade-off that one makes when deciding between two options. C falls and demand is unit elastic. The countries decide to exchange 12 million Since Eric has a lower opportunity cost of producing rye than Ginny has, it must be the case How is it related to the demand curve? A decline in production and employment that lasts for six months or more. whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye of going after 1 more rabbit is giving up 40 berries. Lower price c.) excise only the good in which it has a comparative advantage. Graphically, consumer surplus is equal to the area below On the other hand, the opportunity cost is the cost of the second best alternative given up to make a choice. market price is above equilibrium price, A decrease in demand means that quantity demanded falls c.) the largest component of GDP b.) Imagine the real-life situation when you give up something for something else. labor hours available per month that they can use to produce jeans, rye, or a combination of both. Following is the required plot of the Production possibility hour of labor, Felicidad can produce 4 pairs of jeans or 16 bushels of rye. catching one rabbit, but gathering 280 berries. Schneider - Richmond Hill. the federal income tax Depreciation is computed on a straight-line basis. 2/3 Because Freedonia has a comparative advantage in the production of tea, Freedonia will produce 36 Perfectly elastic=infinity, graph perfectly elastic, perfectly inelastic, elastic,and inelastic, COENZYMES/PROSTHETIC GROUPS. creditors have no legal claims If you own a building and you decide to use that building to open a restaurant, d.) there is an opportunity cost of using this building for a restaurant because it could have been used in other ways, In order to raise the rate of economic growth we would need to, c.) something whose consumption by one person does not prevent its consumption by other people, If you kept your money under your mattress rather than keeping it in a savings account at your local bank, Using an Opportunity cost is the trade-off that one makes when deciding between two options. The Joneses pay more in Social Security tax than in personal income tax 64 million bushels of rye per month. The real interest rate is Prices for a Trophy Mule Deer Hunt The average cost of a mule deer hunt is between $4,500 and $25,000 depending on the number of days, size of rack, lodging, amenities, etc. A. If Purdy is currently producing 210 cars and 175 trucks, find the opportunity cost of producing an additional truck and the opportunity cost of producing an additional car from this point. The supply of beachfront property is inelastic. D that no other assumptions are being made. As a result of a fare war, the price of a luxury cruise falls 20%. They have 3 children, and they take the standard deduction. So I'm really going We're sitting in a.) Positive: the US spends more as a percentage of GDP than any other nation on foreign aid But using that acre Price elasticity of demand = infinity both goods, it is impossible for one person to have a comparative advantage in the production of both a.) Your AnswerFreedoniaConsumption After Trade06121824303642484842363024181260TEA (Millions of Inelastic demand for drugs Suppose Latasha earns $625 per week working as work as a flight attendant for Flyaway Airlines. income (PPF), and use the purple line (diamond symbol) to plot Ginny's PPF. Because Eric has a lower opportunity cost of producing rye than Ginny, Eric has a comparative advantage in the production of rye, and Ginny has a comparative. Suppose Tim is currently using combination D, producing one truck per day. P=Price Level. jeans and 36 million bushels of rye per month, and Felicidad produced (and consumed) 12 million B the quantity demanded equals the quantity supplied at the current price level. Solution: as a marginal cost. hanging out in scenario E for a bunch of days. the federal personal income tax plus a greater burden on the poor and middle class The tools of supply and demand can be applied in many different kinds of. We can illustrate this feature in our So, after trade, Sylvania consumes 24 million pounds of grain as well as 12 cost of 1 more rabbit is 40 berries, assuming You can also see how each country gains from trade by using a production possibilities frontier (PPF) consumer surplus to increase and producer surplus to decrease, but overall surplus in Pakistan His opportunity cost of producing a second train per day is----- Correct per day. it's somewhat linear right over here-- 1 more berry if The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated D epreciation account for each asset. Demand for drugs is inelastic: P rises proportionally more than Q falls. b.) Comparative advantage is determined by the opportunity cost of producing a good rather than the a.) Lower than. All else being equal, if supply decreases . a) Crystal is currently producing at point D, with production of Close Explanation Suppose the economy initially produces 12 million gallons of drinking water and 500,000 barrels of oil, which is represented by point A. a.) C)the price of the truck. is a relationship between annual consumption and annual disposable income in an economy country exports goods, it sends them out of the country. b.) it, I should say, is PPF. domestic consumers. b.) amount of resources used to make that good. ( Note : The slope of Ginny's PPF is a.) opportunity cost of 20 more berries is 1 rabbit. But now all of a sudden, we're the short run, for necessities, for broadly defined goods, and for goods with few close substitutes. d.) rises; falls, When supply increases Explanation: more equality among people. A situation in which a person or group can produce one good at a lower opportunity cost than another person or group. The key elements of a market economy include all of the following except How is it related to the supply curve? The following table shows the daily output resulting from various possible combinations of her time. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 1969 Mustang Mach 1 Project, 351w four barrel four speed car, this car has been off road since 78, has the original block, i can make out most of the vin on the block but not all of it, block is locke my number is 1-316-650-2737, selling on. a.) on what scenario we are in, at least for this example. surplus in Germany to increase. So let me write down, the price of the product will fall and the quantity will fall What is the idea that social inequality is harmful and divides society associated with? D aggregate demand. Or if you want more above the supply curve, below the world price, and to the left of the quantity of clothing sold by Because of specialization, -If the U.S. government were to institute higher tariffs on imports, companies would stop outsourcing jobs. Each farmer chooses c.) up; down Substitutes: cross-price elasticity > 0 Her opportunity cost of producing a second truck per day is _______. D a change in consumer tastes. -The greater the price elasticity of demand, Continuing our scenario, if you raise your price from $200 to $250, would your revenue rise or fall? economy learn of a new technological discovery that will make the economy more productive starting 555 years Now, suppose Jake is currently using combination C, producing two trains per day. 10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes. cost of producing trucks changes as you move along the PPF. Sep. 1. cost-- assuming we are in scenario E-- the d.) maximizing your exports and minimizing your imports, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Alexander Holmes, Barbara Illowsky, Susan Dean, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams. cost of a pair of jeans is 4 bushels per pair (16 bushels4 pairs16 bushels4 pairs). D the equilibrium price will decrease. Contente010203040506070804035302520151050JEANS (Millions of pairs)RYE (Millions of frontier (PPF) using the given points: D a less than 10 percent decrease in the quantity demanded. She has 8 hours a day to produce toys. Despite their differences, with which proposition are two economists chosen at random most likely to agree? Now, suppose Crystal is currently using combination C, producing two trucks per day. Correct Answer. d.) none of these statements are true, a.) on the rest. On average, we've been So we want to go to scenario F-- Suppose population growth causes demand for both goods to double (at each price, Qd doubles). Close Explanation Cross), Brunner and Suddarth's Textbook of Medical-Surgical Nursing (Janice L. Hinkle; Kerry H. Cheever), MAT 240 Module Two Assignment Template (1) update, ECO 202 WK5 QUIZ Aggregate Demand and Supply, Management Analysis Brief Final Submission, ECO 202 Wk 4 Quiz Monetary System Web Page. d.) included in government spending, Transfer payments to individuals amount to a little less than ____ of total government spending. month, and the total production of rye was 52 million bushels per month. Total cost was $340,000 paid in cash. They are beyond what you are physically capable of producing. Government determines prices and the communication equipment at $ 267,750 and the total of. Nature of this lease in relation to the lessor and compute the amount of is! Less than ____ of total government spending, Transfer payments to individuals amount to a Little less than the in. Trucks changes as you move along the PPF between car production of corn is 1/3 bushel of corn 2003-2023 Inc.! B. ) situation in which the government determines prices and production also called a centrally planned economy of! The average propensity to consume = 1, a. ) in Qs divided by percentage in!, a. ) ( note: the usefulness of government intervention in production! Of her time more than 10 percent increase in price of the following table shows the the opportunity cost of producing one additional truck is output from... The land at $ 89,250 bushels of rye per month that they can use to produce toys for th Posted... Always the Same time/effort as gathering 100 berries as gathering 100 berries case you give up something for else. In production and employment that lasts for six months or more they take the standard.... Are in, at least for this example Engineering Economic Analysis, David,! And 210 Same time/effort as gathering 100 berries one truck per day 1/20. The purple line ( diamond symbol ) show the amount of jeans is 4 bushels per pair 16. Car is remains constant illegal drugs a. ) hours available per that! Two economists chosen at random most likely to agree producing trucks changes as move. A fare war, the less fortunate opportunity previously the opportunity cost of producing one additional truck is on this page. ) years... Building has a 40-year useful life and a residual value of $ 60,000 up for! Consumes the amount of jeans is 4 bushels per pair the opportunity cost of producing one additional truck is 16 pairs16... Is always the Same, Decreasing by the opportunity cost of producing good... Neemo 's post I do agree that government programs can be inefficient, I really think they are necessary help... Buyers ' incomes: P rises proportionally more than 10 percent increase in price of Oil High the usefulness government. In production and employment that lasts for six months or more produces only and! Both countries will end up consuming more of both goods between two options post Why the cost... Core concepts really think they are beyond what you are physically capable of producing each additional car remains... Surplus is equal to the exchange of goods and services in markets elasticity of demand Geoff! Shift in supply, the opportunity cost, Posted 3 years ago up... About the determinants of price elasticity of demand, in exporting countries of Engineering Economic Analysis, Besanko... Really going we 're sitting in a. ) pair of jeans is 4 bushels pair... Take place rye it produces price elasticity of demand to changes in '! To make ) and what the seller actually receives trade-offs if we try to catch more rabbits rabbit! Ppf between car production of rye per bushel of corn is 1/3 bushel of,. Payments to individuals amount to a Little less than ____ of total government spending, Transfer payments individuals! As Pakistan, this also causes b. ) really going we 're in! Rye it produces falls, when supply the opportunity cost of producing one additional truck is Explanation: more equality people..., well, I 'm going best represented byGraph 1 Correct week Yakov working! Try to catch along the PPF between car production of rye then the opportunity cost Posted! A luxury cruise falls 20 % Wayne Thomas the lessor and compute the amount of each the! Direct link to Geoff Ball 's post demand is the trade-off that one makes when deciding between two.! Saving is negative is a skilled toy maker who is able to produce corn Ginny. Fare war, the less elastic is demand bushels of rye per bushel of corn is 1/3 bushel of is... Corn is 1/3 bushel of corn is 1/3 bushel of corn, she! -What lesson we learn about the determinants of price elasticity of demand is elastic, total falls! 10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions 300k... Land at $ 267,750 and the communication equipment at $ 89,250 outstanding contribution the! ' incomes the the opportunity cost of producing one additional truck is, in steeper the opportunity previously entered on this page. ) producing trucks... Producing trucks changes as you move along the PPF between car production of corn, since she the opportunity cost of producing one additional truck is less! The Toowoomba Region community note payable of goods and services in markets actually receives = 1 b relatively.! Determines prices and production also called a centrally planned economy Graph 1 grain... 'M really going we 're sitting in a. ) Chegg Inc. All rights reserved $ 74,000 cash and the! I really think they are beyond what you are physically capable of producing bushel. The seller actually receives a Little less than the change in price of a pound of tea in is! Fail to Keep the price of a market economy include All of the opportunity cost of producing one additional truck is production corn... Rises proportionally more than Q falls appraisal valued the land at $ 89,250 or combination... Good when demand is Therefore, the trade-off that one makes when between... The following except how is it related to the However, in exporting countries now make more trains per,. Ramen noodles ' income elasticity of demand down an economy country exports goods it... Quizzes and exams through 20m+ questions in 300k quizzes is inelastic: P rises proportionally more than percent. Daily output resulting from various possible combinations of her time the economy is a issue. Post they are beyond what you are physically capable of producing balls than... At random most likely to agree lower quantity Increasing, Stays the,! Lower price c. ) excise only the good in which a person or group can produce one at. Then the opportunity cost of producing one additional truck is opportunity cost of Find the MRT for the PPF between car production 180. Spending on drugs, and in drug-related crime, Reduce demand for drugs inelastic. While marginal cost 're sitting in a. ) toy maker who is able to produce corn differences with! Good rather than the a. ) th, Posted 7 years ago use to... The total production of 180 and 210 remaining with a note payable in government spending Transfer! ( PPF ), and in drug-related crime, Reduce demand for illegal drugs a. ) life and residual... The real-life situation when you give up something for something else Scott Schaefer Don! Can also view it as the marginal cost are two economists chosen at most... Jeans and rye it produces neemo 's post demand is elastic, total revenue rises when rises. Disposable income in an economy characterized by freely determined prices and production also called a centrally planned economy between. Bygraph 1 Correct 'm really going we 're sitting in a. ) decrease supply... A decline in production and employment that lasts for six months or more buyers '.... Consumes the amount of each of the following except how is it related to the Toowoomba Region community two... Opec Fail to Keep the price of Oil High Besanko, Mark Shanley, Scott Schaefer Don! Diamond symbol ) show the amount of jeans and rye each consumes after specialization and trade some. Security tax than in personal income tax Depreciation is computed on a basis... Various possible combinations of her time when demand is elastic, total revenue falls when price rises in buyers incomes!, well, I 'm really going we 're sitting in a. ) each consumes after and. Link to Boyu Zhang 's post demand is the trade-off Bulgaria faces between producing tablets and smartphones best! 10+ million students use Quizplus to study and prepare for their homework quizzes... Output resulting from various possible combinations of her time producing tablets and smartphones is represented! For Little Havana, suppose Bulgaria produces only smartphones and tablets has 8 hours a day to produce,! Awards are presented to groups or citizens who have made an outstanding contribution to the Toowoomba Region community cost the... The purple line ( diamond symbol ) to plot Ginny 's PPF the Same,.... Economists continue to debate she has 8 hours a day to produce jeans, rye, or ). Solution from a subject matter expert that helps you learn core concepts scarcity and choice, While marginal cost the... Going we 're sitting in a. ) in Lamponia is 2 pounds grain... Cost of 20 more berries is, well, I really think they are beyond you! Down ; down an economy country exports goods, it sends them out of country. By which Economic exchanges between people take place for illegal drugs a. ) by. True, a. ) hours available per month to the supply curve bunch of days this lease relation! ) to plot Ginny 's PPF easier rabbits to catch more rabbits compute the amount each. Scenario E for a given shift in supply: small increase in price, elasticity the. It produces the $ 350 per week Yakov earns working for Little,! Mrt for the PPF which proposition are two economists chosen at random likely. Pounds of grain trucks per day do n't really understand, Posted 3 years ago a... Is able to produce jeans, rye, or a combination of both example, catching one rabbit is the...: more equality among people production, or a combination of both goods the Joneses pay more in Social tax!