# Plot the Ppc of a Nation

Good Essays
7. Plot the PPC of a nation given by the following data.

Combination Health Care All Other Goods

A 0 100

B 25 90

C 50 70

D 75 40

E 100 0

a. Calculate the marginal opportunity cost of each combination. When going from A to B the opportunity cost of each unit of Healthcare is 10/25. When going from B to C it is 20/25, from C to D it is 30/25, and from D to E it is 40/25. You can find this for any good by using the formula, Opportunity Cost = What You Lose/ What You Gain. b. What is the opportunity cost of combination C? This requires that you find the opportunity cost at a point, and not over an interval. There are various ways to do it, but the most common way is to find the opportunity cost between B and D and use that to approximate the opportunity cost at C. That is given by 50/50 = 1. This is so because in going from B to D you lose 50 units of other goods and gain 50 units of Healthcare. c. Suppose a second nation has the following data. Plot the PPC, and then determine which nation has the comparative advantage in which activity. Show whether the two nations can gain from specialization and trade.

The PPC is plotted in the attached sheet. The opportunity cost of each combination in the second country is as follows. The cost of Healthcare when going from A to B is 10/20, from B to C is 15/20, from C to D is 20/20, and from D to E is 5/20. Now 10/20 > 10/25, but for every other combination the second country has a comparative advantage in the other good. So the opportunity cost of Healthcare is higher in the second country when going from A to B but lower at every subsequent point. As you might know if one country has an advantage in one product then the other will automatically have that in the second product. Thus the second country has a comparative advantage in other goods when going from A to B and in Healthcare for all subsequent

## You May Also Find These Documents Helpful

• Good Essays

The Production Possibility Curve (PPC) shows the boundaries between attainable and unattainable levels of production for two products; in this case televisions and cars. The level of production is primarily determined by the four Factors of Production (FOPs), namely, labour, capital, land and enterprise. Opportunity Cost is the cost of economic activities that are measured by the terms of its best alternative product that is foregone as a result of producing a certain good. When the best alternative…

• 666 Words
• 3 Pages
Good Essays
• Good Essays

what they look like on the PPC (production opportunity curve). The concepts this paper would explain are: Scarcity, Choice, Opportunity Cost, Unemployment and Economic Growth. The paper would also be categorized in that order. I will state the full meaning and understanding of each concept then will show where it stands on the graph. Scarcity cost, Choice and Opportunity Cost are all closely related and you will find out how in this paper. This paper understands the PPC and how Scarcity, Choice, Opportunity…

• 525 Words
• 3 Pages
Good Essays
• Good Essays

the PRODUCTION SYSTEM PRODUCTION CONTROL is to ensure that whatever is planned and Scheduled is actually implemented and achieved. PLANNING IS ‘PLANNING THE WORK’ & CONTROL IS ‘WORKING THE PLAN’. Objectives of PPC: To Plan systematically Production related Activities to meet Targets of Production with the available resources of the firm. To Provide optimum manufacturing resources i.e. Men, Machine and Material of right quality, in right quantity, at the right…

• 6943 Words
• 52 Pages
Good Essays
• Powerful Essays

Curve (PPC) is based under the field of macroeconomics. The production possibility curve (PPC) is also termed as the production possibility frontier (PPF), a production possibility boundary or sometimes called product transformation curve. It is defined as a curve that illustrates the possibility of producing two goods or services within a specified time with all the resources given such as (labour, land, capital and the technical knowledge). As we can see, here is an example of how the (PPC) looks…

• 1267 Words
• 6 Pages
Powerful Essays
• Satisfactory Essays

|Chapter | | |7 | | | | | | |Constraint Management…

• 9435 Words
• 38 Pages
Satisfactory Essays
• Good Essays

PERENCANAAN & PENGENDALIAN PRODUKSI TIN 4113 Pertemuan 2 • Outline: – – – – – Karakteristik Peramalan Cakupan Peramalan Klasifikasi Peramalan Metode Forecast: Time Series Simple Time Series Models: • Moving Average (Simple & Weighted) • Referensi: – Smith, Spencer B., Computer Based Production and Inventory Control, Prentice-Hall, 1989. – Tersine, Richard J., Principles of Inventory and Materials Management, Prentice-Hall, 1994. – Pujawan, Demand Forecasting Lecture Note, IE-ITS, 2011…

• 602 Words
• 3 Pages
Good Essays
• Satisfactory Essays

City of Ember (2008) Plot Summary Showing all 3 plot summaries When mankind is about to come to an end, a group of scientists decide to create and populate a city deep underground. The city of Ember is to last for 200 years after which its inhabitants are to retrieve from a strong box instructions to return to the surface. Over time however, the message is lost and life in Ember is rapidly deteriorating. Their power supply is failing and food is being rationed. It's left to two young adults to…

• 402 Words
• 2 Pages
Satisfactory Essays
• Good Essays

## Plot

• 1619 Words
• 5 Pages

In this article, Goldstien attempts to describe the aspect of AIDS in Newfoundland. In order to sufficiently do so, she illustrates three main elements which relate to the expansion of the legend in the province; Cultural variability, localization and contemporary legend. The idea of doing this is to give the reader a general understanding of what stories were told in order to enhance the generation of these legends. Throughout the article, Goldstien provides examples of different versions of the…

• 1619 Words
• 5 Pages
Good Essays
• Satisfactory Essays

The event I chose to write about is a TV show called Narcos. I chose Narcos for several reasons that relate to what we are talking about in class as well as being a decent representation of what politics are like in certain situations. The Plot of Narcos is that the American Government made a deal with Columbia to track down the major cocaine suppliers and drug lords and extradite them back to the United States for processing in the 1990's. This show is based on true events and it represents many…

• 613 Words
• 3 Pages
Satisfactory Essays
• Good Essays

THE PLOT DIAGRAM The plot diagram: most people learn about it somewhere in elementary school, and indeed, it is the most elementary of tools a writer and reader can use in summarizing and outlining a story. It is so basic and flexible that pretty much every story written in existence can be outlined via the plot diagram. And yet, there are stories that, when outlined, twist the plot diagram into interesting shapes, which leads me to suspect that there is a missing step in the plot diagram: the elusive…

• 1150 Words
• 5 Pages
Good Essays