Authors libby rittenberg 116
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possibilities curve for eastern Leisureland (again, assume it
is linear and put bicycles on the vertical axis).
4. What is the opportunity cost of producing an additional
bowling ball measured in terms of forgone bicycles in
eastern Leisureland?
5. Explain the difference in opportunity cost between
western and eastern Leisureland. Which region has a
comparative advantage in producing bowling balls?
Bicycles?
6. Draw the production possibilities curve for Leisureland,
one that combines the curves for western and eastern
Leisureland.
7. Suppose it is determined that 400 bicycles must be
produced. How many bowling balls can be produced?
8. Where will these goods be produced?
6. The table below shows the production possibilities schedule
for an economy.
Production
Alternatives
Capital goods per
period
Consumer goods per
period
A
0
40
B
1
36
C
2
28
D
3
16
E
4
0
Attributed to Libby Rittenberg and Timothy Tregarthen
Saylor URL: />
Saylor.org
116
