The data in the table below are for the small country of Xanadu. Assume that the economy is originally producing combination C. Capital Goods Capital Goods 2 Consumer Goods A 125 B 10 100 C 14 75 D 18 50 E 20 25 F 21 0 a. A technological change occurs that enables Xanadu to produce 40% more units of capital goods. Complete the row Capital Goods 2, in the table above, given this technological change. Enter your responses, both above and below, rounded to 1 decimal place. more capital goods as a b. Assuming the economy wants to continue with the same quantity of consumer goods, it can have [ result of the technological improvement. c. Assuming the economy wants to continue with the same quantity of capital goods, it can have result of the technological improvement. d. Before the technological change, the opportunity cost of the first 100 consumer goods was e. After the technological change, the opportunity cost of the first 100 consumer goods is more consumer goods as a (Click to select) : (Click to select) +
The data in the table below are for the small country of Xanadu. Assume that the economy is originally producing combination C. Capital Goods Capital Goods 2 Consumer Goods A 125 B 10 100 C 14 75 D 18 50 E 20 25 F 21 0 a. A technological change occurs that enables Xanadu to produce 40% more units of capital goods. Complete the row Capital Goods 2, in the table above, given this technological change. Enter your responses, both above and below, rounded to 1 decimal place. more capital goods as a b. Assuming the economy wants to continue with the same quantity of consumer goods, it can have [ result of the technological improvement. c. Assuming the economy wants to continue with the same quantity of capital goods, it can have result of the technological improvement. d. Before the technological change, the opportunity cost of the first 100 consumer goods was e. After the technological change, the opportunity cost of the first 100 consumer goods is more consumer goods as a (Click to select) : (Click to select) +
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 8SQ
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Question
Transcribed Image Text:The data in the table below are for the small country of Xanadu. Assume that the economy is originally producing combination C.
F
Capital Goods
Capital Goods 2
Consumer Goods
A
0
125
B
10
100
C
14
75
D
18
50
E
20
25
21
8
a. A technological change occurs that enables Xanadu to produce 40% more units of capital goods. Complete the row Capital Goods
2, in the table above, given this technological change. Enter your responses, both above and below, rounded to 1 decimal place.
more capital goods as a
b. Assuming the economy wants to continue with the same quantity of consumer goods, it can have
result of the technological improvement.
c. Assuming the economy wants to continue with the same quantity of capital goods, it can have
result of the technological improvement.
d. Before the technological change, the opportunity cost of the first 100 consumer goods was
e. After the technological change, the opportunity cost of the first 100 consumer goods is
more consumer goods as a
(Click to select):
(Click to select)
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