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Cameron University Management Questions

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Question Description

1. Explain how (if at all) each of the following events affects the location of the country’s production possibility curve: (Explain your answer in a couple of sentences).

  1. The quality of education
  2. The number of unemployed workers increases
  3. A new technique improves the efficiency of extracting copper from ore
  4. A devastating earthquake destroys numerous production facilities.

2. Suppose you are given $100 budget at work that can be spent only on two items: staplers and pens. If staplers cost $10 each and pens cost $2.50 each, then the opportunity cost of purchasing one stapler is:
. 10 pens
b. 5 pens
c. 4 pens
d. zero pens

 
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