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Question: draw a ppf below suppose that in econland only butter...

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Draw a PPF below. Suppose that in Econland only Butter and Guns can be produced and there are the following production possibilities. Econland can produce And 0 2 3 4 5 6 7 0 GUNS BUTTER 100 98 94 88 80 60 40 TP T 48 E 44 60 すー, GUNS 2. Write out the opportunity cost of each unit of a Gun that is produced. 180 3. How many guns and how much Butter should Econland produce if each unit of Gun is worth ten units of Butter on the world market? -o You are solving for the point where Econland achieves ALLOCATIVE EFFICIENCY. This is better than simply achieving productive efficiency 4. If we produce at the point with allocative efficiency how much Butter could we obtain in Econland if we traded for all the Butter we could possibly get? What if we traded for Guns instead? Could we get more than seven Guns? Show a point on the diagram (call it point X) that shows unemployed resources. 5. Suppose we reduce (but dont eliminate) unemployment. Show what happens as we move from point X to the new point Y 6. 7. Finally show (with a different color marker) what happens if technology improves in the production of Guns BUT NOT Butter. (You should understand what would be different if technology improved to produce both goods!)
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