Below Is the Production Possibilities Table for the Country of Lavaland

question 105

Essay

Below is the production possibilities table for the country of Lavaland. $$\begin{array} { c c c c c } \begin{array} { c } \% \text { resources } \\\text { devoted to } \\\text { production } \\\text { of tanks }\end{array} & \text { Number of tanks } & \begin{array} { c } \% \text { resources } \\\text { devoted to } \\\text { production } \\\text { of pizza }\end{array} & \text { Number of pizzas } & \text { Row }\\0 & 0 & 100 & 15 & \mathrm{~A} \\20 & 4 & 80 & 14 & \mathrm{~B} \\40 & 7 & 60 & 12 & \mathrm{C} \\60 & 9 & 40 & 9 & \mathrm{D} \\80 & 11 & 20 & 5 & \mathrm{E} \\100 & 12 & 0 & 0 & \mathrm{~F}\end{array}$$ (a)Use the information in the table to draw the production possibilities curve (PPC)for Lavaland.Put tanks on the horizontal axis.
(b)What is the cost to Lavaland of moving from point A to point B on its PPC? And of moving from point E to point F?
(c)What general economic principle is being illustrated by your answers to part (b)above? Explain.

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Definitions:

Confabulations

Involves the creation of false memories without the intention to deceive, often occurring in patients with certain brain injuries or diseases.

Anterograde Amnesia

A condition where a person is unable to form new memories following a traumatic event, though long-term memories from before the event may remain intact.

Retrograde Amnesia

A loss of memory-access to events that occurred, or information that was learned, before an injury or the onset of a disease.

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), often associated with alcoholism, characterized by short-term memory loss and confabulation.