The Table Below Is a Production Possibility Table for the Fictional

question 21

Essay

The table below is a production possibility table for the fictional country of Myopia.Use it to construct the corresponding production possibility curve in the quadrant below.(Label the axes.)

$$\begin{array}{l}\begin{array} { | c | c | } \hline \text { Guns } & \text { Butter } \\\hline 0 & 20 \\\hline 5 & 15 \\\hline 10 & 14 \\\hline 15 & 8 \\\hline 20 & 0 \\\hline\end{array}\\\end{array}$$ (a)Explain the meaning of a production possibilities curve.
(b)What is assumed to be constant when we draw that curve?
(c)How is a point on the curve different from (1)a point below the curve or (2)a point above the curve?
(d)How does this curve illustrate the concept of opportunity cost?
(e)How does it illustrate the principle of increasing marginal opportunity cost?

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Definitions:

Bargaining Unit

A group of employees with a clear and identifiable community of interests who are represented by a single labor union in negotiations and labor relations.

National Labor Relations Act

A foundational statute in United States labor law that guarantees the rights of employees to organize and to bargain collectively with their employers.

Strike

A collective decision by union members not to work until certain demands or conditions are met.

Replacement Workers

Individuals hired by an employer to fill the positions of striking or otherwise unavailable employees.