Assignment in Micro-Economics
Maryland. Ridwan Reza
Department of Business Administration
Leading University, Sylhet.
Submitted Simply by:
Rahat Sarwat Md. Desenfado Sabil ID: 1001010143 Md. Saddam Hussain ID: 1001010101 Adnan Islam ID: 1001010144 Syed Shaker Ahmed ID: 1001010125 Maryland. Lahinur Rahman ID: 1001010129
Department: Organization Administration
Particular date of Submission:
28. 2009. 2010
Query No: several
Define all the following conditions carefully and present examples: PPF, scarcity, effective efficiency, advices, outputs.
Production likelihood frontier (PPF): PPF shows the maximum amount of goods that can be efficiently made by an economic climate, given it is technological know-how and the volume of available inputs. For example: In case the choice is decreased to two items, guns and butter. Details outside the PPF are unachievable. Points inside are inefficient since methods are not being fully utilized, resources are not being used correctly or obsolete production approaches are staying utilized.
Shortage: The unique characteristic associated with an economic great. That an economic good can be scarce means not that it can be rare yet only it is not freely available for the taking. To get such a fantastic, one must either produce it or perhaps offer various other economic goods in exchange. Such as: Gas, coal etc .
Successful efficiency: A predicament in which a great economy are not able to produce really one good devoid of producing fewer of another good; this implies the economy is usually on it is PPF. By way of example: If we generate more rechausser without reducing gun creation.
Inputs: Inputs are goods or services that are used to make goods and services. An economy uses its existing technology to mix inputs to produce outputs. By way of example: Consider the availability of Lasagna, we declare the eggs, flour, warmth, oven and skilled cook are the inputs.
Outputs: Results are the several useful services or goods that derive from the production method and are both consumed or employed in further more production. By way of example: Consider the availability of French fries, we declare the yummy Pizza is the output.
Issue No: five
Assume that Econoland produces haircuts and t-shirts with advices of labor. Econoland offers 1000 hours of labor available. A haircut requires [pic]hours of labor, while a t-shirt requires your five hours of labor. Construct Econoland's production-possibility frontier.
Alternative production possibilities
|Possibilities |Haircuts |Shirts (units) | | |(units) | | |A |2000 (1000hrs) |0 | |B |1600(800 hrs) |40 | |C |1200(600 hrs) |80 | |D |800(400 hrs) |120 | |E |400(200 hrs) |180 | |F |0(0 hrs) |200
Based on this kind of chart we are able to represent alternative production choices more strongly in the diagram shown in figure.
400 800 1200 1600 2000 (Haircut)
In the previously mentioned graph we illustrate the alternative production options. between two products haircuts and tshirts. When econoland use even more houses in haircuts than shirts development decreased. Along with if reduce use of several hours in haircuts than improved shirts...