N14-FinalExam,2013 VerA (1) Protected View) -Word gn Layout References Mailings
ID: 1119766 • Letter: N
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N14-FinalExam,2013 VerA (1) Protected View) -Word gn Layout References Mailings Review View Tell me what you want to do m the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View Enablo Editing 1-3. A country produces goods X and Y and has the folowing equation for its production possibilities frontier, which is valid for vakues of X from 0 to 10: X+4-100 Questions 1 through 3 concern this country 1. The point X-8, Y-2 is: A) attainable and efficient C) unattainable E) imaginable and infeasible B) attainable and inefficient D) unattainable and efficient F) none of the above 2. You are told that the economy consume 6 units of X. At this point on the production possibilities frontier, you would use calculus to obtain the opportunity cost of Y in terms of X as: (A) 1/12 (F) 4/3 is producing efficiently and has chosen to produce and (B1/3 (G) 8/3 (D) 3/8 (D) 163 (E) 2/3 J) noae of the above D 9/2 3. Again you are told that the economy is producing efficiently and that this time it has chosen to produce and consume 8 units of X. At this point on the production possibilities frontier, you would use calculus to obtain the opportunity cost of X in terms of Y (correct to two decimal points) as: (A) 1/12 (F) 4/3 (B1/3 (G) 8/3 (D)3/8 D 163 (E) 2/3 U) nome of the above (H) 9/2Explanation / Answer
Production function: X2 + 4Y2 = 100
1.
Equate X = 8, Y = 2,
LHS = 82 + 4(22) = 64 + 16 = 80
Since LHS is less than RHS, and X and Y lie within the range, the allocation is inefficient and attainable.
Correct option: B
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