Unit 3 Assignment Template:
Unit Number:– 3
———————————- General Instructions for all Assignments———————————–
1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format:
Course number_section number_LAST_FIRST_ unit number
2. At the top of the template, insert the appropriate information: Your Name, Course Number, Section Number and Date
3. Insert your answers below, or in the appropriate space provided for in the question. Your answers should follow the APA format with citations to your sources and, at the bottom of your last page, a list of references. Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style (double spaced, in Times New Roman, 12-point, black font). Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.
4. Provide a list of references at the end of the last page of your assignment.
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6. Any questions about the assignment, or format questions, should be directed to your course instructor.
——————————————- Career Competencies —————————————–
In this assignment, you will engage in developing the following career competencies:
Analyzing Quantitative Data
Analyzing Qualitative Data
Improving Global Awareness
——————————————- Assignment ——————————————-
1. St Atanagio is a remote island in the Atlantic. The inhabitants grow corn and breed poultry. The accompanying table shows the maximum annual output combinations of corn and poultry that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for corn production, there are fewer resources available for breeding poultry.
|Maximum annual output options||Quantity of Corn(pounds)||Quantity of Poultry(pounds)|
Examine the following production possibility frontier graph with corn on the horizontal axis and poultry on the vertical axis illustrating these options and showing points 1–7.
Can St. Atanagio produce 650 pounds of poultry and 650 pounds of corn? Explain. Where would this point lie relative to the production possibility frontier?
What is the opportunity cost of increasing the annual output of corn from 800 to 1000 pounds? Please give the amount.
- This point will exist outside the production possibility frontier and it will be possible if there is change in technology, change in natural resources, change in labor force and change in humane capital.
Opportunity cost of increasing the annual output of corn from 800 to 1000 pounds is equal to the 200 pounds of poultry. It means we have to forgo 200 pounds of poultry to increase the annual output of corn from 800 to 1000 pounds
What is the opportunity cost of increasing the annual output of corn from 200 to 400 pounds? Please give the amount.
We have to forgo 75 pounds of poultry to increase the annual output of corn from 200 to 400 pounds.So the opportunity cost of increasing the annual output of corn from 200 to 400 pounds is equal to the 75 pounds of poultry.
Please explain why the answers to parts b. and c. above are not the same? What does this imply about the slope of the production possibility frontier? Please be sure to cite the material you found in the textbook to support this answer.
In part b, we have to forgo 200 pounds of poultry to increase output of corn by 200 pounds; here the unitary slope in nature as the same quantity is needed to forgo one good, to acquire the same quantity of other good.
In part c, we have to forgo 75 pounds of poultry to increase output of corn by 200 pounds, in this case they forgo less to attain the same quantity i.e., 200 pounds of corn, so here the narrow slope in nature. The slope of PPF would get a concave shape, a curve like the inner surface of sphere because, the quantity of corn is increasing while the quantity of poultry decreasing.
2. Suppose that the supply schedule of Belgium Cocoa beans is as follows:
|Price of cocoa beans(per pound)||Quantity of cocoa beans supplied(pounds)|
Suppose that Belgium cocoa beans can be sold only in Europe. The European demand schedule for Belgium cocoa beans is as follows:
|Price of Belgium cocoa beans(per pound)||European Quantity of Belgium cocoa beans demanded(pounds)|
Below is the graph of the demand curve and the supply curve for Belgium cocoa beans. From the supply and demand schedules above, what are the equilibrium price and quantity of cocoa beans from Belgium?
The equilibrium price is $30 per pound, the quantity of cocoa from Belgium is 500 pounds.
Now suppose that Belgium cocoa beans can be sold in the U.S. The U.S. demand schedule for Belgium cocoa beans is as follows:
|Price of Belgium cocoa beans(per pound)||U.S. Quantity of Belgium cocoa beans demanded(pounds)|
What is the combined (total) demand schedule for Belgian cocoa beans that European and USA consumers buy? (Complete the table below for this part.)
The combined (total) demand schedule for Belgian cocoa beans that European and USA consumers buy are 700 pounds
|Price of Belgium cocoa beans||U.S. Quantity of Belgium cocoa beans demanded||European Quantity of Belgium cocoa beans demanded||Total Demanded|
Below is the supply and demand graph that illustrates the new equilibrium price and quantity of cocoa beans from Belgium.
From the supply schedule and the combined U.S. and European demand schedule, what will be the new price at which Belgium plantation owners can sell cocoa beans? (Keep in mind that the new price is the key to determining this answer. Pay close attention to the new demand schedule from part b.)
What price will be paid by European consumers?
- The Belgium plantation owners can sell cocoa beans for $35 per pound.
European consumers will pay $30 for Belgium cocoa beans per pound
What will be the quantity consumed by European consumers?
European consumers will consume 500 pounds of Belgium cocoa beans.
|Content||Percent Possible||Points Possible|
|correct coversheet information at the top of 1st page||4|
|APA format for answers||2|
|standard English no errors||4|
|At least ONE, or more, references||4|
|Answers: provides complete information demonstrating analysis and critical thinking:||80%||64|
|1. a. – Can this quantity be produced, where does point lie?||7|
|1. b. – What is Opportunity cost from 800 to 1,000?||7|
|1. c. – What is opportunity cost from 200 to 400?||7|
|1. d. – Why are c & d not the same, what shape of curve?||8|
|2. a. – What is equilibrium quantity and price?||7|
|2. b. – What is new demand schedule?||7|
|2. c. – What is new price?||7|
|2. d. – What price will Europeans pay?||7|
|2. e. – What quantity will Europeans buy?||7|