please if anyone can respond to all these the table points A

please if anyone can respond to all these.

Solution

(22)

Production possibility curve can be defined as the line by joining the points of different combination of two goods which can be produced by using all available resources efficiently.

So a point inside the PPF shows the inefficiency point, a point on the PPF shows the efficient utilization of the resources while the point outside the PPF shows the point which is unattainable with the given resources and technology.

As it can be seen in the table that if the economy wants to produce 3 units of a capital good, then by using its available resources efficiently only 9 units of consumer goods can be produced with the given resources and technology.

But if the economy wants to produce 3 units of capital good and 13 units of consumer goods, then either there is need to expand the resources or improvement in the technology. Without either of this combination is not possible because this combination will lie outside of PPF.

Hence option second is the correct answer.

Option second; expand resources or improve technology.

(23)

A budget line shows the all possible combinations of two goods that can be bought with given income and prices.

As it can be seen in the graph, that a budget line is given and money income of the consumer is $50 given.

Since when Quantity of good C is 5 units, the quantity of good D is zero units. It means all money has been spent on the purchase of good C.

Hence price of good C will be= $50/5

=$10

Similarly price of good D will be = $50/10

=$5

Hence

option second is the correct answer.

Option second; the price of good C is $10 and price of good D will be $5.

(24)

A consumer good is a good which can be used directly in the available form while a capital good cannot be used directly in the given form but it is used indirectly because capital good is used for the production of the consumer goods.

Hence it can be said that the difference between the consumer good and capital good is that consumer good can be used directly and capital good is used indirectly.

Hence option fourth is the correct answer.