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Global Economic Environment

In: Business and Management

Submitted By dcdjshoe
Words 515
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Assignment 1 Questions
Derrick Shoemaker 10/14/2012 MBA6008 - Global Economic Environment

Assignment 1 Questions

Question 5 page 21
a) Chart of production possibities, the production function shows the relationship between the quantity of inputs used in production and the quantity of output resulting from production.
b) Economy is at "C" then automobile will be at "6" and forklifts would be at "19"
Notice that the production possibility curve slopes downward from left to right that means that there is an inverse relationship between automobiles and forklifts. So this would be a representation of its shape.
c) In the law of opportunity when the slop is steep there's a high opportunity cost for automobiles and low opportunity for forklifts. But that of that it being flat of 3 automobiles to 20 forklifts the opportunity for forklifts are higher to automobiles.
d) 1. No 2. When technology improves, when more resources are discovered it will give more output with the same inputs. What I mean is that when technology improves the entire production possibility curve shifts outward. 3. As with technology this would also increase in international growth which would lead to growth in the production curve. This also would state that current production possibilities could outgrow it production curve.

Income per year | | Savings per year | | | | 20,000 | | 1500 | 15,000 | | 1000 | 10,000 | | 500 | 5,000 | | 0 | 0 | | -500 |

Question 3 page 27
a) This would be considered a positive slope.
b) The vertical intercept is negative five hundred dollars.
C) The saving at an income of $12,500 would be at $7,000.
d)
Slope= Vertical Change/ Horizontal change .39= -500/5,000
Problem 4 page...

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