Figure 1.1 - Production Possibilities and Opportunity Costs: Linear Model versus Non-Linear Model
In the linear production possibilities model,we assume each of five equally-sized parcels of land contributes the same to the production of food and timber: 6 units of timber or 3 units of food.
By contrast,in the non-linear model,we will assume that there are five different types of land in equal-sized plots and that each plot may contribute as follows to the production of 
-Assuming all land is equally productive in either use,how much output of each type will be produced with 2/5 of the land in timber production and 3/5 of the land in food production?
A) 12 units of timber and 9 units of food
B) 9 units of timber and 12 units of food
C) 18 units of timber and 9 units of food
D) 9 units of timber and 18 units of food
Correct Answer:
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Q22: Table 1.1 - Production possibilities and opportunity
Q23: Table 1.1 - Production possibilities and opportunity
Q24: Investment refers to all of the following
Q26: The most desirable attainable mix of output
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Q28: In the model where we assume that
Q29: Table 1.1 - Production possibilities and opportunity
Q30: Table 1.1 - Production possibilities and opportunity
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