INDIVIDUAL ASSIGNMENT GROUP 1

Name: Cao Yên Đan

MSV: 11221189
Class: E-BBA 14.3

Ex1:
a, PPF reflects 2 industries which produce Car and Guided Missile

Based on the data in the table, there are increasing opportunity costs in the
production of missiles because the production of cars decreasing about 8 to 0
million cars and the production of guided missiles increased by about 0 to 30
thousand missiles. Shown by points E, D, C, B, A.
b, If the economy is currently at point C:
21000−12000
-At point C the cost of one million more cars = = 4500 guided missiles
6−4
4 𝑚𝑖𝑙𝑙𝑖𝑜𝑛−2 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 1
-At point C the cost of one thousand more guided missiles = =
27−21 3
million cars

c, Point G shows that the economy is inefficient because it does not promote and
make full use of resources and human resources, leading to no economic
efficiency.

d,
-Point H shows that the economy is impossible
-To achieve an economy at point H, the economy needs to make great progress in
technology, make use of inherent resources, and better inputs to attain H.

e,
-The blue line represents the economy's
suppose improvement occurs in the
technology of producing guided
missiles but not in the production of
cars.

-The green line represents the

economy’s reflects technological
improvement in the production of both
products.
Ex2:
a, PPF reflects 2 industries which produce wheat and cloths

b, If output of wheat and cloths are 9 tons of wheat and 4000 set of cloths,
represented at the point G:

-In fact:
+If it produces 9 tons of wheat, the most set of cloths it can produce is 9000 set of
cloths.
+If it produces 4000 set of cloths, the most of wheat it can produce is 20 tons
-But at point G shows that the economy is inefficient. This economy does not make
full use of and exploit resources.

c, If output of wheat and cloths are 20 tons of wheat and 10000 set of cloths,
represented at the point H:

-Point H shows that the economy is impossible, because in fact:

+ If it produces 20 tons of wheat, the most set of cloths it can produce is 4000 set
of cloths.
+If it produces 10000 set of cloths, the most of wheat it can produce is 0 tons

d, Opportunity costs of producing wheat and cloths:

Alternatives Output of wheat (tons) Output of cloths (1000 set)
A 25 0
B 20 4
 C 15 7
D 9 9
E 0 10

- From point B to A, the opportunity cost of producing 5 more tons of wheat is 4

thousand set of cloths.
4
=>The opportunity cost of producing 1 more ton of wheat is = 0.8
5

thousand set of cloths.

=> From point A to B the opportunity cost of producing 1000 more set of
5
cloths is = 1.25 tons of wheat.
4

-From point C to B, the opportunity cost of producing 5 more tons of wheat is 3

thousand set of cloths.
3
=>The opportunity cost of producing 1 more ton of wheat is = 0.6
5

thousand set of cloths.

=> From point B to C the opportunity cost of producing 1000 more set of
5
cloths is =1.6 tons of wheat.
3

-From point D to C, the opportunity cost of producing 6 more tons of wheat is 2

thousand set of cloths.
2
=>The opportunity cost of producing 1 more ton of wheat is = 0.3
6

thousand set of cloths.

=> From point C to D the opportunity cost of producing 1000 more set of
6
cloths is = 3 tons of wheat.
2
-From point E to D, the opportunity cost of producing 9 more tons of wheat is 1
thousand set of cloths.
1
=>The opportunity cost of producing 1 more ton of wheat is = 0.(1)
9

thousand set of cloths.

=> From point D to E the opportunity cost of producing 1000 more set of
9
cloths is = 9 tons of wheat.
1