Answer to Question #234823 in Macroeconomics for Tchabu

Question

The Syejumba Farmers association allows maize farmers to get twice as much gallons of maize from their factors of production. In terms of this production possibility frontier, this means that this economy can now produce twice as much maize at each level of vigayo output. With the economy currently producing 2 Vigayo, Mwansa kabinga claims that the development of the Syejumba Farmers association allows the economy to produce more maize and more Vigayo. Do you agree? Explain carefully, using an appropriate diagram to illustrate your answer 

Answer 1

I agree

In this case, Syejumba farmers association tends to be an opportunity cost. The association briefs on the effective ideas to improve production. Through the presented concepts and supports, this allows the economy to produce much maize as well as vigayo.

Such initiatives include the processes to conserve the environment and other useful information.