Answer to Question #196511 in Microeconomics for Dikshya

Question

1. Country A is a small island where the citizens can either grow apples and/or make shoes. The  table below shows the maximum annual output combinations of apples and shoes that can be  produced. [5] 

Maximum Annual Output  (Combinations)

Quantity of apples (Kilos)

Quantity of shoes 

(pairs)

A 

1000 

B 

800 

300

C 

600 

500

D 

400 

600

E 

200 

650

F 

0 

675

Given that their limited resources and available technology, answer the following: 

a) Draw a production possibility frontier with apples on the horizontal axis and shoes on the  vertical axis illustrating these options, showing points A–F. 

Answer 1

The answer to your question is provided in the image: