How many shirts can be produced in the economy


Problem

An economy has 100 workers. Each one can produce four cakes or three shirts, regardless of the number of other individuals producing each good. Assuming all workers are employed, draw the PPF for this economy, with cakes on the vertical axis and shirts on the horizontal axis.

(a) How many cakes can be produced in this economy when all the workers are cooking?

(b) How many shirts can be produced in this economy when all the workers are sewing?

(c) Join these points with a straight line; this is the PPF.

(d) Label the inefficient and unattainable regions on the diagram.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: How many shirts can be produced in the economy
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