Simple Economic Models - Topics for Further Study

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TOPICS FOR FURTHER STUDY

1. How would the circular flow diagram change if it also included government? What other flows could be added to make it more realistic?

2. Could a production possibilities curve be concave to the origin? Would the opportunity costs be increasing, decreasing, or constant?

3. Draw a production possibilities frontier for the example on page 54.

4. Draw a production possibilities frontier for the example on page 55.


6 hours x 20 pages of economics per hour = 120 pages of economics
6 hours x 50 pages of history per hour = 300 pages of history
4 hours x 20 pages of economics per hour = 80 pages of economics
4 hours x 50 pages of history per hour = 200 pages of history
6 hours x 20 pages of economics per hour = 120 pages of economics
6 hours x 50 pages of history per hour = 300 pages of history
4 hours x 20 pages of economics per hour = 80 pages of economics
4 hours x 50 pages of history per hour = 200 pages of history
5 hours x 50 pages of history per hour = 250 pages of history
5 hours x 30 pages of economics per hour = 150 pages of economics