# Suppose that a simple society has an economy with only one resource, labor.

Posted: January 10th, 2022

Suppose that a simple society has an economy with only one resource, labor. Labor can be used to produce only two commodities axisX, a necessity good (food), and Y, a luxury good (music and merriment). Suppose that the labor force consists of 100 workers. One laborer can produce either 5 units of necessity per month (by hunting and gathering) or 10 units of luxury per month (by writing songs, playing the guitar, dancing, and so on).

On a graph, draw the economy axis ppf. Where does the ppf intersect the Y-axis? Where does it intersect the X-axis? What meaning do those points have?

b. Suppose the economy produced at a point inside the ppf. Give at least two reasons why this could occur. What could be done to move the economy to a point on the ppf?

c. Suppose you succeeded in lifting your economy to a point on its ppf. What point would you choose? How might your small society decide the point at which it wanted to be?

d. Once you have chosen a point on the ppf, you still need to decide how your society axis’s production will be divided. If you were a dictator, how would you decide? What would happen if you left product distribution to the free market?

### Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

## Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
\$0.00