Table 3-10
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.

-Refer to Table 3-10. We could use the information in the table to draw a production possibilities frontier for Japan and a second production possibilities frontier for Korea. If we were to do this, measuring cars along the horizontal axis, then
A)the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3.
B)the slope of Japan's production possibilities frontier would be -0.2 and the slope of Korea's production possibilities frontier would be -0.33.
C)the slope of Japan's production possibilities frontier would be 0.2 and the slope of Korea's production possibilities frontier would be 0.33.
D)the slope of Japan's production possibilities frontier would be 5 and the slope of Korea's production possibilities frontier would be 3.

Question

Table 3-10
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
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-Refer to Table 3-10. We could use the information in the table to draw a production possibilities frontier for Japan and a second production possibilities frontier for Korea. If we were to do this, measuring cars along the horizontal axis, then
A)the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3. 
B)the slope of Japan's production possibilities frontier would be -0.2 and the slope of Korea's production possibilities frontier would be -0.33. 
C)the slope of Japan's production possibilities frontier would be 0.2 and the slope of Korea's production possibilities frontier would be 0.33. 
D)the slope of Japan's production possibilities frontier would be 5 and the slope of Korea's production possibilities frontier would be 3.

Quizplus · Accepted Answer

The slope of a production possibilities frontier is calculated as the change in the quantity of one good divided by the change in the quantity of the other good. In this case, measuring cars along the horizontal axis, the change in airplanes (the vertical axis) for Japan is between 60 and 20, or -40, while the change in cars is between 0 and 400, or 400. Therefore, the slope of Japan's production possibilities frontier would be -40/400 or -0.1. Similarly, the slope of Korea's production possibilities frontier would be -100/300 or -0.33.

Table 3-10 Assume That Japan and Korea Can Switch Between Producing Cars