Unit 1: Basic Economic Concepts

Meridia and Solara each use equal quantities of resources to produce food and capital goods. The table below shows the maximum possible production of food OR capital goods for each country.

Caldonia produces only two goods: consumer goods and capital goods. The table below shows selected points on Caldonia's production possibilities curve.

The economy of Ferndale produced the following in 2024 (all values in billions):

Country Aston and Country Burke each have 100 labor hours available. The table below shows the number of labor hours required to produce one unit of each good.

Country Riveran must decide how to allocate its limited resources between healthcare and military spending. Riveran's economy is currently experiencing 8% unemployment, and its leaders are debating budget priorities for the upcoming year.