Question

Brown

求解第二題，感恩！

Shilp of/ACmelmdu
. Imagine asociety thatproduces military goods and

consumer goods, which we call^guns7/ and butter-
a. Draw aproducfion possibilities frontier for guns

and butter. Using the concept ofopportunity
cost, explain why it most likely hasabowed-out

shape-
tis impossible for the economy

b. Show apoint tha                           4
to achieve. Show apoint thatis feasible but

inefficient                                         人
Imagine tfhat the society has two political parties,

【9
called the Hawks (who want astrong military)
and the Doves (who wantasmaller military)-

Show apointon your production possibilities
frontier tfhat the Hawks might choose and apoint
that tfhe Doves might choose.

. Imagine tfhatan aggressiveneighboring country
reduces tfhe size ofits military As aresult. both
the Hawks and the Doves reduce their desired
producfion of guns by the same amount. Which
Party would get the bigger “peace dividend/
measured by the increase in butter production?2

Explain.

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