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# Help with two micro questions? Watch

1. The first question says that an economy only produces goods X and Y, and that the PPC is defined by the equation Y = 20 − 15X. Assuming that the country is at the full level of employment, what is the opportunity cost of producing 1 unit of Y?If I remember correctly, the options were 1/15 of a unit of X, 1/20 of a unit of X, 5 units of X, and one more that I can't recall.The second one asks to explain two things that the PPC can illustrate. This one is supposed to be an essay worth 8 points.I would really appreciate some help.
2. OC - how much of good X do you have to give up for that unit of Y?

That should be fairly simple for you to calculate tbh.

PPC - it is a trade off right, you have to choose between the good on the y- and the x-axis. So the PPC illustrates the rate (i.e. OC) of this trade off. The other thing it can show is what the economy as a whole can produce, overall. Talk about points above, on, and below the curve.
3. (Original post by danny111)
OC - how much of good X do you have to give up for that unit of Y?That should be fairly simple for you to calculate tbh. PPC - it is a trade off right, you have to choose between the good on the y- and the x-axis. So the PPC illustrates the rate (i.e. OC) of this trade off. The other thing it can show is what the economy as a whole can produce, overall. Talk about points above, on, and below the curve.
Thanks - I understand the part that you have just explained. But how do I apply it to the equation (Y = 20 − 15X)? There was no PPC drawn.
4. (Original post by likezerogravity)
Thanks - I understand the part that you have just explained. But how do I apply it to the equation (Y = 20 − 15X)? There was no PPC drawn.
The OC of producing 1 unit of Y is the number of units of X you could have produced instead with the resources you put into that 1 unit of Y. Change Y to (Y+1) on the LHS, how do you add 1 to the RHS? Can't change the constants so have to change X. -15(X -1/15) = -15X + 1. The OC is 1/15

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