ECS2601 ✨LATEST EXAM PACK 2 14 2020 (ECS2601)

ECS2601_EXAMPACKS007_PART_2 1a. Consider the following baskets of goods: FOOD CLOTHING A 8 3 B 6 6 C 3 8 If preferences satisfy all requirements, is A preferred to C or C to A? Explain your answer. (4 marks) Basket A has more food than basket C. Basket C has more clothing than basket A. Therefore, basket A and C cannot be compared without additional information. 1b. An island economy produces only two goods – coconuts and pineapples. There are five people (A, B, C, D and E) living ...