AP Macro 2.2.5 Practice-Claire Chang

pdf

School

Louisiana State University *

*We aren’t endorsed by this school

Course

Subject

Economics

Date

Jul 3, 2024

Type

pdf

Pages

Uploaded by SuperHumanSquidPerson1044

_____________ AP Macroeconomics Page 1 of 4 Assignment: Apply Concepts of Production and Trade User Name:_______________ (print clearly) Instructor: _________________ Date:__________ 1. The advantage of trade is a very important concept in economics. In examining trade between two individuals or two countries, you usually see at least one side specializing in the production of one good. A. What concept is most important in determining which good a person or nation will specialize in the production of? How can you tell which good a person or country will specialize in? (4 points) B. It's said that trade creates wealth. If wealth is determined by the total value of goods and services (including environmental goods and leisure time) people have, explain why allowing people to specialize and trade will make them wealthier. (4 points) 2. Generally, sunk costs don't affect decisions made by either consumers or firms, although sometimes it might seem that they do. For example, suppose half way through a clinical trial to develop a drug for depression, the firm decides to reconsider the viability of continuing the clinical trial. A. Are the costs incurred up to that point considered as sunk costs? (3 points) B. Suppose that the costs of continuing the trial cause the firm to stop the development of the drug. Are the costs of continuing the trial considered sunk costs? (3 points) Copyright © 2021 Apex Learning. See Terms of Use for further information. 5UUUWY[SOY_ IUYY OY YMK SUYY OSUUWYGSY OS IKYKWSOSOSM ]MOIM MUUI GSI UKWYUS UW SGYOUS ]OQQ YUKIOGQO_K OS YMK UWUI[IYOUS OS± ' UKWYUS UW IU[SYW_ ]GSYY YU YUKIOGQO_K OS YMK MUUI YMGY YMK_ MG[K G IUSUGWGYO[K GI[GSYGMK OS² SKGSOSM YMK_ SKKI YU UWUI[IK G MUUI YMGY³QQ MO[K YMKS YMK QU]KYY UUYYOGQK UUUUWY[SOY_ IUYY± 5KUUQK YUKIOGQO_K OS MUUIY YMGY YMK_ MG[K YMK GOMMKYY IUSUGWGYO[K GI[GSYGMK OS² SKGSOSM YMGY YMK_ IGS UWUI[IK G YUKIOKOI MUUI GY G QU]KW UUUUWY[SOY_ IUYY UW UWUI[IYOUS YU MO[K [U± 9MOY ]OQQ WKY[QY YU MG[K IU[SYWOKY YU MG[K G Y[WUQ[Y UK G UGWYOI[QGW GSI QU]KW UUUUWY[SOY_ IUYYY ´MUUI YOSIK YMK_ ]OQQ IKIOIGYK SUYY UK YMKOW WKYU[WIKY YU YMOY USK MUUIµ² GQQU]OSM YMKS YU GK YOMSOKOIGSYQ_ ]KGQYMOKW± 'IIOYOUSGQQ_² IU[SYWOKY IGS YWGIK YMKOW Y[WUQ[YKY UK MUUIY OSYKWSGYOUSGQQ_ KUW UYMKW UWUI[IYY YMGY YMK_ SG_ MG[K IOKKOI[QYOKY OS UWUI[IOSM± ?KY² IUYYY OSI[WWKI [U YU YMGY UUOSY ]OQQ GK IUSYOIKWKI GY Y[SQ IUYYY± 9[SQ IUYYY GWK IUYYY IG[YKI G_ UGYY IKIOYOUSY GSI OY³Y SUSK_ YMGY ]K IGS³Y MKY GGIQ ´OY GQYU IGSSUY GK IMGSMKI G_ K[Y[WK IKIOYOUSYµ± 'QQ UK YMK KOWS³Y IUYYY ]KWK KWUS YMK UGYY² YU YMK_ GWK Y[SQ IUYYY± ?KY YMK IUYYY UK IUSYOS[OSM YMK YWOGQ GWK Y[SQ IUYYY± 9MUYK IUYYY MG[K GQWKGI_ MGUUKSKI GSI IGSSUY GK WKIU[KWKI SU SGYYKW ]MGY MGUUKSY YU YMK KOWS± 9MOY SKGSY YMGY YMK IUYYY ]OQQ MG[K SU OSKQ[KSIK ]MKS IKIOIOSM YU YYUU YMK UWUI[IYOUS UK YMK IW[M±

_____________ AP Macroeconomics Page 2 of 4 Assignment: Apply Concepts of Production and Trade User Name:_______________ Instructor: _________________ Date:__________ (print clearly) 3. Economic Growth A. If an economy is experiencing economic growth, what happens to its PPF ? Show your answer on a graph, using the nation of Recyclaria, where the people produce bottles and paper. (3 points) B. Give three examples of things that would cause economic growth. (6 points) 4. When we draw a production possibilities frontier ( PPF ), we’re basically limited to two goods. This isn’t terribly realistic, but occasionally it lets us make some very important points. Consider that goods and services can be broadly defined as either consumption goods and services, such as hamburgers, televisions, and manicures, or production goods and services, such as machinery, mainframe computers, and education. A. Draw a PPF graph with consumption goods and production goods on the two axes. Mark a point on the PPF where there are a lot of consumption goods and few production goods, and label it A . Mark a point on the PPF where there are few consumption goods and a lot of production goods, and label it B . (3 points) Copyright © 2021 Apex Learning. See Terms of Use for further information. ¶±µ 9KIMSUQUMOIGQ GI[GSIKSKSY ·±µ SUWK SGY[WGQ WKYU[WIKY ¸±µ OSIWKGYKY OS QGGUW² UM_YOIGQ IGUOYGQ² M[SGS IGUOYGQ )USY[SUYOUS -UUIY 5WUI[IYOUS -UUIY

_____________ AP Macroeconomics Page 3 of 4 Assignment: Apply Concepts of Production and Trade User Name:_______________ Instructor: _________________ Date:__________ (print clearly) B. Consumption goods give us enjoyment today, but production goods allow us to increase the amount we can produce in the future. On two separate graphs, draw PPF s that represent the production possibilities this year. On the first graph, show how the PPF will shift from this year to next year if most of the goods and services produced this year are consumption goods and services. On the second graph, show how the PPF will shift from this year to the next if most of the goods and services produced this year are production goods and services. (6 points) 5. Understanding the difference between absolute and comparative advantage isn't easy. Define absolute advantage and comparative advantage in words. (8 points) 6. Table 2.1 shows how many trucks and game consoles that can be produced in a country with a fixed amount of input. Table 2.1: Production of Trucks and Game Consoles in Country X Trucks (millions) Game Consoles (millions) 50 48 46 43 40 35 10 0 0 10 20 30 40 50 60 70 Copyright © 2021 Apex Learning. See Terms of Use for further information. 'GYUQ[YK 'I[GSYGMK OY YMK GGOQOY_ YU UWUI[IK G UWUI[IY ]OYM YMK QKGYY GSU[SY UK WKYU[WIKY ´K]± YOSKµ± ' IUSUGWGYO[K GI[GSYGMK OY YMK GGOQOY_ YU UWUI[IK G UWUI[IY ]OYM YMK QU]KYY UUYYOGQK UUUUWY[SOY_ IUYY² UW YMK QU]KYY GSU[SY UK UWUI[IYOUS [GQ[K YMGY YMK_ ]U[QI GK MO[OSM [U±

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

_____________ AP Macroeconomics Page 4 of 4 Assignment: Apply Concepts of Production and Trade User Name:_______________ Instructor: _________________ Date:__________ (print clearly) A. What is the opportunity cost in trucks if Country X produces 50 game consoles instead of 40? What is the opportunity cost in trucks if Country X produces 60 game consoles instead of 50? (2 points) B. Is the opportunity cost of producing more amounts of trucks increasing, decreasing, or remaining the same? (2 points) C. What is the economic justification for the answer in part B, above? (2 points) D. What would the graphical display of this production possibilities curve look like? (5 points) E. What would happen to the production possibilities curve if country X developed a new technology that is more efficient to produce both game consoles and trucks? Only game consoles? Only trucks? (9 points) Copyright © 2021 Apex Learning. See Terms of Use for further information. ¶ MGSK IUSYUQK OY ¸¹º¹» YW[IQY ¶ MGSK IUSYUQK OK ¶»º¼» YW[IQY

Related Documents

Economic Indicator - Unemployment Assignment.pdf

Screenshot 2024-06-12 151817.png

ECO-FPX1150_SmithLashawn_Assessment1-Attempt1.docx

Exam 2 Review 1190.docx

20211_ECO2013_M6A1-Homework 6.docx

discussion 2 econ and finance.docx

ProblemSet5(1).pdf

most missing values.docx

You are a grant expert who a nonprofit agency has hired to assist with finding and obtaining grants.

Assessment Description.docx

Project Valuation.docx

ACME BLANK.xlsx

Recommended textbooks for you

Brief Principles of Macroeconomics (MindTap Cours...

Economics

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:Cengage Learning

ECON MICRO

Economics

ISBN:9781337000536

Author:William A. McEachern

Publisher:Cengage Learning

Economics Today and Tomorrow, Student Edition

Economics

ISBN:9780078747663

Author:McGraw-Hill

Publisher:Glencoe/McGraw-Hill School Pub Co

Exploring Economics

Economics

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:SAGE Publications, Inc

Principles of Economics 2e

Economics

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:OpenStax

SEE MORE TEXTBOOKS

Recommended textbooks for you

Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
ECON MICRO
Economics
ISBN:9781337000536
Author:William A. McEachern
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax