1. If a certain combination of goods or services lies outside the production possibilities curve of aneconomy, which of the following is true? ((A) Effective trade barriers have reduced foreign imports into the economy.(B) New technology is being used in production.(C)Resources are not available to achieve that combination of goods or services.(D)Resources are not being used efficiently to achieve that combination of goods orservices.(E) Resources are being used at a more rapid rate than they were in the past.2. According to the graph left, an increase in aggregate supplywill most likely cause income and employment to change inwhich of the following ways? (Aggregate SupplyAggregate DemandGROSS DOMESTIC PRODUCTIncomeEmployment(A) Decrease(B) Decrease(C) No change(D) Increase(E) IncreaseDecreaseIncreaseIncreaseDecreaseIncreasePRICE LEVEL

Production possibility curve shows the different combinations of two goods that can be produced with…

1. If a certain combination of goods or services lies outside the production possibilities c economy, which of the following is true? ( (A) Effective trade barriers have reduced foreign imports into the economy. (B) New technology is being used in production. (C)Resources are not available to achieve that combination of goods or services. (D)Resources are not being used efficiently to achieve that combination of goods

1. If a certain combination of goods or services lies outside the production possibilities c economy, which of the following is true? ( (A) Effective trade barriers have reduced foreign imports into the economy. (B) New technology is being used in production. (C)Resources are not available to achieve that combination of goods or services. (D)Resources are not being used efficiently to achieve that combination of goods

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Indicate whether each of the following statements is true or false. Statement True False 1. There can be no gains from trade between two countries if one of them has an absolute advantage in the production of all goods. 2. Comparative advantage determines the gains from specialization and trade. 3. If a certain trade is good for one country, it can't be good for the other country. 4. Two individuals can benefit from specialization and trade if they agree upon a price that lies between their opportunity costs of producing the good. 5. When a country opens to trade, people working in industries producing goods that the country exports are harmed by the trade.
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9. Suppose China can produce 60 units of medications or 60 units of furniture with one unit of resources. The USA can produce 40 units of medications or 20 units of furniture with one unit of resources. a) Determine the opportunity cost of medication in China. b) Determine the opportunity cost of medication in the USA. c) Determine the opportunity cost of furniture in China. d) Determine the opportunity cost of furniture in the USA.
Explain how each event affects production possibilities. (a) The population becomes more educated over time as the number of high school dropouts falls and the number of college graduates rises.
I choose IKEA COMPANY Production possibility curve (PPC) Scenario1: a. If your company can make two goods, use a numerical table and list different combinations of two goods your company can make b. Draw a PPC and show the different combinations on the graph. Show the attainable and unattainable output levels on the graph. c. Show the opportunity cost of one good in terms of another. d. What happens to the opportunity cost? (Increases, decreases or remain constant) LAW OF DEMAND Scenario 2 a. If the company decides to eam more profits and hence decide to increase the price of their product, Use a numerical table of price and demand to explain. b. What effect this increase in prices will have on consumers demand? Is it called a change in quantity demand or change in demand? Why? c. Draw and show this effect with the help of a demand curve. ELASTICITY OF DEMAND Scenario 3: a. If your company's product has many substitutes in the market, what happens to the elasticity of your product? If…
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Which one of the following statements is FALSE? a. Tariffs are taxes charged on imports or exports. b. Import substitution is the policy of encouraging domestic production in place of imports. c. Foreign trade zones are areas where foreign-owned manufacturers can operate free of many tariffs and regulations. d. Compared to other countries in the world, The United States has an unusually high ratio of trade to GDP. e. Over the last several decades international trade has grown.
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1. Calculating opportunity cost using graphs (4 points) William David 2 Cakes 4 Cakes Given the two PPC's for William and David, calculate the opportunity cost of each good (pies and cakes). Use the space below each answer blank to type or write out your math showing how you calculated their opportunity costs. (No work, no credit. Be sure to reduce your fractions and don't leave any improper fractions.) ANSWER for William's opportunity cost of pies: ANSWER for William's opportunity cost of cakes: ANSWER for David's opportunity cost of pies: ANSWER for David's opportunity cost of cakes: O Pies