5. Chapter 1 entitled "Economics: The Study of Opportunity Cost" makes the pointthat wea. Can produce all we want of everything we want if we just work harderb. Face tradeoffs because we have limited resourcesc. Can avoid tradeoffs if we simply make the right decisionswwwd. Both B and C

The study of economics focuses on how individuals make decisions under conditions of scarcity.…

Answered: 5. Chapter 1 entitled "Economics: The…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 3PA

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Below is a table of production possibilities for a company that produces soft drink bottles and juice bottles (in thousands of units per week): Production alternatives production type A B C D E F Set of 8 soft drink bottles 0 4 10 15 19 22 12 juice box 58 56 48 32 16 0 Plot this data on a graph. What specific assumptions are represented by this production possibilities curve? If a firm is at point C, what is the opportunity cost of an additional set of soft drinks? From an extra juice box? If the company characterized in this table produced 7 sets of 8 bottles of soda and 40 cases of 12 juices, what could be concluded about the use of available resources? Is production currently possible at a point outside the production possibilities curve? Explain your answer.
Production Possibilities Curve for Time Spent Working After School & Time Spent Studying for Economiks Claes S120 Hours spent studying In the scenario depicted by the graph above, suppose the student decided to study one more hour to try to get a B instead of a C on their economic exam. What is the opportunity cost of this decision? O A The student would give up two hours of work in order to study one more hour for their economics exam. R. The student would up $20 on their paycheck after giving up an hour of work C The student would give up $60 on their paycheck after giving up an hour of work. O D The student would give up one hour of study time to attempt to eam a B
Based on the figure below, answer the following questions: A В 50 40 D 30 20 10 F 10 20 30 40 50 Food Production What this figure represents. Explain. а. b. How does the above curve illustrate the tradeoff we must make to increase food production? Clothing Production
5. Opportunity cost and production possibilities Sam is a talented artist who sells hand-crafted goods on his website. Sam currently crafts and sells both crochet hats and pillows. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. Choice A B C D E PILLOWS 30 25 20 On the following graph, use the blue points (circle symbol) to plot Sam's initial production possibilities frontier (PPF). 15 10 5 0 Hours Crafting Produced (Crochet hats) (Pillows) (Crochet hats) (Pillows) 0 0 9 15 17 18 0 8 6 4 2 0 1 2 3 2 4 6 8 4 5 CROCHET HATS 4 3 2 6 1 0 7 8 Initial PPF A New PPF (?)
Both Geppetto and Lewis are toy store owners. They decide that they would like to trade puzzles and puppets in order to better stock their toy store shelves. The table below compares their production possibilities schedules. Production Possibilities Schedules Geppetto Lewis Puzzles Puppets 90 E 0 Puzzles 20 Puppets 75 TH 10 16 8 60 15 12 16 45 20 8 24 30 EHT 25 30 32 40 Instructions: Enter your answers as a whole number. a. Geppetto and Lewis agree to trade at a rate of 3 puzzles for each puppet. With those terms of trade, who is most likely to be the supplier of puzzles? Who is most likely to be the supplier of puppets? Puzzles: (Click to select) Puppets: (Click to select) b. The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. The terms of trade are still 3 puzzles for each puppet. How many puzzles and puppets will each one have after they complete their trade? Lewis: puzzles and [ puppets Geppetto: puzzles and puppets
Which one of the following concepts is illustrated by a production possibilities frontier? Select one: A. monetary exchange B. consumption C. profit D. investment O E. the tradeoff between producing one good versus another
10. What is an opportunity cost? Give an example from class or make up your own. Definition: Example:
QUESTION 19 Mohamed says that "gas prices are rising because there aren't enough oil refineries." Ahmed argues that "gas prices are rising because of the growing demand for gasoline from China and India." We can conclude that O A. Mohamed's statement is positive, but O B. Ahmed's statement is positive, but Ahmed's is normative. OC.Both statements are positive. D. Both Mohamed's is normative. statements are normative
Complete the following logical statement: "Because of , individuals and societies must make choices, and they must therefore consider the opportunity cost of every action."Maria and Kevin need to decide which one of them will take time off from work to complete the rather urgent task of shearing their llamas. Maria is pretty good with a pair of shears; she can shear the llamas in 1 hour. Kevin is somewhat slow; it takes him 5 hours to shear the llamas. Maria earns $190 per hour as a psychiatrist, while Kevin earns $15 per hour as a cobbler. Keeping in mind that either Maria or Kevin must take time off from work to shear the llamas, who has the lower opportunity cost of completing the task? Maria Kevin Maria and Kevin face identical opportunity costs
Problem 1: Production Possibilities Frontier Consider an economy that produces bicycles and autos. The production possibilities schedule shown below denotes the points on the production possibilities frontier. Points Amount Bicycles Amount Autos A 10 B 8 D E 5 8 12 14 15 a) Draw the production possibilities frontier in a clearly labelled graph. You can assume the points on the frontier are connected by straight lines. Please put bicycles on the x-axis and autos on the y-axis. b) Is point E more efficient in production than point C? Explain. c) Based on this production possibility frontier, can the economy currently produce 8 bicycles and 10 autos? If not, explain what would need to happen to allow the economy to produce 8 bicycles and 10 autos. d) True/False/Uncertain (and explain): Point B more efficient in allocation than point A. e) Does this production frontier have increasing opportunity costs? Explain, and also explain why it is common for production frontiers to have increasing…
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Problem 1. Suppose the economy consists of three individuals, Brian, Dave, and Reynold who can only produce lectures and exams. The following table summarizes their hourly productivity: Lectures Opp cost of 1 exam 7 2 Reynold 4 3 a) Calculate the opportunity cost of producing 1 exam for each individual. b) Draw the Production Possibility Curve for this economy with exams on the horizontal axis. Brian Dave Exams 4 5 exams c) What is the opportunity cost of producing one more exam when the economy is already producing 6 exams?

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5. Chapter 1 entitled "Economics: The Study of Opportunity Cost" makes the point that we a. Can produce all we want of everything we want if we just work harder b. Face tradeoffs because we have limited resources c. Can avoid tradeoffs if we simply make the right decisions d. Both B and C