7 65 6 55. 3 45 4 35 3 25 1 cup of co 2 15- 1 05- 1 Panel (a) X M 4 5 6 donats 65- 33. S 64 45 4 35 3 25- 2 15 Icaps of coffee 1 05 Panel (b) 3456 denats Refer to Figure 2-9, Panel (a) and Panel (b). A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by a unemployment. Ob. an improvement in donut production technology. Ocan improvement in coffee production technology. d. an improvement in both - onut and coffee production technology.

7 65 6 55. 3 45 4 35 3 25 1 cup of co 2 15- 1 05- 1 Panel (a) X M 4 5 6 donats 65- 33. S 64 45 4 35 3 25- 2 15 Icaps of coffee 1 05 Panel (b) 3456 denats Refer to Figure 2-9, Panel (a) and Panel (b). A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by a unemployment. Ob. an improvement in donut production technology. Ocan improvement in coffee production technology. d. an improvement in both - onut and coffee production technology.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 3-5 Hosne's Production Possibilities Frontier 10 9- 8 9 s wallets 1 2 3 4 5 6 7 8 4 purses and 8 wallets. O 7 purses and 7 wallets. O 10 purses and 6 wallets. 9 10 purses O 14 purses and 14 wallets. Merve's Production Possibilities Frontier 10 9 8- 3+ 6 5- 4+ Refer to Figure 3-5. If Hosne and Merve each divides her time equally between making purses and making wallets, then total production is 1 wallets 1 2 3 4 5 6 7 8 9 10 purses
Price of Brussel Sprouts per lb vs. Number of Tons for Stink E. Smell Price of Brusselsprouts per b $10.00 Price of Brusselsprouts per Ib 58.00 56.00 $4.00 52.00 SC 00 $2.50 32.00 $1.50 30.50 2 $0.00 3 2 4 Price of Brusselsprouts per lb vs. Number of Tons Cheap O Grower 5 4 16 5 7 Number of Tons 6 7 18 Number Tons 9 C 10 9 10 ķ
QUESTION 10 product Y product Y 28 # 20 16 12 8 4 0 28 20 16 12 8 4 0 0 Fig. A Production Possibilities Frontier PPFO PPFO 4 8 PPFn 8 12 Fig. C Production Possibilities Frontier PPFn 16 12 Point E 20 16 24 product X Point E 20 product Y product Y 4 20 16 12 8 4 0 28 20 16 12 8 4 0 O 0 Fig. B Production Possibilities Frontier PPFO 4 PPFO PPFn 8 12 Fig. D Production Possibilities Frontier PPFn Point E 12 16 24 product X 16 20 Point E 20 24 product X 24 product X 10. Which of the above figures represents economic growth caused by an increase of resources specific to the production of product Y? (a) FIGA O (b) FIG B (c) FIG C O (d) FIG D
(Figure: The Socially Optimal Quantity of Emissions from Coal Production) Use Figure The Socialy Optimal Quarety of Emissions from Coal Production in the figure, firms are the only beneficiaries of polution, and costs are borne solely by others in the society. Without government intervention Marginal social cost, marginal social benefit MSC of pollution MSB of pollution Quantity of pollution emissions (tons) O The outcome cannot be determined without more information Orms will continue to polute until the marginal benefit to them is $200 O firms will continue to pollute until the marginal benate to them is zero. O the quantity of pollution will be optimal.
5. Property rights and market failures Loggers are much likely to supply wood to the market if property rights are not enforced. In the presence of market failures, public policy can improve economic efficiency. Classify the source of market failure in each case listed. Market Market Failure Power Externality A manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town downstream. A single grocery store is the only source of food in a small town, giving the store the ability to influence the price of food.
(A) OC. C OD. D oo 53 (B) (C) 7 Which one of the above figures represents an economy's production possibilities frontier? OA. B O B. A o (D) Q 2
Antonio and Caroline are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Alfalfa Barley (Bushels per acre) (Bushels per acre) Antonio 40 8 Caroline 28 7 ___________has an absolute advantage in the production of alfalfa, and __________ has an absolute advantage in the production of barley. Antonio's opportunity cost of producing 1 bushel of barley is ____ bushels of alfalfa, whereas Caroline's opportunity cost of producing 1 bushel of barley is______ bushels of alfalfa. Because Antonio has a ______ opportunity cost of producing barley than Caroline,________ has a comparative advantage in the production of barley and_______ has a comparative advantage in the production of alfalfa.
The sccompanying hypothetical production possibilities tables are for New Zesiand and Spain. Esch country can produce spples and plums New Zealand's Production Possibllities Table (Millions of Bushels) Production Alternatives Product Apples 28 60 Plus 15 18 Spain's Production PossIblilties Table (Millions of Bushels) Production Alternatives Product Apples Plums 20 48 20 a. Plotthe production possibilities dsta for esch of the two countries separatejy. Show the tracling possibilities lines for each nation if the sctusl terms of trade sre 1 plum for 2 spples. Instructions: (I Use the tools provided, 'PPC NZ' snd 'PPC SP iplat 4 polnts esch) to drsw the PPC curves. (2) Use the tool provided, ToT, in esch diegram (elot 4 points esch) to draw the trading possibilities lines for esch nation. To earn full credit, you must correctly plot al points for esch Iine. New Zealand Spain Tools 140 Tools 120 TOT PPC s TOT 100 80 40 40 20 20 5 10 15 20 25 30 35 40 10 20 30 40 50 60 70 80 Plums (millions…
4 An increase in per capita production and incomes can be expected to have a large effect in reducing emissions that lead to global warming. O false O true
8. What is the welfare loss to producers (decrease in producer's surplus) resulting from trade in country 2? (a) $3 (b) $27 (c) $31.5 (d) $40.5 (e) $45
QUESTION 9 product Y product Y 28 # 20 16 12 00 8 4 0 28 24 20 16 12 8 4 0 0 Fig. A Production Possibilities Frontier 4 PPFO PPFO 4 8 PPFn 8 12 Fig. C Production Possibilities Frontier PPFn 16 12 Point E 20 24 product X 16 Point E 20 product Y 2 product Y 28 20 16 12 8 4 0 20 16 12 8 4 0 0 Fig. B Production Possibilities Frontier 0 PPFO 4 8 4 PPFo PPFn 12 8 24 product X 09. In figure A the shift of the Production Possibilities Frontier outward would be best explained by: O (a) a movement towards efficient production. O (b) an increase in demand for both products. (c) an increase in specialization of resources. O (d) an increase in available resources specific to the production of good X. (e) an increase in available resources specific to the production of good Y. Fig. D Production Possibilities Frontier PPF 16 Point E 12 20 24 product X 16 Point E 20 24 product X
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