Hats Umbrellas Minnie 40 (C) 5 umbrellas 10 A) 1/10 of an umbrella D Table 2-8 shows the output per week of two people, Minnie and Mickey. They can either devote their time to making hats or making umbrellas. B 1/5 of an umbrella 10 umbrellas Refer to Table 2-8. What is Mickey's opportunity cost of making a hat? Mickey 50 5

Hats Umbrellas Minnie 40 (C) 5 umbrellas 10 A) 1/10 of an umbrella D Table 2-8 shows the output per week of two people, Minnie and Mickey. They can either devote their time to making hats or making umbrellas. B 1/5 of an umbrella 10 umbrellas Refer to Table 2-8. What is Mickey's opportunity cost of making a hat? Mickey 50 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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8. The interaction of individual choices Because eels are highly endangered as a species, many governments enact laws prohibiting fishing along their migration route. Initially, eel fishers complain about this restriction on the locations they can fish, but after a while they notice that the number eels swimming outside regulated areas is much higher than it was before. With the laws in place, eel fishers end up catching a greater quantity of eels than they did prior to the enactment of the laws. Which of the following principles of economic interaction best describes this scenario? O Markets allocate goods effectively. O When markets do not achieve efficiency, government intervention can improve overall welfare. O There is a tradeoff between equality and efficiency. O Markets usually lead to efficiency.
05. What is the per-unit opportunity cost of product Y as production moves from point D to point B? a) 6/7 b) -6/7 c) 7/6 d) -7/6
10. Sunk costs and decision making Carlos has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Deborah, vwhom Carlos has wanted to date for a long time, asks him to a party. Carlos vwould prefer to go to the party with Deborah and forgo the opera, but he doesn't want to waste the $100 he spent on the opera ticket. From the perspective of an economist, if Carlos decides to go to the party with Deborah, what has he just done? Made a choice that was not optimal Incorrectly allowed a sunk cost to influence his decision O Correctly ignored a sunk cost
5. Opportunity cost and production possibilities Raphael is a skilled toy maker who is able to produce both trucks and kites. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Choice Hours Producing Produced (Trucks) (Kites) (Trucks) (Kites) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 19 E 0 8 0 20 On the following graph, use the blue points (circle symbol) to plot Raphael's initial production possibilities frontier (PPF). ( attached image) Suppose Raphael is currently using combination D, producing one truck per day. His opportunity cost of producing a second truck per day is( 1, 3, 16, 19 kites) per day. Now, suppose Raphael is currently using combination C, producing two trucks per day. His opportunity cost of producing a third truck per day is ( 1,6,10, or 16 kites) per day. From the previous analysis, you can determine that as…
6. Scarcity, opportunity cost, and marginal analysis Cho is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: In order to swim for an hour, Cho must take time away from work, where she earns $10 per hour. This is in addition to paying a $4 entrance fee for the pool. Which basic principle of individual choice do these statements best illustrate? A-The cost of something is what you give up to get it. B-People usually exploit opportunities to make themselves better off. C-Trade can make everyone better off. D-Markets are usually a good way to organize economic activity.
5. Draw a Production Possibilities Graph for Toyota using the following information: A B C E F Trucks 20 28 35 40 43 45 Cars 54 52 49 43 35 25 A. Which combination(s) on the graph are considered efficient?
30)
The following table lists the production possibilities in a single day for a donut shop. A B C D E Muffins 100 200 300 400 500 If donuts are sold for $2.00 each and muffins for $5.50 each, what is the maximum daily revenue for the shop? $ Donuts 1,700 1,500 1,200 800 300
Question 2 (1 polnt) The four people listed below are the only workers In an economy that works 10 hours per day and only produces two products. Use the table below and the questlons below to construct a PPF that displays the maximum efficlent production. Basketballs Per Hour Apple Ples Per Hour LeBron Anthony Rajon 3 Alex If the x-axis Is ples, and the y-axis is basketballs, then what is the Intercept of the PPF curve on the apple ples axis? O a (16, 0) O b (120, 0) (0, 120) (0, 12) 144 m 4239
15) Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000. What is her economic protit? A) $17,000 15) B) $25,000 C) 542.000 D) S47,000
planning to spend Saturday working at your part time job, but a friend asks you to go skiing. 3. You are What is the cost of going skiing in this case? a 1 Now suppose you have been planning to spend the whole day studying in the library. What is the b. cost of going skiing in this case? If he has absolutely nothing to do at home, what is the cost of going skiing? c.