True or False: The opportunity cost of an additional bag of bird seed, in terms of other consumption goods, decreases once you have bought more than 4bags of bird seed relative to if you had bought less than 4 bags.TrueFalseWhich of the following bundles of goods are affordable? Check all that apply.4 bags of bird seed and $20 spent on other consumption goods8 bags of bird seed and $20 spent on other consumption goods2 bags of bird seed and $40 spent on other consumption goods 12. Kinked budget constraintsSuppose that your family has just decided to adopt a parakeet named Daisy. You have a monthly budget of $50 that you can choose to spend on eitherbird seed or other consumption goods. Assume the price of a bag of bird seed is $5 for the first 4 bags, but then it drops to only $3 per bag for eachadditional bag. All other consumption goods will be treated as a composite good, so you can think of this as simply the cash left over to spend on otheritems after buying bird seed.On the following graph, use the blue points (circle symbol) to graph your family's budget constraint. Remember to plot from left to right. Line segmentswill automatically connect the points.OTHER CONSUMPTION (Amount per month)50454035302520151050024 6 8 10 12 1416BIRD SEED BAGS (Bags per month)18 20Budget Constraint

A budget constraint represents all the combinations of goods and services that a consumer may…

True or False: The opportunity cost of an additional bag of bird seed, in terms of other consumption goods, decreases once you have bought more than 4 bags of bird seed relative to if you had bought less than 4 bags. True False

True or False: The opportunity cost of an additional bag of bird seed, in terms of other consumption goods, decreases once you have bought more than 4 bags of bird seed relative to if you had bought less than 4 bags. True False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 6 Listen Efficient resource allocation should be accomplished when any production of a product shows the marginal benefit outweighs marginal cost of its output. 1) True 2) False Question 7 ) Listen If we say that two variables are inversely related, this means that an increase in one variable is associated with a decrease in the other. 1) True 2) False Question 8 ) Listen Consider the problem Amy faces of how to allocate her weekly allowance between books and videos. An increase in Amy's allowance will a) shift her budget line to the right b) rotate her budget line, allowing her to buy more videos but not more books c) rotate her budget line, allowing her to buy more books but not more videos O d) shift her budget line to the left
If society begins by producing 3 units of X and 4 units of Y and then alters production so that it is now producing 4 units of X and 4 units of Y, and we know that the quantity and quality of resources were unchanged and that technology did not change, then: A) 3 units of X and 4 units of Y are a combination best represented by a point outside the production possibilities curve. B) resources were being efficiently utilized at 3 units of X and 4 units of Y. C) society has moved along the production possibilities curve. D) resources were being fully utilized at 3 units of X and 4 units of Y. E) 3 units of X and 4 units of Y are a combination best represented by a point inside the production possibilities curve.
Solve the attachment.
As depicted in -- -, it is necessary to give up some of one good to gain more of the other good. a) the production possibilities frontier graph b) the concept of marginality c) the concept of utility d) allocative efficiency
Use the following table to answer the question below. Alexandra’s Production Possibilities Schedule Natalia’s Production Possibilities Schedule Number of Scarves Knitted per Day Number of Sweaters Knitted per Day Number of Scarves Knitted per Day Number of Sweaters Knitted per Day 0 4 0 4 3 3 2 3 6 2 4 2 9 1 6 1 12 0 8 0 Which of the following is an acceptable term of trade? Multiple Choice 2 sweaters for 7 scarves 4 sweaters for 10 scarves 8 sweaters for 15 scarves 6 sweaters for 10 scarves
Typed answer.
a) The s utility function is given as follows: U(z,y) = x+y The budget-constrained of 8 in spending money on the watching cricket match and movies as follows: 845x + 36y= 324 Now the utility function for finding the optimal bundle of preferences The bundle of a and y is under budget Now the Bundle of (x, y) is (2, 2) 45(2) 36(1) 45x + 36y= 324 36(2) 324 324 162 < 324 The MRS is one means to get an additional unit of zone unit of y will sacrifice and to get one additional unit of y, one unit of z will sacrifice. The budget line explain if (x, y) is (1, 1) 45(1) then = 324 $81 < 324 Now the Bundle of (x, y) is (3, 3) 90+72 Now the Bundle of (x, y) is (4,4) 45x+36y 324 45(3) 36(3) 324 135+108 324 243 < 324 = U(x, y) = x+y dU 45x + 36y= 324 45(4) 36(4) 324 180+144 324 324 324 = 1 dz MU2=1 du dy MUy=1 MRS MUT Pz MUY Py MRS=1 =1 MU MUy So the optimal bundle for S is 4 unit of z and 4 unit of y that is (4,4).