Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 2, Problem 12WNG
To determine
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Chapter 2 Solutions
Macroeconomics
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1QPCh. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QP
Ch. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 13QPCh. 2 - Prob. 1WNGCh. 2 - Prob. 2WNGCh. 2 - Prob. 3WNGCh. 2 - Prob. 4WNGCh. 2 - Prob. 5WNGCh. 2 - Prob. 6WNGCh. 2 - Prob. 7WNGCh. 2 - Prob. 8WNGCh. 2 - Prob. 9WNGCh. 2 - Prob. 10WNGCh. 2 - Prob. 11WNGCh. 2 - Prob. 12WNG
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- Draw a production possibilities curve for food and clothing. If you are operating on the curve, what is the opportunity cost of producing more clothing? If you are on the curve, is it possible to increase production of one good without decreasing the production of the other?arrow_forwardWhat is a ‘final good’? Select one: a. A good not used as an input in the production process b. A natural resource used to produce a good c. A good purchased as an input in the production process d. A good used in the production of another goodarrow_forwardAn economy can either produce 300 airplanes and 25000 cars OR 200 airplanes and 40000 cars. What is the opportunity cost of producing 1 airplane? a)150 cars b)200 cars c)15000 cars d)100 carsarrow_forward
- A production possibilities curve: a. Eliminates the need to make choices regarding the use of resouces b. Can be drawn for an economy but not for an individual c. Shows the different combinations of goods that can be produced d. Shows the different combinations of inputs that can be used to produce a goodarrow_forwardAshwin likes to spend her spare time in summer in one of two ways: (i) watching cricket (x) at Sydney Cricket Ground or (ii) watching movies (y) at Ritz cinema. In choosing how to entertain herself, she considers both constraints---money and time. Part I Ashwin has 48 hours of spare time in a month. A cricket game runs for 8 hours, while each visit to the movies takes up 4 hours. Each month, Ashwin also has $324 to spend on entertainment. A ticket for a cricket game costs $45. A visit to the movie costs $36. Write down Ashwin's budget constraint and time constraint. (a) (b) Draw Ashwin's budget constraint and time constraint in a clearly labelled diagram. Label all axis intercepts in the two axes (x and y) and the point of intersection of the two budget lines. Shade the set of bundles that Ashwin can afford (those satisfying both his time and money constraints) with vertical lines. Part II Sam---a friend of Ashwin---has the same amount of spare time (48 hours per month) and same amount…arrow_forwarda) 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).arrow_forward
- If a family spends its entire budget in a given time frame, the family can afford either 95 cans of vegetables or 40 frozen dinners. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of a can of vegetables in the time frame?arrow_forwardappy nomics entor Okay, so if I want one more bottle of water, what does this cost me in terms of fish? The opportunity cost of one more bottle of water is 1/2 fish. Happy Economics Mentor That is correct! If I think about the different combinations of fish and water I can produce in a day as a Rhonda Submit Rhonda production possibilities frontier (PPF), which of these PPFS has the correct shape? Choose an image response on the right Rhonda Fish Straight Line PPF Fish Concave PPFarrow_forwardPlease answer fast please arjent and solved answerarrow_forward
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