(a)
Relationship between sale of hot dogs and sale of hot dog buns.
(a)
Explanation of Solution
The relationship between hot dogs and hot dog buns is that both are complementary goods. The goods that are demanded together are called compliment goods, and an increase in the
Complement goods: Complementary goods are those goods that are demanded together.
(b)
Relationship between price of winter coats and sale of winter coats.
(b)
Explanation of Solution
There is a negative relationship between price of winter coats and sale of winter coats because when the price of coat increases, people would demand less quantity. Thus, increase in price reduces the quantity of coat sale and vice versa.
Negative relationship: A negative relationship refers to the situation where two variables move in the opposite directions.
(c)
Relationship between price of personal computer and production of personal computer.
(c)
Explanation of Solution
Quantity of production depends upon the price of that good. Thus, there is appositive relationship between price of computer and quantity of computer produced. Increase in price of computer leads to increase in the production of computer or quantity supply of computer in the market.
Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.
(d)
Relationship between sale of toothbrushes and sale of cat food.
(d)
Explanation of Solution
There is no relationship between sale of toothbrush and sale of cat food because the sale of toothbrush does not make any effect on the sale of cat food.
(e)
Relationship between the number of children in a family and the number of toys in a family.
(e)
Explanation of Solution
The number of children in a family is directly related to the number of toys in a family because increasing number of children in a family results in an increase in the number of toys in the family.
Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.
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Chapter A Solutions
Mindtap Economics, 1 Term (6 Months) Printed Access Card For Arnold's Macroeconomics, 13th
- Production efficiency is most concerned with Choice of inputs in production process Quantity of outputs resulting from the production process The technological process of production All of the abovearrow_forwardChoose all of the following that are assumed to be constant while constructing the production possibilities curve Technology Precise mix of inputs Institutional arrangements like judicial protection of business contracts Outputsarrow_forwardA point that lies OUTSIDE of the PPC can be achieved if A major technological innovation increases production efficiency A sudden influx of resources e.g., massive immigration of trained nurses Economic reform resulting in greater protection of intellectual property rights All of the above Only options 1 and 2arrow_forward
- The marginal benefit from each successive unit of medical care consumed declines BECAUSE each successive unit is more expensive to produce True Falsearrow_forwardIn the Human Capital approach, estimated monetary worth of life is MOST SENSITIVE to which key indicator Discount rate Social security payroll taxes Labour market earnings Workplace injury compensationarrow_forwardOver the last few decades out-of-pocket costs have formed a DECLINING proportion of total consumer expenditure on medical care True Falsearrow_forward
- Cost benefit analyses often assumes the following about consumers EXCEPT Consumers have clear preferences among choices they are exposed to Consumers purposely choose actions that result in higher satisfaction Consumers factor in uncertainty of outcomes in their decision-making regarding net benefits and costs Consumers lack information about attributes of market goods that are necessary for ranking their choice setarrow_forwardThe TRUE relationship between MARGINAL utility and an individual’s stock of health can be best described as a scatter plot True Falsearrow_forwardMany health economists believe that the United States spends its MARGINAL dollars on healthcare in a highly wasteful manner. This view is also known as “flat of the curve” medicine. True Falsearrow_forward
- Increasing provision of out-of-pocket cost calculators by major insurers are attempts to REDUCE price transparency for consumers True Falsearrow_forwardA price hike for medical goods/services that have an inelastic (i.e., <1) own-price elasticity of demand will tend to yield lower revenues True Falsearrow_forwardRisk Loving people are willing to pay insurance premiums that exceed their expected losses True Falsearrow_forward
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
