13. Refer to the diagram below, which illustrates the PPFs for two producers of two goods that are free to trade with one another. y PPF2 A PPF₁ B D C Which of the following production choices are EFFICIENT? Both producers are operating at point B. Producer 2 is operating at point B.
Q: Suppose the economy's short-run aggregate supply (AS) curve is given by the following equation:…
A: Aggregate Supply:Supply is the total number of goods and services produced by a producer is called…
Q: Price level a aa a LRAS AS AD₁ YcY₁ Yo AS AD₂ Real GDP per year (Exhibit: Monetary Policy and…
A: Monetary policy is a tool used by central banks to control the overall money supply in the economy.…
Q: Weekly earnings and work effort are respectively. OY1 and OL2 OY2 and NL2 OY1 and NL2 OY2 and ON
A: under the work leisure choice the consumer has to make a choice for how many the consumer has to…
Q: The production possibility curve shows all the following except a. Economic growth O b. The law of…
A: PPF: Graphical representation of the combination of two goods that can be produced in the economy in…
Q: 2. Table 1 below shows the number of baskets produced by a Bentle Weavers in the short run using…
A: Average Product (AP) :AP= Total Product / Units of inputMarginal Product (MP) :MP= Change in Total…
Q: Using the Solow growth model suppose that there is a hurricane coming toward a city. Because it is…
A: Solow model in economics is the long-run growth model that studies the changes in economic growth of…
Q: To lower output, the federal government engages in _____ fiscal policy, which _____ government…
A: This can be defined as a concept that shows the continuous progress in any nation it does not happen…
Q: run and long-run effects of a shift in demand Suppose that the jackfruit industry is initially…
A: Demand curve represents quantity demanded corresponding to different price level.Demand curve is…
Q: The figure to the right shows the production possibility frontiers (PPF) for Billary (B) and Hill…
A: The production possibility curve shows the combination of two goods that are produced with efficient…
Q: Secrecy is power...unless...Discuss, for the case of the Ku Klux Klan, the impact of secrecy as…
A: Action: Examine how the KKK's secretive nature contributed to a mystique, creating fear and…
Q: Fish in the deep sea are being fished to the point of extinction, yet fish in privately owned fish…
A: The objective of the question is to understand the economic reasoning behind the difference in…
Q: What area is the tax revenue to the government? What is the amount of the tax revenue? What area is…
A: Tax creates a rift between the price paid by the buyer and the price received by the seller. As the…
Q: Player 1 B L 8 9 Player 2 8 0 R 0 1 9 1 Collusion 5. Consider the following game and suppose that it…
A: Collusion as the name suggests is the situation where two or more players play to benefit…
Q: A British government perpetuity pays £4 a year forever and is selling for £48. What is the interest…
A: An infinite stream of income is carried by a fixed income security known as a perpetuity. A…
Q: Peter and Paul own the two main firms in the peanut butter cup market and have decided to cooperate…
A: The Prisoner's Dilemma is a key idea in game theory that demonstrates why two individuals probably…
Q: The demand for cigarettes is given by P = 500 -0.2Q. Cigarettes are manufactured at a constant…
A: Externality refers to the external costs and benefits that are imposed on the third party without…
Q: A union of this sort, which raises wages by reducing the labor supply, is called: An industrial (or…
A: Unionization involves the formation of a labor group to take maximum advantage of collective…
Q: QUESTION 20 Study the table below which represents the cost and price schedules facing a perfectly…
A: Business economics is the study of how organizations make decisions and allocate resources in the…
Q: One study presented in the text calculated the cost per life-year saved for various medical…
A: Thе concеpt of diminishing marginal product of mеdical carе rеfеrs to a situation whеrе thе…
Q: Py A consumer's Marshallian demand for y is given by gy (Pa, Py, I) = -3. The price of good y is py…
A: The elasticity of demand:The elasticity of demand is calculated as the proportional change in…
Q: In the US, private health insurance is usually purchased by groups rather than individuals. For…
A: In the United States, private health insurance is primarily purchased through group plans rather…
Q: (Figure: The Market for Designer Boots in Monopolistic Competition IV) Use Figure: The Market for…
A: In most market situation, the profit maximizing situation occurs where the marginal revenue…
Q: Econoline Company produces only two goods and they operate with limited resources. The production…
A: A graphical depiction known as the Production Possibility Frontier illustrates the highest possible…
Q: Interest rate (percent) 8 6 4 2. 0 MS1 MS2 200 400 600 800 Quantity of money (billions of dollars)…
A: Money is a medium of exchange that is broadly acknowledged in transactions including goods,…
Q: Suppose that the government of Smallville spends $2 trillion in 2020 and receives tax revenues of…
A: The government spends a specific amount for which they expect a suitable return. However, there…
Q: Cost curves for Outdoor Equipment Cent per unit Number of sleeping bags Figure 8.6 According to…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: a) Explain how real interest rate affects net exports b) A friend from the U.S. visited Ghana and…
A: a) The real interest rate affects net exports in an economy through its influence on the exchange…
Q: Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is…
A: The economic situation does not always demand the government intervene to control market operations.…
Q: 13) Suppose that the government intends to impose tariff on bananas after successful lobbying…
A: The world price of bananas is represented by Pw. The government imposed the tariff on bananas that…
Q: Suppose that x is a normal good and y is an inferior good. The Marshallian demand functions for…
A: The Marshallian demand function, named after the economist Alfred Marshall, is a basic idea in…
Q: Suppose the graph represent demand and marginal cost for a firm that is able to engage in perfect…
A: In a perfectly price discriminating market all the sellers have the knowledge regarding the consumer…
Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…
A: Present value is the current worth of a sum of money that will be received or paid in the future.…
Q: The table below shows recent worldwide market shares of producers of inkjet printers: Firm Brother…
A: Herfindahl- Hirschman index is the square of the market shares and adding them together. HHI is…
Q: Econoline Company produces only two goods and they operate with limited resources. The production…
A: A graphical depiction known as the Production Possibility Frontier illustrates the highest possible…
Q: a. $7 b. $3 c. Between $5 and $7 PRICE etwee 7 5 3 60 er to Figure 6-11. Suppose a tax of $2 per…
A: Tax Incidence:The effect of different taxes on the economic welfare distribution is called the tax…
Q: Suppose that after an excise tax was imposed on sofas, the price buyers paid for sofas increased by…
A: Taxation is an essential component of the modern economy, serving as a major source of money for…
Q: Suppose that two firms in an industry that has a Herfindahl index of 1,000 announce a merger. The…
A: The Herfindahl index is a measure of market concentration. A higher Herfindahl index indicates…
Q: Consider an economy that produces maize and bicycles. The following lable shows produ and price…
A: Gross domestic product (GDP) measures the market value of final goods and services produced within…
Q: Codes of honor, conduct and ethics have their origins in O a) Religion b) Ancient precepts of…
A: The question asks about the origins of codes of honor, conduct, and ethics.
Q: 1. Describe a situation in life that could be represented as a game with 3 or more players, each of…
A: In game theory, a game is a mathematical representation of a situation where two or more…
Q: Consider the following demand and supply equations for Chocolates: Qd=140-P and Qs= -120+P. The…
A: A demand curve shows the relationship between the price of a good and the services and the demand…
Q: 1 7. Suppose that for some reason we were interested in studying solutions to the following…
A: Budget line:It is a graphical representation of the combination of two sets. That is earning od…
Q: Recently, a poly-crises environment has become more worrisome for policymakers globally. This…
A: This can be defined as a concept that shows the continuous progress in any nation it does not happen…
Q: (Figure: The Business Cycle) Point C on this graph shows: OA.a peak. B. an expansion. C. a trough.…
A: A business cycle represents the periods of ups and downs that an economy undergoes over time. There…
Q: 1. For each of the following questions, draw the Money Demand curve (MD) and Money Supply curve (…
A: A demand curve is a graph depicting the inverse demand function, a relationship between the price of…
Q: National Income 100 200 300 400 500 600 O 104 324 374 This is a table for Keynesian cross diagram.…
A: Consumption refers to the use, utilization, or expenditure of goods and services by individuals,…
Q: The government is involved in providing many goods and services. For each of the goods or services…
A: This can be described as the use, utilization, or expenditure of resources, commodities or services…
Q: There is a shrimp species whose Marginal Growth Function is MG(S) = 1 - 2S/K. Where S is the stock…
A: The golden rule of growth states that the optimal stock level is the one that maximizes the…
Q: Explain briefly what you mean by the following terms: a. Variable cost b. Market Power
A: The objective of the question is to provide a brief explanation of two key economic terms: Variable…
Q: Fill in the blanks: There is ____________ in an economy with positive externality. This problem can…
A: The objective of the question is to understand the concept of positive externality in economics and…
Step by step
Solved in 4 steps
- Sue Tom Good A 10 4 Select one: Good B 15 5 As shown in the table above, Sue and Tom each can produce two different types of goods. For Sue, if she only produces Good A, then she can produce 10 units of Good A per day. If she only produces Good B, then she can produce 15 units of Good B per day. For Tom, if he only produces Good A, then she can produce 4 units of Good A per day. If she only produces Good B, then she can produce 5 units of Good B per day. Which of the following statement is correct about comparative advantage? O a. Tom has a comparative advantage over Sue in the production of Good A. Sue has a comparative advantage over Tom in the production of Good B O b. Tom has a comparative advantage over Sue in both tasks O c. Sue has a comparative advantage over Tom in both tasks O d. Sue has a comparative advantage over Tom in the production of Good A. Tom has a comparative advantage over Sue in the production of Good B3. Efficiency in the production possibilities model Suppose the fictional country of Olympia produces only two goods: millet and microprocessors. The following graph plots Olympia's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. MICROPROCESSORS (Millions) 100 80 40 20 O 0 PPF +T 20 +< A 40 + E B * D 60 MILLET (Millions of bushels) хс 80 100 (?)The production possibilities curve below shows the hypothetical relationship between the production of guns (national defense) and butter (social goods) in an economy. Combination A B C D E Guns O 20 60 80 100 Butter 8 6 4 2 0 Your response should be a number ONLY. 1. What is the marginal opportunity cost of moving from 2 to 4 units of butter? Guns. 2. What is the total opportunity cost of producing the four (4) unit of butter? Guns
- 2. Comparative and absolute advantage Gilberto and Juanita are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest. for the drop down box selections. The option for first is Juanita or Gilberto, for the second its also Juanita or Gilberto, for third its lower or higher, for fourth its Juanita or Gilberto, and for 5th its also Juanita or Gilberto1. Assume you are on an iceland, where you can produce different combinations of coconuts and fish that can be harvested in a given week. The table below shows these combinations. Notice that you can produce either all crabs, all pineapples, or a mix of the two. Coconuts Fish 25 3 15 4 12 5 a) Draw PPF using the information from this table; b) Calculate opportunity cost of coconuts if you decide to increase their harvest from 3 to 5; c) Calculate the slope of the PPF if you increase their harvest from 3 to 5; d) Will you harvest 5 coconuts and 12 fish on any day of the week? Why? e) Will you harvest 5 coconuts and 4 fish on any day of the week? Why?Table 2.1.1 The following table gives points on the production possibilities frontier for goods X and Y. Point Production of X Production of Y A B C) 4 units of Y. OD) 8 units of Y. E) 4 units of X. C D E 0 4 8 12 16 40 36 28 16 0 Refer to Table 2.1.1. The opportunity cost of increasing the production of X from 8 to 12 units is OA) 12 units of Y. B) 16 units of Y.
- 5. Figure 1 shows the PPF between Caps (C) and scarves (S). Assume that Caps sell for $8 and scarves sell for $5. The maximum revenue that you can earn is you will produce and caps. Show your work on the figure and scarves Scarves 90 80 70 60 50 40 30 20 10 O Figure 1 5 10 15 20 25 30 35 40 45 50 55 60 Caps6. The interaction of individual choices Immediately after an ice storm brought down power lines throughout the region, hardware stores were sold out of batteries and flashlights. However, within a couple of days, special deliveries brought in extra batteries and flashlights, and everyone who wanted to buy a flashlight or batteries was able to do so. Which of the following principles of economic interaction best describes this scenario? O Markets allocate goods effectively. O All costs are opportunity costs. O When markets do not achieve efficiency, government intervention can improve overall welfare. There are gains from trade.[MUST SHOW WORKI You and your friend Tom are stranded on a deserted island and need to survive by collecting firewood and fishing for food. You can collect 8 logs per hour or 200 calories of fish per hour. Your friend Tom can collect 3 logs per hour or 500 calories of fish per hour. Who has an absolute advantage in collecting firewood? Select one: O A. Both You and Tom. O B. Neither You nor Tom. O C. You. O D. Tom. O E. Impossible to calculate without more information.
- |4. Help Samanthaville prioritize Using the chart below, graph a production possibilities frontier plotting Samanthaville’s points of efficiency. Place studying Economics Textbooks on the x-axis and piggy banks on the y-axis. Economics Textbooks Piggy Banks Hours 60 85 95 50 75 2 3 90 4 100 100 a) What are the 5 possible points of efficiency for Samanthaville? Create a production possibilities graphing these 5 points of efficiency. b) Evaluate the following statement: "Samanthaville should spend 2 hours making Economics Textbooks and 2 hours making Piggy Banks." Is this a positive or normative statement? Explain. c) What is Samanthaville's marginal opportunity cost making the 4th Econ Textbook? d) What is Samanthaville's marginal opportunity cost of making the 2nd Piggy BankSteel (millions of tons) 8 30 20- 10 0 Country A Production possibilition curve 10 20 30 40 Chemicals (millions of tons) From the diagrams, it can be seen that 50 Steel (millions of tons) 8 20 10 0 Country B Production possibilities curve 10 20 30 40 Chemicals (millions of tons) O the slopes of the two curves indicate both countries will specialize in chemicals. O country B has an absolute advantage in both commodities. O it is more costly in terms of resources to produce steel in country A. O country B has a comparative advantage in chemicals. O country A has a comparative advantage in both commodities. 504. The following question refers to the diagram below, which illustrates the PPF for a producer of two goods, x and y. PPF Which of the following statements is TRUE? 1. The marginal cost of producing x is higher at high levels of x than it is at low levels of II. The marginal cost of producing y is higher at high levels of y than it is at low levels of y. III. The marginal cost of producing both x and y is constant in the level of production. a) I only. b) Il only. c) Ill only. d) I and II only.