Econ 2301 HW 2
Indicate all the items in the following list that are not capital goods and explain why. Item a: An auto assembly line Item b: A shopping mall Item c: A golf ball Item d: The Atlantic Ocean Item e: A truck owned by FedEx Item f: A librarian
A golf ball, the Atlantic Ocean, and a librarian are not capital good
_______ firms are involved in the production of the Dreamliner. _______ of the firms are identified in the figure in the popup. B. More than 400; Ten C. 300; Fifteen D. 300; Five
A. More than 400; Fifteen Your answer is correct.
Which of the following are capital goods?
An airplane, a garbage truck, and an ATM are capital goods because businesses use these to produce other goods and services in the future.
How is the personal distribution of income in India changing? If the number of millionaires in India is growing quickly, then the _______.
B. personal distribution of income is becoming more unequal
Boeing does not manufacture all the components of the Dreamliner at its own factory in the United States because _________.
C. Boeing wants to produce the Dream liner at the least possible cost. To do so Boeing buys from the firms that have the lowest costs for delivering the components
Choose the statement that is incorrect .A. The quality of labor depends on how skilled people are. B. The quantity of labor increases as the adult population increases. C. Labor is often referred to as infrastructure capital. Your answer is correct.D. Human capital is the knowledge and skill that people obtain from education, on-the-job training, and work experience. E. Labor is the work time and work effort that people devote to producing goods and services
C. Labor is often referred to as infrastructure capital.
In the African nation of Senegal, to enroll in school a child needs a birth certificate that costs $25. This price is several week's income for many families. Explain how this requirement is likely to affect the growth of human capital in Senegal. Because of this requirement we would expect to see _______.
C. slow growth of human capital in Senegal and particularly slow growth in the human capital of girls and women
If Boeing manufactured all the components of the Dreamliner at its own factories in the United States all of the following would occur except _______.
D. Boeing would be able to make more business decisions about the Dream liner
China's income gap widens The income gap has widened in China. In 2014, the pay of workers in the coastal regions increased by 9.7 percent while that of workers in the inland regions grew by 9 percent. Source: South China Morning Post, May 28, 2015 Explain how the distribution of personal income in China can be getting more unequal even though the poorest are getting richer. The personal distribution of income in China can be getting more unequal because _______.
D. The richest 20 percent of families are getting richer faster than the poorest 20 percent of families, so the richest 20 percent of families have an increasing percentage of China's total income
The production of the Dreamliner influences how goods and services are produced by _______.
D. developing new technologies for the design and construction of an airplane
The Dreamliner is a _______ good because it is _______. A. consumption; bought by airlines to increase productive resources B. consumption; used by individuals in the current period C. capital; produced by more than one firm D. capital; bought by airlines to increase productive resources
D. capital; bought by airlines to increase productive resources
Which of the following is a factor of production? A. A school teacher and the President of the United States because all people are factors of production B. A movie because it is produced using land, labor, capital, and entrepreneurship C. A garbage truck because it provides a service usually paid for by municipal taxes D. An interstate highway and an airplane because they are used by individuals and governments E. An ATM and a strawberry field because they are used to produce goods and services
E. An ATM and a strawberry field because they are used to produce goods and services
Examples of capital include all of the following except _______.
Google stock is financial capital.
Indicate all the items in the following list that are not factors of production and explain why. Item a: Vans used by a baker to deliver bread Item b: 1,000 shares of Amazon.com stock Item c: Undiscovered oil in the Arctic Ocean Item d: A bulldozer Item e: A soda Item f: The Attorney General
Items b, c, and e because they are not productive resources used to produce goods and services long dashland, labor, capital, or entrepreneurship
The pace at which new businesses are created in the U.S. economy and the percentage of U.S. jobs in young firms have fallen. Ryan Decker and others, "The Role of Entrepreneurship in U.S. Job Creation and Economic Dynamism." Journal of Economic Perspectives, 2014 Explain how these facts might influence what, how, and for whom goods and services are produced in the United States. The facts in the news clip have implications for ______ goods and services are produced
The facts in the news clip are: 1) The rate of creation of new firms as slowed. 2) The percentage of U.S. jobs in young firms has fallen. The implications of these facts for what, how, and for whom goods and services are produced are: What: New and young businesses produce new goods and services such as apps and e-commerce services. The pace of growth of production of these items has slowed. How: New and young businesses use new, capital-intensive, technologies. The pace of growth of the use of these technologies has slowed. For whom: Fewer new firms implies fewer new entrepreneurs and a slower growth of profit, the income of entrepreneurship.
Capital consists of _______.
Tools, instruments, machines, buildings, and other items that have been produced in the past and that businesses now use to produce goods and services.
You buy a coffee at Starbucks. A money flow from households through goods markets to firms The government buys some Dell computers. A real flow from firms through goods markets to government A student works at Kinko. A real flow from households through factor markets to firms Donald Trump rents a building to Marriot hotels. A real flow from households through factor markets to firms You pay your income tax. A money flow from households to government
You buy a coffee at Starbucks. A money flow from households through goods markets to firms The government buys some Dell computers. A real flow from firms through goods markets to government A student works at Kinko. A real flow from households through factor markets to firms Donald Trump rents a building to Marriot hotels. A real flow from households through factor markets to firms You pay your income tax. A money flow from households to government
Some tradeoffs that Boeing faces in making the Dreamliner include all of the following except _______. A. weight of components versus their strength B. being a private company versus being a public company Your answer is correct.C. producing the Dreamliner versus producing a different aircraft D. quicker production versus cost of production
Your answer is correct.C. producing the Dreamliner versus producing a different aircraft
With more job training and more scholarships to poor American students, which special factor of production is likely to grow faster than in the past? A. capital B. financial capital C. human capital physical capital E. intellectual capital
Your answer is correct.D.
Boeing's decision in making the Dreamliner is in the _______. A. self-interest and not in the social interest because Boeing's makes all of its production decisions by considering only their costs B. social interest because Boeing chooses to use other firms to produce components C. social interest if the Dreamliner, produced at the lowest possible cost lowers the cost of trips and makes flying safer and more enjoyable Your answer is correct.D. social interest because Boeing is a publicly traded company
Your answer is correct.D. social interest because Boeing is a publicly traded company
Read Eye on the Dreamliner. Then answer the following questions. The production of the Dreamliner influences what goods and services produced by _______.
creating a demand for components manufactured around the world
Telecommunication services are being produced ______.
for consumers in developing economies such as Africa and also for consumers in advanced economies such as the United States
Telecommunication services in the global economy are ______.
increasingly produced using wireless means
The production of the Dreamliner influences for whom goods and services are produced by _______
paying rent, wages, interest, and profit to the factors of production that make and assemble Dreamliner components
