Chapter 1 homework

micro

Last week Wells Fargo Bank lowered its interest rate on business loans by one-half of 1 percentage point: (micro or macro)

b

Money is not considered a capital resource in economics because money is a. productive b. not productive

micro

A U.S. software firm laid off 15 workers last month and transferred the work to India: (micro or macro)

yes

A production possibilities table for DVDs and computers is shown below. (computers, DVDs) (0,80)(20,70)(40,55)(60,35)(80,0) Point G (20,40) Point F (60,70) graph. (XY 1-100 by 20) Does the economy above demonstrate the law of increasing opportunity cost? (Y/N)

d

A student will decide to attend class when a. there is an attendance policy. b. the marginal cost is low. c. the marginal benefit is positive. d. the marginal benefit of attending exceeds the marginal cost of attending.

d

Economic resources are the a. natural, human, and financial inputs used to produce goods and services. b. natural, technological, and manufactured inputs used to produce goods and services. c. technological, human, and manufactured inputs used to produce goods and services. d. natural, human, and manufactured inputs used to produce goods and services.

b

Economists classify resources as a. labor, land, financial capital, and entrepreneurs. b. labor, land, real capital, and entrepreneurs. c. labor, land, human capital, and entrepreneurs. d. labor, resources, real capital, and entrepreneurs.

a

Explain how (if at all) each of the following events affects the location of a country's production possibilities curve: A devastating earthquake destroys numerous production facilities: a. curve shifts inward b. curve shifts outward c. no change

b

Explain how (if at all) each of the following events affects the location of a country's production possibilities curve: A new technique improves the efficiency of extracting copper from ore: a. curve shifts inward b. curve shifts outward c. no change

c

Explain how (if at all) each of the following events affects the location of a country's production possibilities curve: The number of unemployed workers increases: a. curve shifts inward b. curve shifts outward c. no change

c

Suppose a city block was going to be used for a parking lot in both New York City and a small town. The opportunity cost would be a. lower in New York City because the alternative uses of the city block are more varied. b. greater in a small city because the alternative uses of the city block are more valuable. c. greater in New York City because the alternative uses of the city block are more valuable. d. lower in a small city because the alternative uses of the city block are more varied.

c

Suppose that you are given a $100 budget at work that can be spent only on two items: staplers and pens. If staplers cost $10 each and pens cost $2.50 each, then the opportunity cost of purchasing one stapler is: a. 5 pens. b. 10 pens. c. 4 pens. d. zero pens.

macro

U.S. output, adjusted for inflation, increased by 2.3 percent in 2017: (micro or macro)

c

What are the two major ways in which an economy can grow and push out its production possibilities curve? a. Better weather and nicer cars b. Higher taxes and lower spending c. Increases in resource supplies and advances in technology d. Decreases in scarcity and advances in auditing

b, e, f

What roles do entrepreneurs play in the economy? (all the apply) a. Make routine pricing decisions b. Innovate c. Purchase capital d. Create market demand e. Take risks f. Make decisions

a

Which of the following best describes the concept of "utility" and purposeful behavior? a. Satisfaction from consuming goods or services b. The effort required to generate income c. Consumers' desires for products that are useful d. The trade-off between spending and saving

a

Why is entrepreneurial ability distinct from labor even though both are considered a category of economic resource? a. because entrepreneurial ability is not directly engaged in production. b. because entrepreneurial ability is directly engaged in production.

G, F

A production possibilities table for DVDs and computers is shown below. (computers, DVDs) (0,80)(20,70)(40,55)(60,35)(80,0) Point G (20,40) Point F (60,70) graph. (XY 1-100 by 20) Point ___(A,B,C,D,F,G)____ is an example of an inefficient point, while point ___(A,B,C,D,F,G)____ is an example of an unattainable point.

micro

An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise: (micro or macro)

c

Because economic resources are used to produce goods and services, they are called... a. resources or products b. inputs or products c. factors of production of inputs d. factors of production or products

b

Explain how (if at all) each of the following events affects the location of a country's production possibilities curve: The quality of education increases: a. curve shifts inward b. curve shifts outward c. no change

c

In a market system, the allocation of scarce goods involves the consideration of a. the time required to pursue an economic activity. b. identifying the possibility of professional advancement. c. what must be sacrificed in using a resource for its next-best use. d. the dollar cost of any good or service.

a. 2, b. 2

Potatoes cost Janice $1.10 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30 per pound. a. How many pounds of potatoes will she purchase? b. How many pounds would she purchase if she only had $3.00 to spend?

underutilizing

Refer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): (automobile production, forklift production) (0,30)(2,27)(4,21)(6,12)(8,0) plot points (x-axis 0-50 by 10s)(y-axis 0-10 by 2s) and answer following questions If the economy characterized by this production possibilities table and curve is producing 3 automobiles and 20 forklifts, what could you conclude about its use of available resources? The economy is _____(underutilizing/overutilizing)____ its available resources.

c

Refer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): (automobile production, forklift production) (0,30)(2,27)(4,21)(6,12)(8,0) plot points (x-axis 0-50 by 10s)(y-axis 0-10 by 2s) and answer following questions Upon what specific assumptions is this production possibilities curve based? a. investments, entrepreneurial ability, and full employment b. land, full employment, fixed technology, and two goods c. full employment, fixed supplies of resources, fixed technology, and two goods d. land, labor, capital, and entrepreneurial ability

no, yes, yes

Refer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): (automobile production, forklift production) (0,30)(2,27)(4,21)(6,12)(8,0) plot points (x-axis 0-50 by 10s)(y-axis 0-10 by 2s) and answer following questions a. Is production at a point outside the production possibilities curve currently possible? ( Yes / No ) b. Could a future advance in technology allow production beyond the current production possibilities curve? ( Yes / No ) c. Could international trade allow a country to consume beyond its current production possibilities curve? ( Yes / No )

9, 2, a

Refer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): (automobile production, forklift production) (0,30)(2,27)(4,21)(6,12)(8,0) plot points (x-axis 0-50 by 10s)(y-axis 0-10 by 2s) and answer following questions p1. If the economy is at point C, what is the (opportunity) cost of 2 more automobiles? ________________ p2. What is the (opportunity) cost of 6 more forklifts? ________________ p3. Which characteristic of the production possibilities curve reflects the law of increasing opportunity costs: its shape or its length? a. shape b. length

d

Suppose that, on the basis of a nation's production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. Now consider the following statement: "Through international specialization and trade, a nation can reduce its opportunity cost of obtaining goods and thus move outside its production possibilities curve." Which of the following explains the relationship between the situation described and the statement? a. International specialization means directing domestic products to the output that a nation is highly efficient at purchasing. b. The input gains from greater international specialization and trade are the equivalent of economic growth. c. Specialization and trade have the same effect as having more and better products or discovering improved production techniques. d. Specialization and trade have the same effect as having more and better resources or discovering improved production techniques.

macro

The consumer price index rose by 2.2 percent from November 2017 to November 2018: (micro or macro)

macro

The unemployment rate in the United States was 3.7 percent in December 2018: (micro or macro)