Econ 1b hw 9,11,12
You and your neighbor pick apples and cherries. If you can pick apples at a lower opportunity cost than your neighbor, which of the following statements is true?
All of the above.
Who gains and who loses when a country imposes a tariff or a quota on imports of a good? Suppose the United States imposes a tariff or quota on sugar imports. For each of the following, enter the letter G if it will gain from the tariff or quota or enter the letter L if it will lose from the tariff or quota.
Domestic sugar producers and their workers G Consumers L Industries that use sugar and their workers L The U.S. economy L
Which of the following is not a main source of comparative advantage?
Internal economies of scale.
Suppose Italy and Spain produce only cloth and wine. Assume that each country uses only labor to produce each good, and that the cloth and wine made in Italy and Spain are exactly alike. The table below shows how much each country can produce of each good with one hour of labor. Output per Hour of Labor Italy Cloth wine 23 14 Spain Cloth wine 4 6 According to the table, the opportunity cost to Italy of producing one more unit of cloth is .60 units of wine (enter a numeric response using a real number rounded to two decimal places), and the opportunity cost to Spain of producing one more unit of cloth is 1.5 units of wine. Thus, we can conclude that:
Italy has a comparative advantage in producing cloth and Spain has a comparative advantage in producing wine.
Chapter 11 What is the difference between technology and technological change? Technology is the process of using inputs to make output, while technological change is when a firm is able to produce the same output using fewer inputs.
chapter 11 question 1
The table below shows the quantity of workers and total output for a local pizza parlor. Answer the following questions based on this table: Quantity of Workers Total Output 0 0 1 66 2 long dash— 3 2020 4 2525 5 2929 6 2727 a. When the owner hires 4 workers, the average product of labor is 6.25 pizzas. (Enter your response rounded to two decimal places.) b. The marginal product of the fifth worker is 44 pizzas. (Enter your response as a whole number.) c. If the marginal product of the second worker is6, then the total number of pizzas produced when 2 workers are hired is 12 pizzas. (Enter your response as a wholenumber.) d. Assuming the marginal product of the second worker is 6, the law of diminishing marginal returns set in with the fourth worker hired.
chapter 11 question 10
What is the difference between the average cost of production (ATC) and marginal cost of production (MC)? ATC equals=nbsp StartFraction TC Over Upper Q EndFraction TCQ; MC equals=StartFraction Upper Delta TC Over Upper Delta Upper Q EndFractionΔTCΔQ.
chapter 11 question 11
An example of technological change is all of the above
chapter 11 question 2
What is the difference between the short run and the long run? In the short run, at least one of a firm's inputs is fixed, while in the long run, a firm is able to vary all its inputs and adopt new technology. Is the amount of time that separates the short run from the long run the same for every firm? no
chapter 11 question 3
What are implicit costs? An implicit cost is a nonmonetary opportunity cost. How are implicit costs different from explicit costs? An explicit cost is a cost that involves spending money, while an implicit cost is a nonmonetary cost.
chapter 11 question 4
[Related to the Making the Connection] For Jill Johnson's pizza restaurant, explain whether each of the following is a fixed or variable cost. The payment she makes on her fire insurance policy is a fixed cost. The payment she makes to buy pizza dough is a variable cost. The wages she pays her workers is a variable cost. The lease payment she makes to her landlord who owns the building where her store is located is a fixed cost. The $300-per-month payment she makes to her local newspaper for running her weekly advertisements is a fixed cost.
chapter 11 question 5
Suppose that Bill owns an automobile collision repair shop and the table below shows the quantity of cars repaired per month according to how many workers Bill hires. Assume he pays each worker $6 comma 0006,000 per month and his fixed cost equals $6 comma 0006,000 per month. Using the information provided, complete the table given below. (Enter your responses rounded to two decimal places.) table question
chapter 11 question 6
A county government hires lawyers to defend itself in lawsuits. The local government provides its legal staff with an office building. The table below shows how many cases can be handled with different numbers of lawyers over the course of a year. Lawyers Office Buildings Cases 0 1 0 1 1 1212 2 1 2828 3 1 3636 4 1 4040 5 1 4242 Suppose each lawyer is paid $80 comma 00080,000 per year and the office building is rented for $500 comma 000500,000 per year. If the county decides to hire 33 lawyers to handle 3636 lawsuits, what will be the average fixed cost of each case? What will be the average variable cost of each case? The average fixed cost of each case will be $13888.8913888.89 per year, and the average variable cost will be $6666.676666.67. (Enter numeric responses using real numbers rounded to two decimal places.) table question
chapter 11 question 7
What is the law of diminishing returns? The law of diminishing returns states that adding more of a variable input to the same amount of a fixed input will eventually cause the marginal product of the variable input to decline. Does it apply in the long run? No
chapter 11 question 8
Fill in the marginal product and average product of labor in the following table. (Enter numeric responses using real numbers rounded to two decimal places.) table question
chapter 11 question 9
The following table shows the hourly output per worker measured as quarts of olive oil and pounds of pasta in Greece and Italy: Output per Hour of Work Olive Oil Pasta Greece 44 22 Italy 44 88 The opportunity cost of producing one more quart of olive oil in Greece is . 50.50 pounds of pasta. (Enter your response rounded to two decimal places.) The opportunity cost of producing one more quart of olive oil in Italy is 2.002.00 pounds of pasta. (Enter your response rounded to two decimal places.) The opportunity cost of producing one more pound of pasta in Greece is 2.002.00 quarts of olive oil. (Enter your response rounded to two decimal places.) The opportunity cost of producing one more pound of pasta in Italy is . 50.50 quarts of olive oil. (Enter your response rounded to two decimal places.)
chapter 9 hw number 2
The United States produces beef and also imports beef from other countries. The graph to the right shows the supply and demand for beef in the United States, under the assumption that the United States can import as much as it wants at the world price of beef without causing the world price of beef to increase. a. How much beef does the United States import at the world price(WP)? 500 million pounds of beef (enter a whole number). b. Now suppose that the United States imposes a tariff on beef of $0.50 a pound. How much beef is now imported? 200 million pounds of beef (enter a whole number). c. Do domestic producers of beef gain or lose when the United States imposes a tariff on beef? Gain d. Does the government gain or lose when the United States imposes a tariff on beef? Gain e. Do domestic consumers of beef gain or lose when the United States imposes a tariff on beef? Lose
chapter 9 question 11
The graph at right shows the effect on consumer surplus, producer surplus, government tariff revenue, and economic surplus of a tariff of $1 per unit on imports of plastic combs into the United States. Use the areas denoted in the graph to answer the following questions. Which area(s) shows the total loss to U.S. consumers as a result of the tariff on combs? A + B + C + D. Which area(s) shows the amount of surplus transferred from consumers to producers as a result of the tariff on combs? A. Your answer is correct. Which area(s) show the deadweight loss to the U.S. economy as a result of the tariff on combs? B + D
chapter 9 question 12
According to an editorial in the Washington Post: "Sugar protectionism is a burden on consumers and a job-killer." Source: "Sourball," Washington Post, March 22, 2010. a. The United States practices "sugar protectionism" by imposing a quota on sugar imports b. In what way is sugar protectionism a burden on consumers? As far as the effect of "sugar protectionism" on U.S. consumers is concerned, it raises the prices of sugar and candy that consumers have to pay and leads to a loss of consumer surplus. "Sugar protectionism" is viewed as a "job killer" because it leads to job losses in the candy industry and various food manufacturing industries that use sugar. c. If sugar protectionism has the bad effects as stated in the editorial, which of the following is a likely reason why Congress and the president do not eliminate it? All of the above.
chapter 9 question 13
[Related to Solved Problem #4] Suppose that the United States currently both produces kumquats and importsLOADING... them. The U.S. government then decides to restrict international trade in kumquats by imposing a quotaLOADING... that allows imports of only six million pounds of kumquats into the United States each year. The figure to the right shows the results of imposing the quota. Fill in the following table (enter all numeric responses rounded to the nearest penny for prices and as whole numbers for quantities).
chapter 9 question 14
Refer to the graph to the right about the market for lumber in the United States. The graph shows the effect of a $0.50 per board foot tariff on lumber. What is the quantity of lumber supplied (in thousands of board feet) by domestic producers after the tariff? 900 What is the reduction in U.S. lumber consumption (in thousands of board feet) as a result of the tariff? 100
chapter 9 question 15
Globalization is the process of countries becoming more open to foreign "trade and investment." Some people are opposed to globalization because they all of the above
chapter 9 question 16
Protectionism is the use of trade barriers to shield domestic firms from foreign competition. Protectionism is usually justified on the basis of several arguments which include: saving jobs, protecting infant industries, and protecting national security.
chapter 9 question 17
Many economists discourage restrictions on trade, emphasizing the costs associated with tariffs and quotas. However, the U.S. government still receives pressure from some to erect trade barriers, and some trade barriers are still in place. Why would policymakers (such as those in Congress) understand the potential benefits from trade yet support trade restrictions? The costs of trade restrictions per consumer are small.
chapter 9 question 18
The World Trade Organization (WTO) all of the above
chapter 9 question 19
What is the name given to the sale of a product for a price below its cost of production? dumping How does the World Trade Organization (WTO) allow countries to determine whether dumping has occurred? The WTO allows countries to determine that dumping has occurred if a product is exported for a lower price than it sells for on the home market.
chapter 9 question 20
[Related to Solved Problem #3] The table below shows the hourly output per worker in two industries in Chile and Argentina. Use this table to answer the following questions.
chapter 9 question 7
Suppose France and Portugal produce only cloth and wine. Assume that each country uses only labor to produce each good, and that the cloth and wine made in France and Portugal are exactly alike. The table below shows how much each country can produce of each good with one hour of labor: Output per Hour of Labor Cloth Wine France 1919 1515 Portugal 44 77
chapter 9 question 9
Instagram is a smartphone app now owned by Facebook. According to an article that discusses the climate for software firms in the San Francisco Bay Area, the success of Instagram "is a tale about the culture of the Bay Area tech scene, driven by a tightly woven web of entrepreneurs and investors who nurture one another's projects with money, advice and introductions to the right people." Source: Somini Sengupta, Nicole Perlroth, and Jenna Wortham, "Behind Instagram's Success, Networking the Old Way," New York Times, April 13, 2012. Being located in the Bay Area gives start-up software firms an advantage because of The advantages the Bay Area has are
external economies. likely to persist over time because more software firms will locate there, enhancing the external economies.
Although international trade leads to substantial net benefits, not everyone gains from international trade. Which of the following groups is most likely to lose from trade?
the workers and companies in the industries that compete with the imports
