Economics
The graph shows the production possibilities frontier (PPF) for Shlick, whose main products are pickles and razors. Suppose a discovery is made that adding lemon juice to the vinegar used in the pickling process not only improves the pickles' flavor but also allows the pickling process to occur faster. Please shift the production possibilities frontier accordingly.
see graph.
Select the best choice that completes each sentence. statements say something about how the world ought to be. statements say something that describes how the world currently is.
1st Normative, 2nd Positive.
The scenarios each illustrate a principle of economics. Classify each scenario according to the principle that best fits it. On Black Friday, there are huge sales for electronics at many retail stores. David must decide between buying a camera at one store or a flat screen TV at another store, and buying one means losing out on the ability to purchase the other. An educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. The company compares how much adding another worker will improve the product to the additional cost. Ava finds that there is not enough time after work to have dinner, exercise, and watch TV, and she must make choices about how to use her limited time.
1st Opportunity cost , 2nd Marginal decisions, 3rd resource scarcity.
A farmer produces both beans and corn on her farm. If she must give up 16 bushels of corn to be able to get 6 bushels of beans, then her opportunity cost of 1 bushel of beans is
2.67 bushels of corn.
The accompanying graph contains the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses, and on a given day can produce according to the PPF in the graph. Point A on the PPF represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Please shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than they originally made at point A but still maximize their productive capabilities. Move point A to their new production point.
20 more hoses than before see graph.
Which demonstrates a scenario with no opportunity cost? It's Friday night and you stay up late talking and hanging out with your friends. The chemistry club is giving out free pizza for lunch to all who come to their table to get it. Naomi, age 8, is at a bookstore and chooses to buy a book about a young wizard instead of buying a math textbook that she would probably never open. Chez Moi and Chez Nous, two premiere French restaurants with three Michelin stars, both offer you a full time sous chef job at the same salary. You are ecstatic because you know it is a win-win scenario and choose to work for Chez Nous. All of these scenarios have an opportunity cost.
All of these scenarios have an opportunity cost.
Classify each characteristic according to whether it describes positive economics or normative economics. Positive economics.
Describes current economic events. Is concerned with making predictions about how the economy will change as a result of specific events. is concerned with the effects of an economic decisions will have on the people and not how they will feel about it or what they will believe about why that decision was made.
Suppose that the video game company, Ultravision, releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. MACROEeconomics.
Have the millions that people have spent on video games worldwide affected the GDP in their respective countries. Has the countries economic rate changed as ultra vision hired a huge team of workers to develop the game. How much less economic output occurs countrywide because workers call in sick to stay home and play call of obligation or another video game.
Suppose that the video game company, Ultravision, releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. Microeconomic
How does ultra vision choose to market "call of obligation"? How much will they charge for "call of obligation? How much will ultravision pay the developers? Is ultravision able to sell all of the games it produces or do they need more?
Kimiko is planning a party to celebrate her birthday. She has decided to serve sushi and yakitori meat skewers. Each serving of sushi is $8 and each yakitori is $2. Kimiko has $240 to spend on the party, and her budget line is shown below. Her friend Barry thinks there will not be enough food, so he gives Kimiko $80 more to spend on the party (she now has $320). Show Kimiko's new budget line in the graph below and answer the question. Which good will Kimiko buy more of? She will buy the same amount of both. Sushi because she likes it better. Only Kimiko knows; the question does not provide enough information. Yakitori skewers because they are cheaper, so they offer more bang for her buck.
Only Kimiko knows; the question does not provide enough information.
Anastasia uses her allowance to buy coffee and pizza. Her budget constraint is shown in the graph. Suppose that Anastasia's parents reduce her allowance. Modify the budget constraint line to reflect her new situation. To do so, drag the endpoints of the line to new poistions.
See graph
Belinda is in school learning to be a welder. She spends long hours studying (and drinking coffee) and long hours practicing in the hot, dirty shop (and therefore takes frequent showers). Belinda has $70.00 per month to spend on the soap and coffee she needs to function properly. In the accompanying graph, move the BC line to correctly depict Belinda's budget constraint, assuming the soap costs $3.50 per bottle, and the coffee costs $14.00 per pound. If a point will not go where you want to put it, try placing the other endpoint there. Then, classify the lettered points according to whether they describe baskets of goods that are unaffordable, affordable and exhaust Belinda's budget, or affordable with money left over.
See graph.
Why is the shape of the production possibilities frontier (PPF) often curved instead of straight? To take a potential sunk cost into account, the PPF is curved to distribute the burden of the sunk cost based on allocative effieciency. Typically, some resources are better suited for producing one good than another, which means that there are diminishing returns when moving such resources away from producing what they are best suited for. Because the production possibilities frontier is based on the productive capabilites, and of a nation overall, rather than the productive capacity of an individual. The productive efficiency of an economy decreases as it moves from left to right along the PPF.
Typically, some resources are better suited for producing one good than another, which means that there are diminishing returns when moving such resources away from producing what they are best suited for.
Which of the following questions would be studied in the area of microeconomics? Does hosting the Olympics decrease the unemployment rate? Will an increase in government spending cause inflation? What portion of total spending comes from households? What determines the number of hours an individual works? Do interest rates affect net exports?
What determines the number of hours an individual works?
Classify each characteristic according to whether it describes positive economics or normative economics. Normative economics.
involves recommendations or arguments about what should be. offers plans for what the economy should look like based on individuals subjective values an beliefs. is concerned with a variety of how moral or ethical questions should be solved.