Econ ch 1 hw
Why is entrepreneurial ability distinct from labor even though both are considered as a category of economic resource?
Because entreprenuerial ability is not directly engaged in production.
If current output is such that marginal cost exceeds marginal benefit, should more or fewer resources be allocated to this product?
Fewer
Janice really likes potatoes. At best any other goods are worth less than a dollar to her, potatoes cost $1 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.
How many pounds of potatoes will she purchase? 3 pounds of potatoes. b. What if she only had $2 to spend? 2 pounds of potatoes.
Which of the following can be stated as potentially true about any economic?
Its current choice of positions its production possibilities frontier helps determine its future location.
With these curves, the optimal allocation of resources to a particular product will occur when:
MB=MC
Why is money not considered to be a capital resource in economics?
Money is not considered a capital resource because money is : not productive
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?
Specialization and trade have the same effect as having more and better resources or discovering improved production techniques.
Which of the following represent a normative economic statement?
The government ought to lower taxes so people have more money.
Specify the typical shapes of marginal-benefit and marginal-cost curves.
The marginal benefit curve is : downward sloping. The marginal cost curve is upward Correct sloping.
Which of the following represents a positive economic statement?
The unemployment rate is 4.8 percent.
A nations production possibilities curve (PPC) can shift outward:
With an increase in the quality and quantity of resources/Through the use of improved production techniques/As a result of specialization and trade
Because economic resources are used to produce goods and services, they are called
factors of production or inputs
Indicate whether each of the following statements applies to microeconomics or macroeconomics:
he unemployment rate in the United States was 8.1 percent in August 2012: Macroeconomics b. A U.S. software firm discharged 15 workers last month and transferred the work to India: Microeconomics c. An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise: d. U.S. output, adjusted for inflation, decreased by 2.4 percent in 2009: Macroeconomics Correct . e. Last week Wells Fargo Bank lowered its interest rate on business loans by one-half of 1 percentage point: f. The consumer price index rose by 3.8 percent from August 2011 to August 2012: Macroeconomics
Economic growth is the result of:
improvements in resource quality, technological advances, increase in the supply of resources.
Economists classify resources as
labor, land, real capital, and entrepreneurs.
. Economic resources are the:
natural, human, and manufactured inputs used to produce goods and services.
Studies indicate that married men on average earn more income than unmarried men of the same age and education level. From this statement, we can conclude that
there is a correlation, but marriage is not necessarily the cause of higher income for married men.