6. Which statement is true? L. A negative productivity shock to all goods and services can be represented as a shift inwards of the Production Possibilities Frontier. II. A positive productivity shock to all goods and services can be represented as a shift inwards of the Production Possibilities Frontier. III. The slope of the production possibilities frontier is the opportunity cost of producing an additional unit of a good in terms of the other good. a. only I and III are true b. only I is true c. only II and III are true d. only III is true e. only II is true

6. Which statement is true? L. A negative productivity shock to all goods and services can be represented as a shift inwards of the Production Possibilities Frontier. II. A positive productivity shock to all goods and services can be represented as a shift inwards of the Production Possibilities Frontier. III. The slope of the production possibilities frontier is the opportunity cost of producing an additional unit of a good in terms of the other good. a. only I and III are true b. only I is true c. only II and III are true d. only III is true e. only II is true

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Below is a production possibilities frontier (PPF) for Happyland, acountry that produces only two goods- wine and cheese. wine cheese a) Explain what the production possibilities frontier is and how it illustrates scarcity. b) What happens to the marginal opportunity costof cheese production in Happyland as the country increases its cheese production? (increase, decrease, unchanged or indeterminate?) Explain how you can tell this from the PPFand why it happens. c) Briefly describe two specific policies the government of Happyland could undertake to shift out their PPF in future periods. (By specific policies, I mean something they can actually do to change productivity for either or both of these goods. "Increase resources," for example, is not a specific policy. What resources and what type of policy could increase the resources used for either of these products?)
1. Define positive and normative economics. 2. Is the following positive statements or normative statements? The government should send families $1000 per child even if they do not pay taxes. Rich people are healthier than poor people? Growth in Barbados is slower than growth in Bermuda? The Caribbean should pursue a free trade agreement with the USA? Income taxes are hurting the poor and should be eliminated? 3. a. What is market equilibrium? b. What can cause market disequilibrium? 4 . Under a country's production possibilities frontier when is an economic outcome said to be (a) efficient and (b) inefficient?
2.Economic analysis is: O a. Widely understood by all in our society. b. Important for problem solving in underdeveloped and socialist societies but of little use in western capitalist systems. O C.A natural science concerned with the biological growth and changed of social systems. d. A framework for understanding issues with arise because societies need to make allocation decisions. O e. A set of mathematical rules to ensure a society's happiness and prosperity.
QUESTION 19 Mohamed says that "gas prices are rising because there aren't enough oil refineries." Ahmed argues that "gas prices are rising because of the growing demand for gasoline from China and India." We can conclude that O A. Mohamed's statement is positive, but O B. Ahmed's statement is positive, but Ahmed's is normative. OC.Both statements are positive. D. Both Mohamed's is normative. statements are normative
12. A certain production possibilities frontier shows production possibilities for two goods: pants and shirts. Which of the following concepts cannot be illustrated in this model? a. the flow of dollars between (i) sellers of pants and shirts and (ii) buyers of pants and shirts. b. the tradeoff between production of pants and production of shirts. c. the opportunity cost of shirts in terms of pants. d. the effect of economic growth on production possibilities involving pants and shirts.
11 A trader has an absolute advantage in orange production if his unit-labor requirement in oranges is _____ and his labor productivity is _____ A. lower; higher B. higher; lower C. lower; lower D. higher; higher E. moderate; moderate
1. Economics can be defined as: a. The science of mathematics in an economy’s context. b. A social science concerned with the production, consumption and distribution of goods and services. c. A social science concerned with tourism and all its facets. d. A subset of tourism, recreation and mathematics. 2. Which of the following will shift the demand curve for four-star hotel accommodation in New York to the right? e. A rise in the value of the US dollar against other currencies. f. A fall in incomes of consumers. g. A successful advertising campaigns. h. A terrorist threat to New York.
Quantity of Guns Consider the figures above. In Economy B, the opportunity cost of making O A. butter in terms of guns is increasing. OC. butter in terms of guns is higher than in Economy A. O E. guns in terms of butter is decreasing. Production Possibilities Boundary Economy A Quantity of Butter 3 G Quantity of Guns Production Possibilities Boundary Economy B फेकलल Quantity of Butter 7 8 €ƠN OB. butter in terms of guns is decreasing. OD. butter in terms of guns is lower than in EconomyA.
Table 3-20 Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate. Minutes Needed to Make 1 Bushel of Wheat Pound of Beef Brad 10 12 Theresa 6 10 Refer to Table 3-20. What is Brad's opportunity cost of producing one bushel of wheat? O a. 5/6 pound of beef O b. 6/5 pounds of beef O c. 3/5 pounds of beef O d. 5/3 pounds of beef - Icon Ke
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4. In microeconomics the two fundamental assumptions that resources are finite, but economic wants are insatiable are the basis for: O the production possibilities model O the need to use the concept of "ceteris parabis" in microeconomic models O assuming that markets are competitive in the supply and demand model O the concern with efficiency in microeconomics
13. Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.