Blog

Figure 2-4 Graph (a) Graph (b) ​Refer to Figure 2-4, Graph (a) and Graph (b). A shift of the economy’s production possibilities frontier from Graph (a) to Graph (b) could be caused by

Gary and Diane must prepare a presentation for their marketing class. As part of their presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take Gary 10 hours to do the required calculation and 10 hours to prepare the slides. It would take Diane 12 hours to do the calculations and 20 hours to prepare the slides. How much time would it take the two to complete the project if they divide the calculations equally and the slides equally? How much time would it take the two to complete the project if they use comparative advantage and specialize in calculating or preparing slides? If Diane and Gary have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides? What is it?

Suppose the income of buyers in a market for an inferior good decreases and a technological advancement occurs also. What would we expect to happen in the market?

An economy’s production of two goods is efficient if

Which of the following is an example of a positive, as opposed to a normative, statement?

Figure 3-5 Refer to Figure 3-5. Suppose Peru decides to increase its production of emeralds by 1. What is the opportunity cost of this decision?

Suppose your management professor has been offered a corporate job with a 25 percent pay increase. They have decided to take the job. For them, the marginal

Communist countries worked under the premise that

Who gets scarce resources in a market economy?

Figure 4-6 Refer to Figure 4-6. The shift from S to S’ is called