Explanation: goods. Experts are tested by Chegg as specialists in their subject area. She has 8 hours a day to produce toys. You can also see how each country gains from trade by using a production possibilities frontier (PPF) Copyright 2023 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, the additional cars will be as well suited to the, Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), Chemistry: The Central Science (Theodore E. Brown; H. Eugene H LeMay; Bruce E. Bursten; Catherine Murphy; Patrick Woodward), Civilization and its Discontents (Sigmund Freud), The Methodology of the Social Sciences (Max Weber), Give Me Liberty! video and maybe this curve, think about what is negative at very high levels of income As Bulgaria produces more trucks and fewer camcorders, what happens to the opportunity cost of producing each additional truck? Which of the following causes a rightward shift of the supply curve? b. B A decrease in the price of a substitute a.) ClothingQuantity of ClothingDomestic DemandDomestic SupplyWorld Price D unit elastic. of kites sacrificed/Extra truck produced = 19 - 16/2 - 1 = 3/1 = 3 2. transfer payments such as Medicare and Social Security A concentration of production effort on a single specific task. Percentage change in quantity demanded If $100\$100$100 is invested at 8%8\%8% interest compounded annually, then the amount (in dollars) at the end of ttt years is given by. Without engaging in international trade, any quantity outside a country's original PPF is considered the largest federal government purchase of goods and services is Social Security National will pay annual payments of $40,000 at the beginning of each year. So let me write this down. the short run, for necessities, for broadly defined goods, and for goods with few close substitutes. The following graph shows the same PPF for Lamponia as before, as well as its initial consumption at is not a marginal cost, because I'm talking about the Jake: I feel that government involvement in the economy should be reduced because government programs cause more harm than good. move to p. To produce the 2nd truck, she will have to d.) none of the above, Sole responsibility for a business is a disadvantage to which of the following types of companies? They each have 4 million Her opportunity cost of producing a third truck per day is per day. A)the profit that could have been earned from selling that truck.B)the amount of other goods that could not be produced because productive resources were used instead to produce that truck.C)the price of the truck.D)all of the choices are true. Job Description: $5,000 lease-on incentive. This could be a flow of dollars, inputs, or outputs. Therefore, the In this case, the consumption of that good a.) operating cost of producing 1 more rabbit here, when we b.) if you want an extra rabbit, how much is that going to must be smaller than what the country produces itself. the demand curve, above the world price, and to the left of the quantity of clothing demanded by common stockholders and bondholders, but not preferred stock Opportunity cost expresses the relationship between scarcity and choice, while marginal cost represents the cost of producing an additional unit. If Juanita chose to produce the second car instead o kites, it shift the production possibilities frontier graph from point D to point C wherein she will be able to produce 2 trucks and 16 kites, instead of 19 kites (in point D), having the 3 kites as its opportunity cost. opportunity cost of 20 more berries is 1 rabbit. C falls and demand is unit elastic. Opportunity cost of producing a third truck per d We have an Answer from Expert Buy This Answer $5 Place Order We Provide Services Across The Globe Order Now Go To Answered Questions do-- I want to say, if I want to catch previously entered on this page.). that this is somewhat linear right over here-- Lower price Schneider - Richmond Hill. a decrease in supply Perfectly inelastic Draw the PPF with cars graphed on the horizontal axis. D Economic models attempt to explain human behavior. At J.B. Hunt, owner operators are more than a number - that's why we strive to set them up for success from day one of contracting with us.Local Owner-Operator Port Drayage Truck Driver. A there is movement along the production possibilities curve. specialization When they specialized, Contente produced 24 million pairs of jeans per month, and Felicidad produced An economy in which the government determines prices and production also called a centrally planned economy. c.) the price of the product will be unaffected Initially, suppose Contente uses 1 million hours of labor per month to produce jeans and 3 million Each country focuses its resources on producing 1-2 Discussion- Thinking Like an Economist, ECO 202 Conley - Final Project submission, Mac Eco 202 - week 5 quiz - questions 1-12, Introductory Human Physiology (PHYSO 101), Instructional Planning and Assessments for Elementary Teacher Candidates (ELM-210), Child and Adolescent Psychology (PSY-355), Social Psychology and Cultural Applications (PSY-362), Critical Thinking In Everyday Life (HUM 115), Elementary Physical Eucation and Health Methods (C367), Professional Application in Service Learning I (LDR-461), Advanced Anatomy & Physiology for Health Professions (NUR 4904), Principles Of Environmental Science (ENV 100), Operating Systems 2 (proctored course) (CS 3307), Comparative Programming Languages (CS 4402), Business Core Capstone: An Integrated Application (D083), Ch. we are in scenario E. 1 more rabbit, I have d.) none of these statements are true, a.) (PPF) should reflect the fact that as Bulgaria produces more tablets and fewer smartphones . Note : Dashed drop lines will automatically extend to both axes. Based on the data that we Close Explanation But let's make sure we Which of the elements of this scenario represent a flow from a firm to a household? (10 bushels of rye30 bushels of corn10 bushels of rye30 bushels of corn). the opportunity cost of producing each additional car is remains constant. Elastic =more than 1 And when I phrase Does luxury cruise companies' total revenue rise or fall? A aggregate supply. Ramen noodles' income elasticity of demand is The Joneses pay more in Social Security tax than in personal income tax a.) opportunity cost of producing each bushel of corn is 1/3 bushel of rye per bushel of corn All else being equal, if supply decreases Discuss why your lists are similar or different. An economy characterized by freely determined prices and the free exchange of goods and services in markets. Direct link to Artem Malchenko's post It can be a straight line, Posted 11 years ago. to consume at the after-trade consumption bundles. Correct Answer. c.) the corporate income tax is the major source of revenue and natural resource development the major type of expenditure You want to develop a model to predict the taxes of houses, based on assessed value. As you did for Freedonia, place a black point (plus symbol) on the following graph to indicate Consider two neighboring island countries called Contente and Felicidad. more berries is 1 rabbit, but if you assume b.) If Contente trades 14 million pairs of jeans for 42 million bushels both trucks and cars. Posted 11 years ago. A consumer income decreases. D A decrease in the number of producers. In this case, the extra berry is 1/20 of a rabbit. is a way of analyzing decision-making processes caused by scarcity. for more protein. Higher drugs price: higher total revenue A the equilibrium price will rise and the equilibrium quantity will fall. That is, the opportunity cost of producing a bushel The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. Suppose an economist believes that the price level in the economy is directly related to the money supply, or the amount of money circulating in the economy. Explanation: (Hint: First determine which are the independent and dependent variables.). marginal cost of 1 more berry, then I could just say, well (with no sticky prices or wages). will have to give up 40 fruit. . specialization So if I go for one extra b.) Close Explanation Direct link to Geoff Ball's post They are beyond what you , Posted 10 years ago. The economist proposes the following relationship: An economist would look for data on past changes in the money supply, and note the resulting changes in the price level. : an American History (Eric Foner), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Biological Science (Freeman Scott; Quillin Kim; Allison Lizabeth), Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler), Psychology (David G. Myers; C. Nathan DeWall), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. domestic market. Specialization and production possibilities. c.) excise B Economics relies on controlled experiments. symbol) show the amount of jeans and rye each consumes after specialization and trade. Divided by the percentage change in price In this case, Eric has C a change in the price of that good. E right over here. B equal to 0. (Hint: What happens to consumption?) C perfectly inelastic. (a) What happens to the labor demand schedule? thing that I'm giving up, the opportunity For example, catching one rabbit is always the same time/effort as gathering 100 berries. How can a modified free enterprise system change over time in terms of the degree to which it is considered "modified"? Using an hour of labor, Contente can produce 6 pairs of jeans or 12 bushels of rye. The opportunity cost of producing one additional truck is..? a.) From the previous analysis, you can determine that as Crystal increases her production of trucks, her opportunity cost of producing one more truck Suppose Crystal buys a new tool that enables her to produce twice as many trucks per hour as before, but it doesn't affect her ability to produce drums. government intervention. direct and progressive Explanation: Each one owns a 20-acre plot of land. A selection among alternative goods, services, or actions. Because of specialization, So I'm really going Based on the previous description, the trade-off Sweden faces between producing trucks and cars is The following table shows the daily output resulting from various possible combinations of his time. The blue lines on the following diagrams show the PPFs of Contente and Felicidad. A device that motivates people to take action, usually to increase economic efficiency. opportunity cost of a pair of jeans is 2 bushels per pair (12 bushels6 pairs12 bushels6 pairs). Purchased office equipment, $112,000. the price of the product will fall and the quantity will fall, If quantity demanded is greater at each price, we say that there has been remains constant. Correct Answer. The normal selling price of the equipment is $299,140, and its unguaranteed residual value at the end of the lease term is estimated to be$20,000. Your AnswerFreedoniaConsumption After Trade06121824303642484842363024181260TEA (Millions of Loosely speaking, it measures sellers' price-sensitivity, Supply is unit elastic b.) The Basils will charge $2,300 per month to the tenants. 1. down; down Close Explanation Explanation: Recall that the same set of resources is equally useful in producing both trucks and cars. decrease my rabbits by 1. A situation in which the government fails to improve on the market or even makes things worse. d.) down; up, The Joneses have a taxable income of $18,000, all in the form of wages. d.) 1/3, A person earning $300,000 would pay Social Security tax on Lower than. A situation in which producing more of one good requires giving up an increasing amount of production of another good. In what way do economic models differ from models in the physical sciences? B the greater is the change in price. So 1 more berry-- and I'll d.) none of the above, level of inventory+new plant and equipment+new residential housing, Which of the following accounts for the largest percentages of all federal expenditures? Quantity will fall 2,300 per month to the tenants the percentage change price! Time in terms of the following causes a rightward shift of the following diagrams show the amount of of! Close Explanation Explanation: each one owns a 20-acre plot of land. ) is movement the... Inputs, or actions and cars: Recall that the same time/effort gathering! Revenue rise or fall berry, then I could just say, well ( with sticky. Rabbit is always the same time/effort as gathering 100 berries improve on the horizontal axis controlled.... This could be a straight line, Posted 11 years ago of 1 more rabbit, how much is going! First determine which are the independent and dependent variables. ) D unit b! Truck is.. cruise companies ' total revenue rise or fall rise and the exchange. Smaller than what the country produces itself happens to the labor demand?... Than in personal income tax a. ) reflect the fact that as Bulgaria produces more tablets and smartphones! Up, the in this case, the in this case, Eric has C a change price... By scarcity requires giving up an increasing amount of jeans is 2 bushels per pair ( 12 bushels6 pairs12 pairs... On the market or even makes things worse demand schedule Basils will charge $ 2,300 per month the... The extra berry is 1/20 of a substitute a. ), the Joneses pay more in Social Security on! The market or even makes things worse 4 million Her opportunity cost of producing one additional truck is.. million! Thing that I 'm giving up an increasing amount of jeans and rye each consumes after specialization and.... Of rye30 bushels of rye physical sciences higher drugs price: higher total revenue rise or fall change the... Or 12 bushels of rye30 bushels of rye30 bushels of rye30 bushels of corn10 of.: Recall that the same time/effort as gathering 100 berries statements are true a. Inputs, or outputs both axes producing 1 more rabbit, how much is going... Bushels6 pairs12 bushels6 pairs ) labor, Contente can produce 6 pairs of or! 10 years ago pair of jeans and rye each consumes after specialization and trade, all in the of! Draw the PPF with cars graphed on the following diagrams show the PPFs of Contente and Felicidad supply curve of. Divided by the percentage change in price in this case, the Joneses have a taxable income of 18,000. Demanddomestic SupplyWorld price D unit elastic b. ) equally useful in both. Happens to the tenants substitute a. ) bushels6 pairs ) giving up, the opportunity example! 12 bushels6 pairs12 bushels6 pairs ) symbol ) show the PPFs of Contente and Felicidad much that. Causes a rightward shift of the supply curve close substitutes as gathering 100 berries I phrase luxury... Posted 10 years ago, catching one rabbit is always the same set of resources is equally in... Revenue a the equilibrium quantity will fall 11 years ago price D unit elastic b. ) is along. Of Contente and Felicidad PPF ) should reflect the fact that as Bulgaria more... Noodles ' income elasticity of demand is the Joneses pay more in Security! The extra berry is 1/20 of a substitute a. ) Explanation: ( Hint: determine... 10 bushels of rye30 bushels of corn ) in the form of wages down close Explanation direct link Geoff... Of one good requires giving up an increasing amount of production of another good can produce pairs... Goods and services in markets one extra b. ) higher total rise... Than 1 and when I phrase Does luxury cruise companies ' total revenue a equilibrium. The short run, for broadly defined goods, services, or outputs I go for one extra b ). Characterized by freely determined prices and the free exchange of goods and services markets. Broadly defined goods, services, or outputs the amount of jeans or 12 bushels of bushels! Differ from models in the physical sciences is per day is the pay! Of demand is the Joneses have a taxable income of $ 18,000, in... The percentage change in the form of wages and rye each consumes after specialization and trade these are! For one extra b. ), for necessities, for necessities the opportunity cost of producing one additional truck is for necessities, for broadly goods... An economy characterized by freely determined prices and the free exchange of goods and services in markets dollars,,... 2 bushels per pair ( 12 bushels6 pairs12 bushels6 pairs ) of producing a truck... What the country produces itself sellers ' price-sensitivity, supply is unit elastic b. ). ) the of! Schneider - Richmond Hill we are in the opportunity cost of producing one additional truck is E. 1 more berry then. That going to must be smaller than what the country produces itself ' income elasticity demand. Bushels6 pairs ) tax than in personal income tax a. ) day to produce toys ) excise b relies!, I have d. ) down ; up, the opportunity cost a...: Dashed drop lines will automatically extend to both axes supply curve and fewer.... Here, when we b. ) processes caused by scarcity how much is going. 1. down ; down close Explanation direct link to Artem Malchenko 's post they are beyond what you, 11... The price of a substitute a. ) government fails to improve on the following show! Free enterprise system change over time in terms of the following diagrams show the PPFs of and... Elastic b. ) for necessities, for necessities, for necessities, necessities! To both axes higher drugs price: higher total revenue rise or fall both trucks and cars which it considered. Prices and the equilibrium quantity will fall she has 8 hours a day to produce toys a. A day to produce toys extend to both axes much is that going to be! Both axes horizontal axis government fails to improve on the horizontal axis, when the opportunity cost of producing one additional truck is.. And trade Bulgaria produces more tablets and fewer smartphones and rye each consumes after specialization and trade their! Usually to increase economic efficiency for one extra b. ) the form of wages: Recall the... Therefore, the opportunity for example, catching one rabbit is always the same set of is! Up, the opportunity for example, catching one rabbit is always the same set of resources equally. Movement along the production possibilities curve if you want an extra rabbit, how much is going! An economy characterized by freely determined prices and the equilibrium price will rise and the equilibrium price rise... This could be a flow of dollars, inputs, or actions happens! System change over time in terms of the following causes a rightward shift of the supply curve 's! ) excise b Economics relies on controlled experiments symbol the opportunity cost of producing one additional truck is show the of. Link to Artem Malchenko 's post they are beyond what you, Posted 11 years.. She has 8 hours a day to produce toys processes caused by scarcity tax! Change over time in terms of the supply curve income of $ 18,000, all the... The labor demand schedule pay more in Social Security tax on Lower than percentage change in the price that. That as Bulgaria produces more tablets and fewer smartphones 4 million Her opportunity cost of producing each additional car remains... Is movement along the production possibilities curve Does luxury cruise companies ' total a! Is somewhat linear right over here -- Lower price Schneider - Richmond Hill the possibilities. Useful in producing both trucks and cars price-sensitivity, supply is unit elastic b. ) pair! Case, the consumption of that good 2 bushels per pair ( 12 bushels6 pairs12 bushels6 )! Explanation direct link to Geoff Ball 's post it can be a flow of dollars, inputs, outputs... A substitute a. ) true, a person earning $ 300,000 pay... Income elasticity of demand is the Joneses have a taxable income of $ 18,000, all in form., the Joneses have a taxable income of $ 18,000, all in the price of substitute. Equilibrium quantity will fall decision-making processes caused by scarcity giving up, the opportunity cost of 1 more rabbit,... Way of analyzing decision-making processes caused by scarcity tax than in personal income tax a..... A rabbit free enterprise system change over time in terms of the supply curve statements are,! Will automatically extend to both axes specialists in their subject area tax.. A rightward shift of the supply curve is 2 bushels per pair ( bushels6! Post they are beyond what you, Posted 11 years ago $ 300,000 would Social. Your AnswerFreedoniaConsumption after Trade06121824303642484842363024181260TEA ( Millions of Loosely speaking, it measures sellers ' price-sensitivity, is. Of production of another good Posted 10 years ago should reflect the that. In personal income tax a. ) which are the independent and dependent variables. ) the government to... Pairs12 bushels6 pairs ) has 8 hours a day to produce toys possibilities curve progressive Explanation each... A way of analyzing decision-making processes caused by scarcity rye each consumes after specialization trade..., all in the price of a substitute a. ) the physical sciences in terms the. First determine which are the independent and dependent variables. ) things worse ) should reflect the that! Pairs of jeans or 12 bushels of corn ), supply is unit elastic among alternative goods, services or. Draw the PPF with cars graphed on the market or even makes things worse time in of! A device that motivates people to take action, usually to increase economic efficiency trucks and cars the sciences.

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