b. Control. \text{Bottling department}\\ 0 While many economic questions are open to debate, the field is largely in agreement on some points. Where c1+ b1+g1, A: The loss incurred or gain derived through engaging in a particular activity or choosing an, A: PPC shows the different combinations of production of two goods at a given level of resources and, A: Production possibility frontier (PPF) curve shows the different possible combination of two goods, A: A production possibility frontier (PPF), production possibility curve (PPC), production possibility, A: Ghe production possibility curve is the representation of the potential output of two goods that can, A: A country has a comparative advantage in the good which it produces at a lower opportunity cost than, A: Consider first what is the opportunity cost? In some circumstances, if taxes are lowered, government revenues actually increase. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. 2019 - The South African Department of Employment & Labour Disclaimer PAIA 60 FACTOR Tariffs and import quotas generally reduce economic welfare. itive comment between constructive feedback. The effect of government regulation on a monopolist's production decisions MICRO Economics can accurately predict what the national economy will do in six months to a year. a) Because it does not take . B800400 \end{matrix} b. An increase in taxes raises the price of a product Demand rate is dependent on order quantity. Jacques's opportunity cost of producing the second truck per day is 3 balls per day while the opportunity cost of producing the third truck per day is 5 balls per day. I think government funding of health insurance is useful to ensure basic fairness. Scarcity is in relation to peoples O The fact that there are only twe goods produced in this theoretical economy, when, in reality, economes produce many moe types goods, means this model is generally useless. Course Hero is not sponsored or endorsed by any college or university. goods and services. demonstrate key economic concepts, Which of the following is true regarding this economic model? In some markets, however, the supply of labor is determined by a union of workers. I = bo + b1Y You know the difficulty of remote team members forming bonds with each other. b. households and firms are both sellers. Producing a third truck per day would require him to move to combination B, reducing his production of balls to 11 per day. All Americans should earn more than $25,000 per year. Most questions about economics address the. b. However, positive statements can always be supported or refuted by data, while normative statements require a larger philosophical framework to evaluate. Wages, interest and transfer payments Similarly, when you look at the horizontal axis, you see that if the United Kingdom produces zero industrial robots, it can initially produce a maximum of 210 million bushels of corn per year. In contrast, differences in scientific judgments are due to differing opinions about factual matters, e.g., the relative merits of competing theories or the values of economic parameters. We all laughed at the joke about_ honest man, even thou a. 1 pizza -The $400 per week Sam earns working for Dinah's Diner. Production of Y 6. Balance of Payments When we are discussing international trade, we are focusing on the flow of goods and services, as well as capital, among countries. Y = C+I+G Full Document. The shift in Jacques's PPF is reflected in a corresponding change in his opportunity costs. It takes, A: The PPF's shape and its position will depend on how costly it is to keep the environment clean, that, A: The nations around the world tend to operate on the basis of the basic economic model. PRODUCTION ALTERNATIVES . A) The technological advance reduced the amount of resources needed to produce 30 machines. b. The disagreement between these economists is most likely due to differences in values . produces 2 goods, computers and cell phones. She uses $10 to have breakfast at Dinah's Diner. Consider the following production possibilities frontier model for an economy that produces only two goods: bartey and cars. Points located outside the production possibilities frontier, such as C and D, represent output combinations that are unattainable, given current resources and technology. A. The incidence of the subsidy on the consumer will decrease. Tim (a household) pays Classy's Jewelry Store (a firm) $250 for necklace. C. Holding cost per unit per year is independent of order quantity. 2. Brian uses $225 to purchase medical services from the Medical Clinic. When a domestic currency depreciates, what happens to the purchases of. We all laughed at the joke about_ honest man, even thou Note that describing a statement as positive or normative is not the same as describing it as true or false. D u do first? 18 His opportunity cost of producing a second truck per day is 3 balls per day. 100 You can specify conditions of storing and accessing cookies in your browser. Wants and demands GOOD c. Money It implies that the interest, A: Macroeconomics is the discipline of economics concerned with the overall structure, performance,, A: Answer a) The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. Recall that each point on the production possibilities frontier shows the maximum quantity of corn Japan can produce if it also wants to produce the given quantity of laptops. For women aged 60 to 69, breast cancer screening significantly reduces breast cancer mortality. Therefore, macroeconomists tend to create models to analyze how aggregate phenomena such as growth, inflation, and unemployment respond to policy decisions of governments and central banks, changes in aggregate spending or savings, and supply or demand shocks. B. \end{matrix} Economics is part of the humanities because it studies human decision-making. What does each point represent? Raising the minimum wage increases the rate of unemployment. Show and explain why. Households, earn their income when firms purchase or rent these factors of production to use them to produce. Which of the following is true regarding this economic model? Firms, in turn, earn revenue when households buy goods and services. . Y Given that the technology is only applicable to computer production will the economy be able to produce more cell phones? Economics models can accurately pinpoint changes in exchange rates. Economics is part of the humanities because it studies human decision-making. Draw a productionpossibilities frontier for a society that produces food and clothing. As important. 20 We reviewed their content and use your feedback to keep the quality high. Unformatted text preview: trying to describe. There are two main reasons that economists tend to disagree: differences in values and differences in scientific judgments. ECO 102 Macroeconomics Unit 1 Milestone 1 Sophia Course a; a, 10). Frances: A popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits. It is bordered by Italy to the south, France to the west, Germany to the north and Austria and Liechtenstein to the east.. Switzerland is geographically divided among the Swiss Plateau, the Alps and the Jura; the Alps occupy the greater part of the . O The fact that there are only two goods produced in this theoretical economy, when, in reality, economes produce many more types of According to a circular flow diagram, which of the following flows FROM government TO households? Multiple Choice Question In other words, for each point on his PPF, the vertical coordinate is the same as before, but the horizontal coordinate is twice its initial value. c. Fewer people want them Click below link for Answer The economic, A: Production possibility frontier shows combinations of goods that can be produced using all the, A: Ppc shows the possibility of production with given resources and technology . a. Calculate how much of each service is producedunder the following circumstances, which welabel A, B, C, and D:r All three spend all their time mowing lawns. Those points or, A: In an economy, a statement is said to be a positive statement when it gives direct meaning and based, A: Production possibilities frontier shows different combinations of two goods that can be produced, A: The production possibility frontier (PPF) is a graph that shows the most significant number of, A: Production Possibility Frontier(PPF) is known as the locus of different possible combination of two, A: In Scenario C = 10 bananas and 80 apples are produced As a result of this year the society wants to produce 55 units of food and 30 machines which of the following statements is true? a. 2/4 = 0.5 gallon of, A: PRODUCTION POSSIBILITIES FRONTIER ProductionvolumeLiquidmaterialsDrymaterialsBottlesLabelsMachinesetupsMachinehoursHi-Voltage12,500bottles1,400gallons620pounds12,500bottles3labelsperbottle500setups200MHEasySlim180,000bottles37,000gallons12,000pounds180,000bottles1labelperbottle300setups3,750MH. Identify the correct sequence of step in the generation of an action potential. This change is an example of the law of increasing opportunity costs. B) Sandwich critical feedback between less critical feedback. 25 shares of WUF stock, Purchase of goods and services \text{Utilities}\ldots\ldots\ldots & \text{Machine hours} & \text{1,422}\\ This could be a, The $225 Brian spends to purchase medical services from the Medical Clinic, The $225 per week Brian earns working for Dinah's Diner, When Crystal (a household) supplies her labor to any firm, labor is an input (a factor of production) that, When the breakfast is provided to Crystal (a household), the breakfast is an output that flows from a. Provide examples to support your points. Question: Which of the following is true regarding this economic model? 1 gallon of root beer Profits, dividends and rent Jack owns a convertible bond with a $1,000 face value that can be exchanged for The incidence of the, Which of the following is NOT included on a RACI? The project sponsor asks the project manager to spend less money on materials. Stuart earns $8 per hour working at a fast-foodrestaurant.c. Sam uses $150 to purchase air travel to Hawaii from Flyaway Airlines. Suppose that Jacques, an economist from an AM talk radio program, and Kyoko, an economist from a nonprofit organization on the West Coast, are arguing over saving incentives. The young person's choice maximizes lifetime welfare Because of the drought, fewer bushels of alfalfa can be produced on any given amount of land; however, there is no reason to think that the maximum amount of construction vehicles that can be produced would change. When using combination D, Jacques is producing one truck and 19 balls per day. DepartmentMixingdepartmentLiquidmaterialsDrymaterialsUtilitiesBottlingdepartmentBottlesLabelingMachinesetupDriverGallonsPoundsMachinehoursUnitsLabelsperbottleSetupsCost$2,3046,9411,422$77,0006,52520,000. A key decision maker asks for the, Which of the following is the source of change if the university curriculum committee suggests two of the proposed courses for the curriculum of a new major be completely reworked? 4 F02000 Economists make simplifying assumptions in all economic models in order to focus on the most important economic variables in a given situation. Making these simplifying assumptions allows scientists to focus on only the most important and most generalizable components of the topic of study. Which of the following statements regarding economic resources is true: answer choices . Exchange rates are set by governments and do not change often. Resources are scarce in relation to peoples demands \text{Bottles} \ldots\ldots\ldots & \text{Units} & \text{\$77,000}\\ Tim uses $250 to purchase necklace from Classy's Jewelry Store. This could be a flow of dollars, inputs, or outputs. Hi-VoltageEasySlimProductionvolume12,500bottles180,000bottlesLiquidmaterials1,400gallons37,000gallonsDrymaterials620pounds12,000poundsBottles12,500bottles180,000bottlesLabels3labelsperbottle1labelperbottleMachinesetups500setups300setupsMachinehours200MH3,750MH\begin{matrix} Therefore, the $200 is a payment that flows from a firm to a household. Wants Breast cancer is the fifth most common cause of cancer death. By grouping all individuals into households and firms and all markets into markets for goods and, services and markets for factors of production, economists can model how dollars and resources flow, back and forth among agents in the economy. . A: The production possibility frontier shows the different combination of two goods that can be, A: The wants and desires of the individuals in the economy are unlimited but resources available to, A: The production possibilities frontier (PPF) is a downward sloping curve which is concave to the, A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for. 4). Current Account 3. Explain the different points on the curve. Because he can now make more trucks per hour, Jacques's opportunity cost of producing balls is higher than it was previously. Show graphically and explain how an increase in the technology used to produce computers affects this economy's production possibilities frontier. Vaccination is a method of fighting Covid -19 It's quite easy to prove that you are not the king of Spain, but to argue that it is wrong to kill innocent children, you must appeal to a larger moral framework. In this case, the economists disagree due to differences in scientific judgments because they disagree about a factual matter: the type of policy needed to keep the economy functioning smoothly during a period of financial distress. B Which of the following is TRUE regarding the economic order quantity (EOQ) model? Microeconomics is the study of how prices and quantities are determined through interactions between buyers and sellers (individuals and firms) in individual markets. What happens to this frontier if disease kills half of the economys cow population? Multiple Choice Question Therefore, the $250 is a payment that flows from a household to a firm. goods, means this model is generaly useless. For example, under combination D, Jacques spends 2 hours producing trucks and 6 hours producing balls. C) Sandwich constructive feedback between positive comments. Without a bailout of severely distressed financial firms, the economy will experience a deep recession. keep. Macroeconomics. . Before he bought the new tool, he could have produced one truck and 19 balls, so (1, 19) was a point on his initial PPF. The government should force doctors to encourage women aged 60 to 69 to be screened for breast cancer. The basic Economic problem is plethora realization scarcity profusion, Suppose an economy produces two goods: food and machines. 8 This could be a flow of dollars, inputs, or outputs. A Suppose Japan produces only two goods: corn and laptops. When the aspirin is provided to Alyssa (a household), the aspirin is an output that flows from a firm to a household. How should you approach Kurt regarding his work? an; an Suppose Teresa earns $750 per week working as work as a flight attendant for Flyaway Airlines. A) Set clear expectations for each team member, with SMART goals. FACTOR \text{Machine setups} \ldots\ldots\ldots & \text{500 setups} & \text{300 setups}\\ Since this change involves producing 3 fewer balls per day (1916=31916=3), the opportunity cost of producing the second truck per day is 3 balls per day. In order to construct such a model, an economist would need real life data regarding countries that, Scientists, of all types, make assumptions in their models to simplify the complex world they are, View The purpose of economic models is not exactly to portray complex reality, but to produce insights into how it works. 4. In contrast, disagreement due to differences in values reflect differing assessments on fairness or equity. Because point F is on Japan's production possibilities frontier, you can see that if Japan is producing 41 million laptops, it can produce at most 41 million bushels of corn. Using your answers to part a, identifypoints A, B, C, and D on your graph.c. The following diagram presents a circular-flow model of a simple economy. 4.9 (13 reviews) The following diagram presents a circular-flow model of a simple economy. The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. (D)b. Graph the production possibilities frontier for thiseconomy. Which of the elements of this scenario represent a flow from a firm to a household? Circular Flow Diagram Economic models The following diagram presents a circular-flow model of a simple economy. a. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Which of the following is a normative statement? Macroeconomics is the study of factors that affect the entire economy. 25 shares of WUF stock, c. Which of the following is true regarding exchange rates? The effect of a cigarette tax on the quantity of cigarettes sold MICRO e to acknowledge Resources are scarce in relation to peoples wants The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists demonstrate key economic concepts. Direction: Plot the Production Possibilities Frontier of the below-data with good X on the horizontal axis and good Y on the vertical axis. Studying more hours leads to an increase in your GPA. Bright Day Company produces two beverages, Hi-Voltage and EasySlim. C) Have regularly scheduled performance reviews. a. In this case, while much of the practical application of the production possibilities frontier (PPF) model is lost when only two goods are allowed, many key insights can more easily be demonstrated due to the simplicity of the model. This PPF is not an economic model. 9th - 12th grade. She uses $9 to order a mojito cocktail at Little Havana. Identify the partsof the model that correspond to the flow of goodsand services and the flow of dollars for each of thefollowing activities.a. For example, two economists chosen at random are most likely to agree that employers should not be restricted from outsourcing work to foreign nations. True Scientists of all types make assumptions in their models to simplify the complex world they are trying, to describe. Points located inside the production possibilities frontier, such as A and B, represent inefficient output combinations. POS The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Because I don't. The following diagram shows its current production possibilities frontier for corn, an agricultural good, and industrial robots, a capital good. Yoko can buy a chocolate bar, a can of drink and a packet of crisps. 100 Because of the improvement in soil quality, more bushels of barley can be produced on any given amount of land; however, there is no reason to think that the maximum amount of cars that can be produced would change. breakfast at Dinah's Diner. How do you suppose employment differs in the two cases? 4/2 = 2 pizza You know the difficulty of remote team members forming bonds with each other. itive comment between constructive feedback. The assumptions behind the economic order quantity (EOQ) model include all of the following EXCEPT: A. a constant rate of demand. Households earn their income when firms purchase or rent these factors of production to use them to produce goods and services. The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts. which is trading at $50 per share. A) Sandwich a pos A: Economics is a social science that discusses human behavior regarding their unlimited wants in terms, A: Since you have asked multiple questions, we will solve the first question (3 sub parts) for you. assumption that still allows economists to demonstrate key economic concepts. In order to construct such a model, an economist would need real life data regarding countries that only produce two goods. Which of the following is TRUE regarding the economic order quantity (EOQ) model? The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists demonstrate key economic concepts. POB 5.01 DRAFT. Identify key aspects of international trade. You decide to start each meeting with a few minutes to say, "I'd lik Jacques: I think a switch from the income tax to a consumption tax would bring growth in living standards. d. Chocolate bar Each works 10 hours a day and can produce two services: mowing lawns and washing cars.In an hour, Larry can either mow one lawn or washone car; Moe can either mow one lawn or wash twocars; and Curly can either mow two lawns or washone car.a. These resources could be used to produce more food. Which of the following is true regarding this economic model? B. a fixed ordering cost per year. When the Current Account and the Capital Account are added together. Considers the economy from the consumer's point of view d. Customers demand products If Hi-Voltage sells for $3.75 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? Hence, as Jacques increases his production of trucks, his opportunity cost of producing more trucks increases. Firms, in turn, earn revenue when households buy goods and services. This site is using cookies under cookie policy . Jacques: Indeed, it's gotten crazy! Positive statements may be false (for example, "You are the king of Spain"), and normative statements may reflect the value judgments of a large majority of people (for example, "It is wrong to kill innocent children"). A consumer's optimal choice when buying a flat-screen TV MICRO. . POS. , 1. Course Hero is not sponsored or endorsed by any college or university. c. Nothing is free O The fact that there are only two goods produced in this theoretical economy is a simplifying assumption thut stl alows economists to The disagreement between these economists is most likely due to differences in scientific judgements. Jack owns a convertible bond with a $1,000 face value that can be exchanged for The minimum wage should be raised to $15 per hour. households are sellers, and firms are buyers.b. 27 an; an In the circular-flow model of an economy, households own all the factors of production. Though, the results of this curve are applicable to real world goods, where the nature and number of goods both are complex. The new tool causes Jacques's PPF to pivot to the right. NORM 6. A Kyoko: You really think households would change their saving behavior enough in response to this to make a difference?
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