Question 4 of 10 Which of the following best explains why the game of economics is about setting goals as much as it is about making allocation decisions? O A. It's unnecessary to have a goal to make allocation decisions. B. There are different and incompatible economic goals. O C. Consumers need goals in order to know what goods and services to buy. OD. Making allocation decisions requires information and resources. SUBMIT

Question 4 of 10 Which of the following best explains why the game of economics is about setting goals as much as it is about making allocation decisions? O A. It's unnecessary to have a goal to make allocation decisions. B. There are different and incompatible economic goals. O C. Consumers need goals in order to know what goods and services to buy. OD. Making allocation decisions requires information and resources. SUBMIT

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 3PA

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Sue Tom Good A 10 4 Select one: Good B 15 5 As shown in the table above, Sue and Tom each can produce two different types of goods. For Sue, if she only produces Good A, then she can produce 10 units of Good A per day. If she only produces Good B, then she can produce 15 units of Good B per day. For Tom, if he only produces Good A, then she can produce 4 units of Good A per day. If she only produces Good B, then she can produce 5 units of Good B per day. Which of the following statement is correct about comparative advantage? O a. Tom has a comparative advantage over Sue in the production of Good A. Sue has a comparative advantage over Tom in the production of Good B O b. Tom has a comparative advantage over Sue in both tasks O c. Sue has a comparative advantage over Tom in both tasks O d. Sue has a comparative advantage over Tom in the production of Good A. Tom has a comparative advantage over Sue in the production of Good B
Use the Fundamental Theorem of Exchange and draw Edgeworth Box diagrams to show the conditions necessary for an 'efficient' allocation of two goods between two individuals. Use this model o evaluate the statement: "If two individuals have identical endowments of both goods there are no possible gains from trade". Hint: you need to develop your explanation of the theory and the efficiency conditions step-by-step. You need to draw several diagrams showing Edgeworth Box (rather than drawing one complicated crowded diagram).
Read the following passage that describes why some consumers clip coupons while others don't. Then answer the question that follows. V THE ECONOMIC RATIONALE BEHIND COUPON CLIPPING, BY THE APLIA ECONOMICS CONTENT TEAM If coupon clipping is so rewarding, why doesn't everyone do it? According to basic economic theory, the number one reason is that coupon clipping isn't actually free. Sure, it doesn't explicitly cost you money out of your pocket, but it does cost you time to scan newspapers, magazines, and the Internet for savings that sometimes seem insignificant. Economists refer to this as the opportunity cost of clipping coupons. For example, an hour spent clipping coupons means an hour less to spend earning income, enjoying leisure time, or sleeping. For those who have fewer high-value alternatives competing for their time, such as stay-at-home parents or retired senior citizens, coupon clipping may be time well spent. According to the Wall Street Journal (Source: "Doing the Math on…
Explain why an economy in which airlines charge different passengers different prices for the same flight will not have exchange efficiency. b. Going back to our two good (Apples, Oranges), two person (Ed, Mary) economy, suppose that at a given allocation, Ed’s MRSAO is 3 and Mary’s MRSAO is 1. Use proof by contradiction to show that this allocation is not exchange efficient. Identify a trade that will increase the utility of Ed and Mary. Explain. Show this graphically (with indifference curves). Going back to our two good (Apples, Oranges), two person (Ed, Mary) economy, suppose that at a given allocation, Ed’s MRSAO is 3 and Mary’s MRSAO is 1. Use proof by contradiction to show that this allocation is not exchange efficient. Identify a trade that will increase the utility of Ed and Mary. Explain. Show this graphically (with indifference curves).
1. Scarcity, opportunity cost, and marginakanalysis Kate is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Kate has only 20 hours this week that she can devote to training. Each hour she spends swimming is an hour that she can't spend biking or running. Which basic principle of individual choice do these statements best illustrate? O Kate has an incentive to spend more time on swimming than on biking or running. O People usually exploit opportunities to make themselves better off. O People face trade-offs. O Kate can use time most efficiently by spending the same amounts of time on swimming, biking, and running.
4) The fact that wants cannot be fully satisfied with available resources reflects the definition of A) the what tradeoff. B) scarcity. C) the big tradeoff. D) for whom to produce. 5) Suppose the Gallo sisters, Ernestine and Julia, were not on speaking terms with one another. They each raised grapes and peanuts. Ernestine could increase her output of grapes by one bushel if she reduced her output of peanuts by two bushels and Julia could increase her output of grapes by one bushel if she reduced her output of peanuts by four bushels. According to this information, Ernestine has: A) a comparative advantage in the production of grapes. B) a comparative advantage in the production of both goods. C) a comparative advantage in the production of peanuts. D) an absolute advantage in the production of peanuts 6) Factors of production are grouped into four categories: A) land, labor, capital, entrepreneurship B) land, labor, capital, money C) land, capital, money, entrepreneurship D) labor,…
"Uber eats usually has a promotion in which, if a customer orders more than $30 worth of food at a specific restaurant, the customer will get a discount of 15% off their order. "Answer the following questions concisely:1. Before this promotion starts, in general terms, what do a customer's marginal cost and marginal benefit curves look like? (eg Upward sloping, downward sloping, horizontal?). Be clear about what is being measured. 2. What is Uber's goal with this policy?3. How does this affect an average customer's marginal cost and marginal benefit curves, and their intersection? 4. What is a plausible secondary effect that is likely to happen that is not Uber's goal?
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?)
6. The interaction of individual choices Immediately after an ice storm brought down power lines throughout the region, hardware stores were sold out of batteries and flashlights. However, within a couple of days, special deliveries brought in extra batteries and flashlights, and everyone who wanted to buy a flashlight or batteries was able to do so. Which of the following principles of economic interaction best describes this scenario? O Markets allocate goods effectively. O All costs are opportunity costs. O When markets do not achieve efficiency, government intervention can improve overall welfare. There are gains from trade.
Consider a two-agent two-good barter economy. Agent 1 only cares about good 1, and agent 2only cares about good 2. There is only 1 unit of good 1, and 2 units of good 2 in the economy,which is distributed equally between the agents while agent 1 owns the only unit of good 1 inthe economy.a. Compute and explain the Pareto optimal allocations.b. Compute and explain the equilibrium prices and allocations.c. How would your answers to parts a and b change if agent 1 shared half of his good 1 withagent 2? Discuss.
Option Baseball Bats Tennis Racquets A 20 2 19 C 4 18 6. 16 8 10 F 10 The table above shows the production possibilities frontier for a company producing only 2 goods: baseball bats and tennis racquets. Suppose the company is currently producing 4 bats and 10 racquets all of which have been ordered by customers. If customer John puts in an order for 4 bats, so that the total number of bats to produce would then be 8, what is be the opportunity cost of filling John's order? 8 racquets 10 racquets nothing 18 racquets
Nettie can produce either 8 cupcakes or 4 hamburgers. Becky can produce either 4 cupcakes or 8 hamburgers. Suppose that Nettie and Becky each specialize in the production of the good for which they have a comparative advantage and decide to trade. The terms of trade are 1 cupcake for 1 hamburger. After trade, how many hamburgers will Nettie consume if Becky consumes 4 hamburgers? How many cupcakes will Becky consume if Nettie consumes 4 cupcakes? Multiple Choice Nettie consumes 4 hamburgers. Becky consumes 4 cupcakes Nettie consumes 0 hamburgers, Becky consumes O cupcakes