Econ 5 Quiz

1) Approximately three-fourths of the world's industrial production is concentrated in four regions. Which of the following is not one of these four regions?

Another issue is export. What proportion of the nation's output that is potentially exportable is in fact exported? One way to address this more narrow question is to begin with the domestic output of the goods-producing sectors of the economy, as measured by the value of final exports of goods, plus change in goods inventories,

Problem #1: Using either a graph or table (Refer to page 22 for help with graphs and tables) use two goods to construct a production possibilities curve. Clearly explain what a variety of different points on the curve mean. What would make the curve expand or contract? Why is efficiency lost at the extremes, as when substantially more of one good and very little of another is produced?

b. Trial and error in agriculture (Returns to scale). Best practices were learned and passed down. Returns to agriculture increased.

In Exhibit 2-19, the production possibilities curves for a country are shown for the years Year X and Year Y. Which of the following could have caused a shift for Year X to Year Y in production possibilities curves?

5. (TCO 1) If an economy is producing at a point inside a production possibilities curve, then

between the three countries. By the end of the 1900s there were 4,000 factories in

c) Suppose that an increase in the labor supply causes the price of labor to fall to $1.50 per unit, all other resource prices remaining unchanged. Which technique will the producer now choose? Explain. I need assistance with this question.

A. Assume that country A and country B decide to use half of the resources in the production of each good. Indicate the points of the maximum output of each good on the graphs for each country as point A under such resource use.

An increase in the exchange rate of the U.S. dollar relative to a trading partner can result from

This exercise illustrates how through using a decision tree, determination of an "optimal" production capacity option can be made from among several possible capacity options based on the provided probable market demand and expected costs/payoffs of events that influence the options.

2. At what level of demand (in pounds) per year would these two alternatives be equal?

5. How would you go about deciding the appropriate batch size for the Stonehaven factory? What factors would you consider? How do they interrelate? (You may wish to do some calculations, but concentrate on thinking conceptually.)

Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced. Moreover, there is a standing order of 10 units of product C each week.

Label these points B. (Look at the case of US and Japan’s export and import). (Each country will export what it specializes and import what it does not specialize)