Use the scenario to answer the following questions Natasha can produce either 5,000 pounds of cheese or 20 houses per year. Jameson can produce either 5,000 pounds of cheese or 10 houses per year. Jameson's opportunity cost of producing one house is Oa. 1/20 of a Ob. 20 Oc. 250 Od. 1/250 of a Oe. 500 pound(s) of cheese.
Q: Discuss the impact of each of the following on the production possibilities frontier and illustrate…
A: a) Unemployment refers to when all the available resources in the economy are not utilized…
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A: Production possibility curve is a frontier which shows combinations of two goods which an economy or…
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A: Overview Let's take a closer look at the frontier of manufacturing possibilities and the curve's…
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A: Opportunity costs basically refers to the the potential advantages that a person, investment, or…
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A: The opportunity cost refers to the given up benefits to obtain some other benefits.
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Q: QUESTION 2 Consider the Production possibility frontier model. Efficiency means that the economy…
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Q: D Bread 10. Refer to Figure 1. An economy is operating at full employment, and then workers in the…
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A: Opportunity Cost is defined as the cost of the next best alternative or the cost that is forgone.…
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A: Hi! Thank you for the question but as per the guidelines, we answer only up to three sub-parts.…
Q: For the question below use the following figures which illustrate the production possibilities…
A: The value of the next-best option after a selection is made is known as the opportunity cost. It…
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A: Answer- Need to find- Explain the following two statements: “Education increases human capital and…
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A: Opportunity cost refers to the loss incurred by giving up next best alternative while making a…
Q: a. For each type of worker, calculate their opportunity cost of producing a bookshelf (in terms of…
A: Opportunity cost(OC) of a product is the amount of another product that is forgone to produce the…
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A: 12) Out of the given option, business owner is not a primary factor of production. Reason:- There…
Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…
A: Comparative advantage basically refers to an economy's ability to produce a certain item or service…
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Q: Sam can brew 5 gallons of root beer in an hour or he can make 4 pizzas in an hour. Ben can brew 7…
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Q: If the production possibilities frontier can be expressed as 4X2 + Y2 =16, then the point X=√3…
A: Given, PPF: 4X2+ Y2 = 16 X = √3, Y = 2
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A: 1) Given below is the PPC of Stromboli, which shows the combination of two goods being produced ie…
Q: Below is a production possibilities table for capital goods and consumer goods. GOODS PRODUCED…
A: ALTERNATIVES Consumer Capital A 40 0 B 36 3 C 28.00 6 D 16.00 9 E 0.00 12
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Q: Elaborate on your opportunity costs, if you decide to stop studying now and start working.
A: Opportunity cost is the next best alternative foregone.
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Q: What should I assume when I am asked to make a Production Possibilities Curve?
A: The production possibility curve is the curve that shows different combinations of goods that can be…
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A: Melinda’s opportunity cost of designing one web page = What is sacrificed / What is gained
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A: production possibility curve is the comparison of efficiency between production of two goods or…
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A: Opportunity cost is the cost of loosing one opportunity for gaining the best other one or we can say…
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Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…
A: The next best option is frequently referred to as the opportunity cost. It's also known as the…
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A: Given, Student Pencils Pens A 100 400 B 150 200 C 350 50
Q: Use the following table to answer the question below. Dave's Production Possibilities Schedule…
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- Think about a country where most economic production comes from factories that create air pollution. What could be a possible trade-off from lower levels of pollution? Group of answer choices lower incomes more factory jobs heavily polluted air higher incomes Jewell attends a wedding reception where dinner is served. For her entrée, she has the option of steak, chicken, or pasta. If she chooses the pasta, then her opportunity cost is Group of answer choices the steak. the chicken and the steak. the chicken. either the chicken or the steak, whichever would have been her second choice to the pasta. Judy spent eight hours studying for an exam. Normally, she would have spent that time watching TV instead of studying. She figures she could have made a "B" after only studying four hours, but she really wanted an "A." What is Judy's marginal cost in terms of TV viewing to improve her grade from a "B" to an "A"? Group of answer choices $8 four hours eight hours…. Both Wisconsin and Illinois border Lake Michigan. The lake is becoming polluted and both states are deciding whether or not to clean it. If Wisconsin decides to clean the lake it will cost 1200 and generate social benefits of 1500 – however, Wisconsin will receive only 1100 of those social benefits while neighbor Illinois will receive the other 400. If Illinois cleans the lake, it will cost them 700 and generate social benefits of 900 – however, Illinois will receive only 600 of those benefits, Wisconsin will receive the remaining 300. If a state does not clean the lake, it experiences a cost of $0. If both states clean the lake, the payoffs will be A. Wisconsin gains 100, Illinois gains 200B. Wisconsin gains 200, Illinois gains 300C. Wisconsin gains 200, Illinois loses 100D. Wisconsin gains 100, Illinois loses 100McCammon and Mr. Bean are neighbors. Ms. McCammon hasn't painted her house in years. Mr. Bean wants to sell his house and retire to Florida. Bean can sell his house for $10,000 more if McCammon paints her house because the neighborhood will look more attractive to prospective buyers. Assume the total cost of having a house painted is $1,000 and that McCammon herself derives no benefit from having her house painted. Also assume that Ms. McCammon has the property rights to her house; McCammon is the one to decide whether her house is painted. a. State the Coase Theorem. b. What is the efficient market outcome? That is, should McCammon have her house painted? c. What is the maximum amount that Bean be willing to pay McCammon to have her paint her house? d. What is the minimum amount that McCammon must be paid in order for her to be willing to paint her house
- Suppose Fischer Pond is a common-property resource—anyone can fish without having to pay for access. Locke Lake is privately owned—people who want to fish must purchase one of a limited number of permits from the lake's owner each season. According to the incentives that private ownership creates, which of the following would you expect to happen? Check all that apply. The owner of Locke Lake is likely to keep the lake clean and unpolluted. The owner of Locke Lake is likely to limit the number of fishing permits in order to maintain a plentiful stock of fish. Fischer Pond is less likely to experience a dwindling stock of fish each season.Four individuals who live around a large lake are hosting separate New Year’s Eve parties, and all are considering purchasing aerial fireworks; any fireworks purchased will be set off over the lake, and thus will be visible to everyone at all of the parties. Kevin’s marginal benefit from having an additional package of fireworks (which includes the benefit to himself and all of his guests) is given by MBK = 300 – 5Q, Jen’s is given by MBJ = 600 – 10Q, Laura’s is given by MBL = 900 – 15Q, and Emily’s is given by MBE = 1,200 – 20Q, where Q is the total number of packages of fireworks set off at all parties. Each package of fireworks costs $800 (i.e., MC = 800 A)Assuming there are no other relevant costs or benefits, what is the efficient quantity of fireworks? B)How many packages of fireworks will actually be set off if it is left to the free market? (Assume that these individuals each care only about their own benefits [including benefits to their guests] from the fireworks and are…Part 1. Imagine you have a diesel-powered car, and you can buy either diesel or biodiesel fuel (which is possible in some parts of the US). The cost of biodiesel is $38/GJ, and the biodiesel causes 22 kg CO2 emissions per GJ over its lifetime. The diesel costs $30/GJ and causes 88 kg CO2 emissions per GJ over its lifetime (4 times more!!). Part 1: What is the cost of mitigation of choosing biodiesel? Part 2. What carbon tax would be required to make the biodiesel cost the same as the diesel?
- The discovery of a product or process is called a) invention b) innovation c) investment Mitch, the president of a company that makes electronic devices, borrows a large sum of money from the local bank to purchase machinery to make its latest line of smartphones. Smartphone technology is expected to ultimately make cell phones without PC-like functionality obsolete. as depicted in the above scenario, which of the following is an example of creative destruction ? a) the purchase of machinery used to make smartphones b) the new machinery used to make smartphones c) traditional cell phones exiting the market because of the introduction of smartphonesEnvironmentalists and economists often find themselves at odds with each other. The conflict between the romantics and the rationalists surfaced again in the debate over air-quality standards set under the Clean Air Act of 1990. Under the law, the Environmental Protection Agency (EPA) must establish standards that promote public health. The EPA’s cost-benefit analysis assigns a value for each life saved of $4.8 million. Is $4.8 million a reasonable value to place on a life? What questions would economists consider relevant in determining the value of a life? How would environmentalists react to the questions economists ask?Some economists claim that grinding poverty and impatience impel people to strive for immediate gain, forgetting long-term environmental sustainability. You are an Environmental Economist in the Ministry of the Environment and Beautification in your local country, and you are tasked with holding a team meeting and the Chief Economist has given the following guidelines: II. two critiques (most recent) of the environmental Kuznets Curve. III. the importance of inter-generational equity and optimal depletion with regards to non-renewable resources.
- What does a point inside the production possibility frontier represent?Consider 3 individuals in a small town: Alice, Bianca, and Claire. There is an NGO who can provide an art museum for their town with the help of local contributions. The higher the contributions, the larger the art collection of the museum. Their respective direct marginal benefits from N works of art are: MBA=7-N, MBB=7-½N, MBC=23-½N2, and their respective marginal costs are: MCA=2, MCB=3, MBC=5. Find each person’s optimal number of art works. Who will contribute and how many works of art will be provided?The depletion of the ozone layer is attributed to the emission of Chlorofluorocarbons (CFCs). Before 1990, the use of coolants in refrigerators such as Freon released a significant amount of CFCs. Given the above scenario, is the equilibrium level of refrigerators produced prior to 1990 in the market “too much” or “too little” compared to the social optimum? Explain why this occurs. Support your answer by drawing the private and social, marginal cost and marginal benefit curves for refrigerators. Identify the deadweight loss if any exists. Identify a regulation that the government can use to achieve the socially optimal level of refrigerators. Explain how this regulation works. Explain how the Coase theorem could hypothetically work to achieve the optimal level of CFCs emissions in this context. Enumerate at least one major drawback that hinders the creation of a market for CFCs without any third party regulators in the real world. Assume that the marginal savings for refrigerator…