Which of the following is the best example of "what goods and services should be produced?" the production of army helicopters versus the production of new commercial jet aircraft O the manufacturing of computer workstations in Hong Kong or in Germany O the use of a capital intensive versus a labor intensive process of manufacturing textiles O the leasing versus the purchasing of new capital equipment

Which of the following is the best example of "what goods and services should be produced?" the production of army helicopters versus the production of new commercial jet aircraft O the manufacturing of computer workstations in Hong Kong or in Germany O the use of a capital intensive versus a labor intensive process of manufacturing textiles O the leasing versus the purchasing of new capital equipment

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter1: Introducing The Economic Way Of Thinking

Section: Chapter Questions

Problem 2SQ

See similar textbooks

Similar questions

The key to efficient resource allocation is shifting resources from low-productivity to high-productivity uses. In view of the high and expanding physical productivity of agricultural resources, explain why many economists want to divert additional resources from farming to achieve allocative efficiency.
A clothing company can use one of the following four production processes to produce 5,000 garments per month. Which production process is the most productively efficient? One that involves 20 workers and 20 machines One that involves 30 workers and 50 machines One that involves 30 workers and 20 machines One that involves 20 workers and 50 machines
Resources are allocated among industries in response to signals sent by both product and resources ...................... . These also indicate which resources would be combined in what way, in the production of a good or service, in order to ..................... production costs, thereby using society's scarce resources most ...................... . A person can increase his income by producing .................... output or by specializing in the production of something for which society is willing to pay a higher price (relative to cost). The ........................ of goods, services and resources are not determined by some government agency, but by countless decisions of individuals about which goods and services to produce and buy.
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they dont like the taste. From an economic perspective, the company should keep the hamburger on the menu because they have spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.
Your health club offers you “free” parking and unlimited use of its facilities seven days a week if you buy an annual membership for $3,650, to be paid at the time the membership is taken out. Otherwise, you buy daily passes for $10 per day for the use of the facilities, plus pay for your parking. Is your parking truly “free” if you buy the annual membership? Explain. A newspaper report states that chocolate production is failing to keep up with worldwide consumption and could fall behind by 2 million metric tons annually by 2030. Does this create an excess demand or excess supply situation? Explain how it will affect the price of chocolates in the future. The news report further goes on and states that adverse weather and fungal disease are partly to blame. Explain how that affects the supply curve. How will your answer in b. above change if innovation of disease resistant and higher yielding cocoa trees replace their traditional counterparts? Read the 2018 article…
The question is simple. Consider an economy with just one technique for production of each good: Good Food Cloth Labor per unit output 1 1 Land per unit output 2 1 Capital per unit output 0.8 0.9 Q1. There are 100 units of capital available. Write and draw the production possibility possiblity curve in this case. Label all the important points clearly.
Which of the following statements on dynamic efficiency is correct?a. Dynamic efficiency is the efficient use of resources when it is not necessary toinclude considerations.b. It compares today’s value to the future value of extracting a resource.c. The future value of a resource does not need to be discounted in order to compareit the value of today’s resource.d. The value of today’s resource needs to be discounted in order to compare its valueto the future value of a resource
Ginny and Lucia are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Ginny takes 5 hours to brew a gallon of root beer and 3 hours to make a pizza. Lucia takes 8 hours to brew a gallon of root beer and 4 hours to make a pizza. 1. Ginny's opportunity cost of making a pizza is (1/2 gallon, 2 gallons, 3/5 gallon, or 1 2/3 gallons) of root beer, and Lucia's opportunity cost of making a pizza is (1/2 gallon, 2 gallons, 3/5 gallons, or 1 2/3 gallons) of root beer. 2. (Lucia or Ginny) has an absolute advantage in making pizza, and (Ginny or Lucia) has a comparative advantage in making pizza. 3. If Ginny and Lucia trade foods with each other, (Lucia or Ginny) will trade away pizza in exchange for root beer. 4. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates…
Are goods developed by the military like roads, factories and new technology for communications an example of land, labour or capital? Explain your answer
Suppose that a natural disaster destroyed a significant amount of farmland in the Midwest. Provide examples of how this flooding affects the marginal productivity and price of inputs of the remaining land, labor, and capital.
Which of the following statements does NOT describe opportunity costs? A. The interest income on uninvested funds that you could have earned, but didn't. B. The income a person could have earned at their job instead of waiting in line to purchase the newest electronic device. C. The rent a landlord did NOT earn on an apartment that was empty for the month. D. The value or satisfaction a consumer gets from a product or service.
In terms of Adam Smith’s concept of the invisible hand, an efficient overallallocation of resources is likely to result from:(2)(1) The behaviour of public-spirited people, who consider the benefits theiractions will have on others;(2) The behaviour of self-interested individuals striving to maximise their ownwell-being;(3) The regulation of markets by economic planners;(4) The operation of command rather than market economies.