ECONOMICS:PRIN.+POLICY-MINDTAP (1 TERM)
14th Edition
ISBN: 9781337912396
Author: Baumol
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 4DQ
To determine
The three co-ordination tasks of an economy.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Assume that Country A has an efficiency in output market. However, efficiency in the use of input production is not. Using graph(s), explain how the economy of Country A will adjust to achieve a desired equilibrium. What (is) are the condition(s) to achieve this equilibrium?
The information regarding these questions are in the image:
(a) Calculate the opportunity cost of producing one additional unit of good x in terms of units of good y in Home and Foreign.
(b) Derive the production possibilities frontier (PPF) for Home and Foreign and plot it in a graph with good x in the horizontal axis and good y in the vertical axis.
(c) Determine the equilibrium price of good x (setting the price of good y as 1) that prevails at Home and Foreign under autarky – that is, when they do not trade with each other. Explain why any other price could not be the equilibrium price in autarky.
(d) Determine the optimal consumption and production at Home and Foreign under autarky. Depict this situation in a graph that includes each country’s PPF and indifference curves for the representative consumer.
(e) Assume that Home and Foreign open to trade with each other. Explain how is the pattern of trade (which good will each country export and import) determined
(f) Suppose that…
Which of these situations describe an equilibrium, and which does not? If not, what would an equilibrium look
like? Remember that the definition of equilibrium means, in part, that there is no incentive or push/pull to
change from the current described state.
Many people regularly commute from the suburbs to the downtown area of a local city. Due to
traffic congestion, the trip takes 30 minutes when you travel by highway, and15 when you go by side
streets.
There are 2 gas stations at the intersection of Main and Vine. One charges $3.75 for regular and the
other charges $3.25. Customers can get gas immediately at the first station, but must wait in long lines
at the second.
Every student who enrolls in econ principles must also attend a weekly tutorial. This semester, 2
sections are offered, which meet at the same time, in adjoining classrooms and are taught by equally
competent and liked instructors. Section A is overcrowded with people sitting on the floor and unable
to see the board…
Chapter 11 Solutions
ECONOMICS:PRIN.+POLICY-MINDTAP (1 TERM)
Knowledge Booster
Similar questions
- Assignment 2: Problem Solving When faced with a problem, what do you do to solve it? This assignment asks you to apply a six-step to problem solving process to a specific problem scenario. You will write a paper that presents a synthesis of your ideas about solving the problem using this systematic approach. As Voltaire said, “No problem can withstand the assault of sustained thinking.” Choose one (1) of the problem scenarios as a topic choice for your paper (Note: Your professor must approve your topic choice before you begin work on the assignment.) Scenario 1: You have worked at your company for eleven (11) years. You have returned to college to earn a Bachelor’s degree in order to increase your chances for a promotion. You are nearly finished with your degree, when a supervisor’s position in a competing company becomes available in another state. The start date is in two (2) weeks, during your final exam period for your courses. The position offers…arrow_forwardSuppose the production possibility frontier for cheese-burgers (C) and milkshakes (M) is given by C + 2M = 600 a. Show working and graph this frontier. b. Assuming that people prefer to eat two cheeseburgers with every milkshake, how much of each product will be produced? show working and indicate this point on the graph. c. Given that this fast-food economy is operating efficiently, what price ratio (PC/PM) must prevail? show workingarrow_forward12)Which of the following best illustrates the economic way of thinking? * a)The ability to use cartographic techniques to describe the natural and human world in maps. b)The science of predicting fish populations based on environmental conditions, population, dynamics and commercial harvest rates c)The capacity to critically evaluate art and theatre. d)The ability to look at an event, such as a cold freeze that damages the orange crop, and predict how it will affect prices and marketsarrow_forward
- Your answer has to be more than five(5) sentences for each question based on researched facts and logical analysis to earn the full credit. Q1) Discuss the differences between the constant opportunity cost and the increasing opportunity cost in terms of Production Possibility Curve. ie.) the shapes of PPC and the main assumption behind these two. Q2) Discuss the differences between macroeconomics and microeconomics. Q3) Compare "Change in Demand " with " Change in Quantity demanded" . Discuss causes and shape of curve. Q4) At what price does Shortage and Surplus occur ? Once a market has shortage and Surplus, then what happens to the market price? Q5) If an increase in Demand is larger than an increase in Supply, discuss equilibrium price and output sales.arrow_forward2) This MCQ from MICROECONOMICS course.arrow_forwardProblem 2. As in the lecture, consider an economy characterized by constant opportunity costs so that in order to produce one unit of good G (gelato), four units of good C (coke) need to be sacrified. (a) Draw the production possibility frontier (PPF). (b) Derive the national supply schedule analytically and show it graphically. (c) Assume that we are in an equilibrium where both goods are produced. Does demand influence the price or the relative quantities?arrow_forward
- Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to produce mangoes and coconuts as shown in the table below. (a) Which island has an absolute advantage in producing coconuts? Explain. (b) Which island has a comparative advantage in producing coconuts? Explain. (c) Assume Zeetopia and Freshland decide to specialize according to their comparative advantages and 1 ton of coconuts is exchanged for 1 ton of mangoes. Are specialization and trade under these terms beneficial to both Zeetopia and Freshland? Explain. (d) Assume the two islands experience constant opportunity costs in the production of the two products. Draw a correctly labeled graph illustrating…arrow_forwardInclude correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to produce mangoes and coconuts as shown in the table below. (a) Which island has an absolute advantage in producing coconuts? Explain. (b) Which island has a comparative advantage in producing coconuts? Explain.arrow_forwardQ) What are the four complementary social institutions required in economic coordination? Why are they necessary/important? Please answer this question early . Correctly explain but not copy paste .arrow_forward
- Do you think that the pure market economy in these circumstance of COVID 19 play an effective role in economy? Give four evidences from your point of view.arrow_forwardECONOMICS QUESTIONS 1d. Suppose your roommates notice that every time they leave a mess in the kitchen, you clean it up for them. How might this incentivize them to behave? What is this example an illustration of? 1e) Consider a newly discovered forest that has no regulations about what can be done with its trees. Can people be prevented from going into the forest and cutting down trees? Explain. 1f) Are the trees rival in consumption? What type of good are the trees? What would you predict to happen to this forest over time and why? What is one policy that might prevent your prediction from happening?arrow_forwardQuestion Fivea) An economic system is an ongoing process whereby people exchangematerial goods and personal services in support of an entire range of humaninterests. With concrete examples, discuss the importance of a morally soundeconomic system.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning