Chapter 15, Problem 1TY

During World War II, auto production was cut drastically.  The resources available could be used to produce tanks or passenger cars.  The resources could be used in the following ways. Number of Tanks (1000’s)     Number of Cars (1000’s) A. 0 150 B. 10 145 C. 20 130 D. 30 100 E. 40 60 F. 50 0 d)Where is the opportunity cost greater when giving up cars for tanks - moving from point B to C or from E toF? State the numbers. e) Where is the opportunity cost greater when giving up tanks for cars - moving from Point E to D or from point C to B?  State the numbers

Using Production Possibilities Curve (PPC), identify the trade-off between public and private goods. What is the opportunity cost if more allocation is needed for the provision of public goods?

Adam Smith favors a policy of laissez-faire in managing economic activities. Why?   Economics deals with the efficient use of resources. Why?   Marginal analysis produces more optimal outcomes when working with scarce resources. How?   It is possible for everyone to enjoy a comparative advantage in a task of their choosing. Why?   Larger marketplaces tend to generate more wealth than smaller marketplaces. Why?     Calculate the opportunity cost of producing the first 10 and the last 10 missiles. Discuss if the frontier exhibits increasing opportunity costs       Missiles vs. Milk (millions of gallons)   0                    40 10                  30 20                  20 30                  10 40                    0   -Using the supply and demand model, discuss what would happen to the market price if…   Incomes increase   Technology improves   -When ASU increased its tuition from $200 per credit to $250 per credit the enrollment declined from 50,000 to 40,000. Explain…

Suppose that your neighbor has three choices of activity for Saturday morning: going hiking (valued at $20), going apple-picking (valued at $30), and going kayaking (valued at $10).  If your neighbor chooses to go apple-picking, what is the opportunity cost?

You have the evening free. You have a choice between going to a concert with a friend or studying economics for three hours. If you go to the concert, you will spend $35.00 on a ticket and $15.00 on snacks. If you choose to study economics for three hours, you will raise your exam grade by 20 points.   From the above information, what is your opportunity cost of going to the concert?

Evidence accumulates that the use of fertilizers,  which increases agricultural production greatly, damages water quality. In what way would the production possibilities curve reflect scarcity,  choice and opportunity cost?

You already have a ticket to a club tomorrow, which costs you $30 and give you the enjoyment of $35. A friend invites you to go kayaking. Rental kayak fees would cost you $25, and you think you’d get $25 worth of enjoyment. Your club ticket is nonrefundable. What is your opportunity cost (in dollars) of kayaking?

What is a scenario that demonstrates the concepts of scarcity, choice, and opportunity cost in the utilization of economic resources.

Country X has 50 workers at their disposal to produce both Guns and Aluminum Foil. It takes 5 workers to produce 10 Guns while 2 workers produce 10 boxes of aluminum foil. Calculate the maximum amount of both commodities that can be produced by country X. Construct the table to show the different combinations that are available when country X uses all its resources. Draw Country X P.P.C. What is the opportunity cost ratio for country X?