Pearson eText Microeconomics -- Access Card
7th Edition
ISBN: 9780136850045
Author: Hubbard, Glenn, O'Brien, Anthony
Publisher: PEARSON
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Chapter 2, Problem 2.3.11PA
To determine
Self-interest.
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Microeconomics > Page 2 of 5
2. Draw and explain a production possibilities frontier for an economy that produces
milk and cookies. What happens to this frontier if disease kills half of the economy's
cows?
3. Consider the following events: Scientists reveal that consumption of oranges.
decreases the risk of diabetes, and at the same time, farmers use a new fertilizer that
makes orange trees more productive. Illustrate and explain what effect these
changes have on the equilibrium price and quantity of oranges.
4. Imagine that you are a nonsmoker sharing a room with a smoker. According to
the Coase theorem, what determines whether your roommate smokes in the room?
Is this outcome efficient? How do you and your roommate reach this solution?
5. Charlie loves watching Teletubbies on his local public TV station, but he never
sends any money to support the station during its fundraising drives.
(a) What name do economists have for people like Charlie?
(b) How can the government…
Which point(s) are efficient? Briefly explain why.
B
Points A, B, C, and D because they are attainable.
Points B, C, and D because this is where maximum output is produced with available resources.
Point A because it is inside the production possibilities frontier.
Point E because it is where the most capital and consumption goods combined are produced.
A
D
Point B because it is where the most resources are used to produce capital goods.
Which point(s) are inefficient? Briefly explain why.
PPF
O A. Points B, C, and D because they are on the production possibilities frontier.
O B. Points B, C, D, and E because they are unattainable.
Consumption goods
O C. Points A, B, C, and D because they are attainable.
O D. Point E because it is unattainable.
OE. Point A because production there is not using all available resources.
At which point is the country's future growth rate likely to be the highest? Briefly explain why.
O A. Point E because it is where the production possibilities frontier…
Chapter 2 Solutions
Pearson eText Microeconomics -- Access Card
Ch. 2 - Prob. 1TCCh. 2 - Prob. 2TCCh. 2 - Prob. 2.1.1RQCh. 2 - Prob. 2.1.2RQCh. 2 - Prob. 2.1.3RQCh. 2 - Prob. 2.1.4PACh. 2 - Prob. 2.1.5PACh. 2 - Prob. 2.1.6PACh. 2 - Prob. 2.1.7PACh. 2 - Prob. 2.1.8PA
Ch. 2 - Prob. 2.1.9PACh. 2 - Prob. 2.1.10PACh. 2 - Prob. 2.1.11PACh. 2 - Prob. 2.1.12PACh. 2 - Prob. 2.1.13PACh. 2 - Prob. 2.1.14PACh. 2 - Prob. 2.2.1RQCh. 2 - Prob. 2.2.2RQCh. 2 - Prob. 2.2.3PACh. 2 - Prob. 2.2.4PACh. 2 - Prob. 2.2.5PACh. 2 - Prob. 2.2.6PACh. 2 - Prob. 2.2.7PACh. 2 - Prob. 2.2.8PACh. 2 - Prob. 2.2.9PACh. 2 - Prob. 2.2.10PACh. 2 - Prob. 2.2.11PACh. 2 - Prob. 2.2.12PACh. 2 - Prob. 2.2.13PACh. 2 - Prob. 2.2.14PACh. 2 - Prob. 2.2.15PACh. 2 - Prob. 2.3.1RQCh. 2 - Prob. 2.3.2RQCh. 2 - Prob. 2.3.3RQCh. 2 - Prob. 2.3.4RQCh. 2 - Prob. 2.3.5RQCh. 2 - Prob. 2.3.6RQCh. 2 - Prob. 2.3.7PACh. 2 - Prob. 2.3.8PACh. 2 - Prob. 2.3.9PACh. 2 - Prob. 2.3.10PACh. 2 - Prob. 2.3.11PACh. 2 - Prob. 2.3.12PACh. 2 - Prob. 2.3.13PACh. 2 - Prob. 2.3.14PACh. 2 - Prob. 2.3.15PACh. 2 - Prob. 2.3.16PA
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