Principles of Microeconomics California Edition 2nd Edition
2nd Edition
ISBN: 9780393622089
Author: Dirk Mateer, Lee Coppock
Publisher: W. W. Norton
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Question
Chapter 2, Problem 2SP
(a)
To determine
Graphical representation of PPF (
(b)
To determine
Reason for the shape of PPF curve.
(c)
To determine
The
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What is opportunity cost? Explain the Law of Increasing Opportunity Costs with a numerical table and a graph as well.
QUESTION 9
Oliver is writing CML assessment questions for two introductory economics courses at UQ (ECON1010 and ECON1020), and currently
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ECON1010
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12
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1
1
12
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1
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36
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What is Oliver's opportunity cost of writing (producing) a single ECON1020 question? Answer to the nearest two decimal places. [a]
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Final Year Exam: Economics
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The definition of Product Possibility Frontier is
The graph which indicates the various production possibilities of two products when resources are fixed.
The graph that shows the highest amount of money a person can make over a period of time.
The graph that shows how supply and demand works.
The graph that tells us how well an economy is doing
Chapter 2 Solutions
Principles of Microeconomics California Edition 2nd Edition
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Similar questions
- 2. For each of the following, identify the full cost (meaning opportunity cost) involved: a. Aaron spends $200 on basketball shoes. b. Your friend takes you to the movies and pays for your ticket and concessions. c. James decides to go to a club and stays out all night before his economics exam. d. After signing up for a free trial of HBOMax, Jason watches 3 episodes of House of the Dragon.arrow_forwardCould you please provide an example (article) of the opportunity cost in real life and explain in economic terms why opportunity cost is in that particular situation?arrow_forwardWhat are Opportunity Costs? How is it different from Cost Benefits? (2 PAGES)arrow_forward
- Explain the following terms. opportunity costarrow_forwardWhat does the principle of increasing marginal opportunity costs meanarrow_forwardBuffy is thinking about opening an amulet store. She estimates that it would cost $350,000 per year to rent the location and buy the merchandise. In addition, she would have to quit her $80,000 per year job as a vampire hunter. Answer B -E please i know the answer to A. A).Define opportunity cost. B).What is Buffy's opportunity cost of running the store for a year? C).Buffy thinks she can sell $400,000 worth of amulets in a year. What would her accountant consider the store's profit? D).Should Buffy open the store? Explain. E).How much revenue would the store need to generate for Buffy to earn positive economic profit?arrow_forward
- Define the opportunity cost . What is the significance of opportunity cost in economics.arrow_forwardWhat is the difference between the Budget Constraint and Production Possibilities Frontier? How do you calculate the Opportunity Cost under each one?arrow_forwardSuppose that Sandy can produce 10 economic reports or make 2 sales calls. Suppose Tim can produce 2 economic reports or make 1 sales call. Which of the following is CORRECT? The opportunity cost for Tim of producing one sales call is 1/2 of an economics report. The opportunity cost for Sandy of producing one sales call is 10 economics reports. The opportunity cost for Sandy of producing one economics report is 1/5 of a sales call. The opportunity cost for Tim of producing one economics report is 2 sales calls.arrow_forward
- Identify the elements of scarcity, choice, and opportunity cost in each of the following: 1. The manager of an automobile assembly plant is considering whether to produce cars or sport utility vehicles (SUVs) next month. Assume that the quantities of labor and other materials required would be the same for either type of production. 2. A young man who went to work as a nurses’ aide after graduating from high school leaves his job to go to college, where he will obtain training as a registered nurse.arrow_forwardQUESTION 7 Olivia and Susan operate a store that sells burritos. There are two main activities: chopping up the ingredients and then cooking the fillings for the burritos. Olivia and Susan are deciding who should chop the ingredients and who should cook the fillings in order to maximise output. Olivia Susan Chopped Food (kg/hr) 15 20 Cooked Food (kg/hr) 20 30 Which of the following statements are true: For Olivia, the opportunity cost of 1kg of cooked food is 1.33kgs (to 2 decimal places) of choppectood. For Susan, the opportunity cost of 1kg of cooked food is 0.67kgs (to 2 decimal places) of chopped food. Susan should specialise in chopping. Olivia has an absolute advantage in chopping.arrow_forward** || 85% 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…arrow_forward
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