1.The production possibilities curve below show the hypothetical relationship between the production of food and clothing in an economy. Food Clothing TII 7 18 22 Combination ABCDE 61362 4 3 2 1 0 (a) What is the marginal opportunity cost of producing the second unit of clothing? (b) What is the total opportunity cost of producing the second unit of clothing?

1.The production possibilities curve below show the hypothetical relationship between the production of food and clothing in an economy. Food Clothing TII 7 18 22 Combination ABCDE 61362 4 3 2 1 0 (a) What is the marginal opportunity cost of producing the second unit of clothing? (b) What is the total opportunity cost of producing the second unit of clothing?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter1: Ten Principles Of Economics

Section: Chapter Questions

Problem 2CQQ

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5. Opportunity cost and production possibilities Juanita is a skilled toy maker who is able to produce both trucks and puzzles. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. Hours Producing Produced Choice (Trucks) (Puzzles) (Trucks) (Puzzles) 8 4 3 10 B 4 4 16 C 1 19 8 20 On the following graph, use the blue points (circle symbol) to plot Juanita's initial production possibilities frontier (PPF). U DE
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Use the following table to answer the question below. Jake's Production Possibilities Schedule Jane's Production Possibilities Schedule Pounds of Green Pounds of Corn Pounds of Green Pounds of Corn Beans Beans 160 80 10 120 20 60 40 20 80 40 30 40 60 20 40 80 Jake should specialize in the production of which good? neither both corn O green beans
4: What does a Production Possibilities Curve depict? 5: What is the Law of Demand? 6: What components will cause a Shift in the Demand curve?
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Mid- sem 1. Assume that the schedule below describes the production possibilities confronting an economy. Using the information from the table? (a) Draw the production possibilities curve .be sure to label each alternative output combination (A through B) (b) Calculate and illustrate on your graph the opportunity cost of producing one CD player per week? (c) What is the cost of producing a second CD player? What might account for the differences? (d) Which point on the curve is the most desired one? How will we find out? Potential weekly pianos CD players Output combinations A 10 9 1 C 7 2 4 3 E 4
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In this week’s discussion, we focus on how the market changes when there are changes to the supply or demand of goods and services. (a) “This year the weather smiled on us, and we made a good crop,” said a wheat farmer in Manitoba. “But just as we made a good crop, the economic situation changed.” This quotation brings to mind the saying, “If you are a farmer, the weather is always bad.” How would use economic theory to explain that this saying might be true and what would you suggest the farmer do to make the best of the situation despite good or bad weather? (one paragraph) (b) Along with your textbook reading, review the related videos and article for a background on Canada’s marijuana legalization, then respond to the following questions:Do you see any economic effects not mentioned that might occur in the longer period? What major changes do you see happening with the supply and demand sides of the cannabis market in the long run? (1-2 paragraphs; no mini essay).
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5. Opportunity cost and production possibilities Edison is a skilled toy maker who is able to produce both boats and puzzles. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. ^ Hours Producing Produced Choice (Boats) (Puzzles) (Boats) (Puzzles) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 19 E 0 8 0 20 On the following graph, use the blue points (circle symbol) to plot Edison's initial production possibilities frontier (PPF). 9 &
6. Scarcity, opportunity cost, and marginal analysis Tim is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Because his pool sessions are helping him swim more quickly, Tim plans to reduce by 1 hour per week the time he spends training on the bike and increase by 1 hour the time he spends in the swimming pool; however, his wife says that he should stop doing any biking and running and spend all 20 hours per week in the pool. Which basic principle of individual choice does Tim's plan illustrate that his wife's advice does not? Many decisions are made on the margin. O Resources are scarce. People usually exploit opportunities to make themselves better off. O All costs are opportunity costs.