A curve that shows the maximum amount of any two products that can be produced in an economy from a fixed resource and a fixed technology< A, Production Possibilities frontier B, Marginal Product curve C, Demand Curve D, Total Product Curve

ِA- We have studied the production technology. Explain the concept with an example. B- We have studied labor-intensive technology and capital-intensive technology  Explain the difference between the two production processes with an example of each?

An economy's production possibilities frontier is fixed in the long run.  True  False

Spot the economics in the following cases by identifying the concept described within the scenario and then briefly articulating your answers When parking violations in San Francisco were $100, there were 250,000 tickets given out. When violations went up to $175 there were 200,000 violations given. Ford produces trucks and loses ⅓ of a sedan for each truck produced. When it produces sedans, it loses 2 trucks per sedan produced. Driving down Mendocino Blvd, you notice a street crew working near campus. One worker is jackhammering away, while another removes the rubble. Both are extremely productive. Two workers are talking and having a smoke, while another three are having some coffee all while watching the first two workers. Recently, I attempted to cancel my SiriusXM subscription. I logged into their website and clicked on the “cancel subscription” link which I had a hard time finding because it was hidden in some obscure menu. When I clicked on cancel, a window popped up…

Com 120.000 D 80.000 40.000 Robots 5.000 10.000 15.000 In the graph above, the resources in this economy are

Refer to the following table. What is the total cost of producing five (5) units of the good? Output 1 2 3 4 5 Total Fixed Total Variable Total Average Fixed Cost Cost Cost Cost 6 $950 $1,050 $1,000 $1,025 $825 $425 ??? $250 Marginal Cost $25

For an economist, a technology is: A method of combining resources to make goods and services. 8 8 8 A computer. A capital-intensive method of production. Any production technique that is patented.

Specify and explain the typical shapes of marginal-benefifit and marginal-cost curves. How are these curves used to determine the optimal allocation of resources to a particular product? If current output is such that marginal cost exceeds marginal benefifit, should more or fewer resources be allocated to this product? Explain.

Table 19.15 shows how the average costs of production for semiconductors (the "chips" in computer memories) change as the quantity of semiconductors built at that factory increases. a. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? b. If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? c. Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers. Quantity of Semiconductors 10,000 20,000 30,000 40,000 100,000 Table 19.15 Average Total Cost $8 each $5 each $3 each $2 each $2 each

Classify each resource used in production as land, labor, capital, entrepeneurs, or human capital. Natural resources Labor Physical capital Entrepreneurs Answer Bank Pat's experience tweaking the extruder Kyle's Taco Truck (the truck itself) The Rio Grande LaShonda, a server at Sonic Drive-In your econ professor's understanding of how markets work your favorite bartender ore Aunt Sandy's Jammin' Jellies (the business) Kyle, operator of Kyle's Taco Truck Which resource earns profits? O capital entrepreneurs O natural resouces your coworkers at the big-box store Farmer Bailey's tractor Lake Casitas Human capital O labor human capital