Macroeconomics: Principles, Problems, & Policies
20th Edition
ISBN: 9780077660772
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 1, Problem 8P
To determine
The graphical analysis of present goods versus future goods to explain the differences in growth rates.
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10. Jack and Jill work together at an IT company. They are asked to write a new
piece of code to fix a bug in some company software, and then they have to give a
presentation about it to their colleagues. Between the two of them, Jill works
faster. She could write the code in 6 hours, and prepare the presentation in 1
hour. Jack works slower. He would take 7 hours to write the code, and 2 hours to
prepare the presentation. Now assume that they have to divide their tasks so that
precisely one person works on the code and one person works on the presentation.
Who should work on what? Use the concept of comparative advantage in your
explanation.
es
On average, households in China save 40 percent of their annual income each year, whereas households in the United States save
less than 5 percent. Production possibilities are growing at roughly 9 percent annually in China and 3.5 percent in the United States.
Use graphical analysis of "present goods" versus "future goods" to explain the differences in growth rates.
Goods for the future (Capital)
PPC3
100
90-
80
70
60-
50-
40-
30-
20-
10
0
0
Production Possibilities
(United States)
PPC₂
PPC₁
B
10 20 30 40 50
A
60
70
Goods for the present
80 90 100
Future Goods
100
90-
80-
70
60-
50+
40
30-
20-
10-
0
PPC3
PPC₂
PPC₁
B
0 10
20
Instructions: Refer to the diagram on the left.
Which point best represents the combination of present and future goods in the U.S.? (Click to select)
Which dashed production possibilities curve best represents future growth in the U.S.?(Click to select)
Instructions: Refer to the diagram on the right.
Which point best represents the combination of present and…
The determinants of productivity
Consider a simple economy whose only industry is fishing. In this industry, productivity—the amount of goods and services a worker can produce per hour—is measured by the number of fish one fisherman catches per hour.
In the following table, match each example to the productivity determinant it represents.
Examples
Human Capital per Worker
Natural Resources per Worker
Physical Capital per Worker
Technological Knowledge
The fertile waters in which the fish feed and breed
An advanced mapping system that determines the likelihood of finding fish schools in different depths and locations
The skills workers develop through training before working on and piloting boats
The boats in the fishing fleet
Chapter 1 Solutions
Macroeconomics: Principles, Problems, & Policies
Ch. 1.2 - Prob. 1QQCh. 1.2 - Prob. 2QQCh. 1.2 - Prob. 3QQCh. 1.2 - Prob. 4QQCh. 1.A - Briefly explain the use of graphs as a way to...Ch. 1.A - Prob. 2ADQCh. 1.A - Prob. 3ADQCh. 1.A - Prob. 1ARQCh. 1.A - Prob. 2ARQCh. 1.A - Prob. 2ARQ
Ch. 1.A - Prob. 1APCh. 1.A - Prob. 2APCh. 1.A - Prob. 3APCh. 1.A - Prob. 4APCh. 1.A - Prob. 5APCh. 1.A - Prob. 6APCh. 1.A - Prob. 7APCh. 1.A - Prob. 7APCh. 1.A - Prob. 8APCh. 1.A - Prob. 8APCh. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8P
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