Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 2.3.11PA
To determine
Self-interest.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is Economics, and Why Is It Important?
What is Studied in Microeconomics and Macroeconomics?
What are some of the Requirements for Economic Models?
** || 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…
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
Microeconomics (7th Edition)
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
Knowledge Booster
Similar questions
- According to the article of Jan 18, 2016 "several Canadians are nominated for Oscars" answer the question that What is the trade off between movies and other goods and services? How is this trade off illustrated by the production possibilities frontier? Use economic concepts to answer this question.arrow_forwardDiscuss how an economy can shift toward a market-based system.“References “.arrow_forwardWhat is the difference between macroeconomics and microeconomics?arrow_forward
- Explain how microeconomics differs from macroeconomics. Which of the following headlines, taken from the various issues of The Daily Graphic, deal with microeconomics:“Nestle Ghana posted a 18% increase in sales”“GRIDCO plans to slash more jobs”“Ghana’s Output Grew by 5.8%”“Housing starts soared 10% in September”“Ghana to Breach key Deficit Target it helped to create” Explain each issue why it is a microeconomic issuearrow_forwardElijah and Aneesha are farmers. Each one owns a 14-acre plot of land. The following table shows the amount of maize and squash each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing maize or squash or to produce maize on some of the land and squash on the rest. Elijah Aneesha SQUASH (Pounds) 140 On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Aneesha's PPF. 126 112 98 84 70 42 28 14 0 Maize (Pounds per acre) 10 18 0 Squash (Pounds per acre) 6 70 140 210 280 350 420 490 560 630 MAIZE (Pounds) 700 Elijah's opportunity cost of producing 1 pound of squash is squash is pounds of maize. Because Elijah has a comparative advantage in the production of squash, and Elijah's PPF Aneesha's PPF (?) Aneesha has an absolute advantage in the production of maize, and Aneesha has an absolute advantage in the production of squash. 2…arrow_forwardMICROECONOMICS ( ALL OF IT IS ONE QUESTION!!!) For the article write the number of the graph that best describes what happened. King Size Beds For some couples, the solution for too much pandemic togetherness is saying good night on Valentine’s Day in a bigger bed where they don’t need to touch. After nearly two years of working from home and sharing close quarters with spouses, kids and pets, people are tossing out their full- and queen-size beds in favor of more spacious kings. After nearly two years of working from home and sharing close quarters with spouses, kids and pets, people are tossing out their full- and queen-size beds in favor of more spacious kings. Robert Pagano and his girlfriend, Tracy Jones, weighed the pros and cons of switching to a king from a queen last year. The couple, who live in Las Vegas, had been getting on each other’s nerves when they were stuck working from home. “We hoped a bigger bed would help us avoid arguments,” Mr. Pagano said. “But we were…arrow_forward
- Explain briefly the following three principles of economics by Mankiew. 1- The cost of something is what you give up to get it 2- Markets are a good way to organize the economic activity. 3- Prices rise when government print too much money.arrow_forwardBen says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that: Ben's statement is normative, but Holly's is positive. Holly's statement is normative, but Ben's is positive. Both statements are normative. Both statements are positive.arrow_forwardWhat role does the profit motive play in a market economy?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning