Principles of Macroeconomics (11th Edition)
11th Edition
ISBN: 9780133023671
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 2, Problem 8P
Subpart (a)
To determine
Identify inefficient
Subpart (b)
To determine
Identify productive efficiency.
Subpart (c)
To determine
Inefficient mix of output.
Subpart (d)
To determine
The figure which shows the technological advances.
Subpart (e)
To determine
The figure which shows the law of increase in opportunity cots.
Subpart (f)
To determine
Impossible combination of meat and fish.
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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.
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In the attached figure, if 2 million computers are produced per year, then:a. The marginal cost of one computer exceeds the marginal benefit of one computer, so more computers must be produced.b. The marginal cost of a computer exceeds the marginal benefit of a computer, so fewer computers must be produced.c. The marginal benefit of a computer exceeds the marginal cost of a computer, so more computers must be produced.d. The marginal benefit of a computer exceeds the marginal benefit of a computer, so fewer computers must be produced.FOR EACH ALTERNATIVE, PLEASE EXPLAIN WHY IS TRUE, FALSE OR UNCERTAIN.
2. Match each of the following to the diagram below (choose
one or more):
a. Inefficient production of meat and fish
b. Productive efficiency
c. Technological advances in the production of meat and
fish
d. The law of increasing opportunity cost
e. An unattainable combination of meat and fish
Fish
0
Fish
0
a.
d.
A
Meat
Meat
Fish
0
Fish
0
b.
e.
Meat
Meat
0
Fish
0
C.
f.
Meat
Meat
A
Chapter 2 Solutions
Principles of Macroeconomics (11th Edition)
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