Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Question
Chapter 3, Problem 1DQ
To determine
Explain how resources limitation is affected in different cases.
Expert Solution & Answer
Explanation of Solution
- (a) The poorest person on Earth: The resources limitation to the poorest person on the Earth is a dangerous situation. The
opportunity cost of any extra goods or services is life threatening. - (b) The richest person in the United States: The richest person also faces problem of resources limitation. For example, he can buy a ship because he is rich, but he will lack the resources to buy an oil company. Thus, resources scarcity not only affects the poorest person but also affects the richest person.
- (d) A farmer in Kansas: If the farmers face scarcity in resources, it is hard for them to take decisions regarding production. However, the important factor is that they cannot change the decision regarding farming immediately.
- (e) The government of Indonesia: If the government faces resources limitation, it affects the entire nation. The government has an authority to command and allocate the amount of labor resources and other productive resources in the nation.
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The world health organization malaria chief says that it is too costly to try to fully eradicate the disease. He says that by using nets, medicine, and DDT it is possible to eliminate 90% of malaria cases. But to eliminate 100% of cases would be extremely costly.
4. Make a graph of the production possibilities frontier with malaria cases on the X-axis and other goods and services on the Y- Axis.
( compatible with Microsoft word would be ideal )
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Chapter 3 Solutions
Economics: Principles & Policy
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Similar questions
- Suppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables. The combination of ________ reflects ________. Question content area bottom Part 1 A. 1000 books and 1500 tables; a free lunch B. 1000 books and 500 tables; an efficient point C. 1000 books and 1000 tables; a free lunch D. 500 books and 1000 tables; an inefficient but attainable pointarrow_forwardthe most important use for cattle in the new world was? a. for Transportation b. for food c. for fertilizer d. for tallowarrow_forwardIf US decides to use all it resources, it can either produce 50 cars or 25 computers. What is the opportunity cost of US producing a car? A. 0.75 Computers B. 2 Computers C. 0.5 computers D. 1.3 Computersarrow_forward
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