Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 7, Problem 3DQ
To determine
Relevance of consumer behavior theory.
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5. Refer to the following production possibilities table for con.
sumer goods (automobiles) and capital goods (forklifts): LO1.6
a. Show these data graphically. Upon what specific assump-
tions is this production possibilities curve based?
b. If the economy is at point C, what is the cost of one more
automobile? Of one more forklift? Which characteristic of
the production possibilities curve reflects the law of increas-
ing opportunity costs: its shape or its length?
c. If the economy characterized by this production possibilities
table and curve is producing 3 automobiles and 20 forklifts,
what could you conclude about its use of its available
resources?
d. Is production at a point outside the production possibilities
curve currently possible? Could a future advance in technol-
ogy allow production beyond the current production possi-
bilities curve? Could international trade allow a country to
consume beyond its current production possibilities curve?!…
The Economics Student Club has $30 to spend on pizza and pop at each of its
meetings. If pizza costs $8 and the club buys 3 pizzas, how much money can be
spent on pop?
O $24
O $3
O $30
O $6
Assume that your company produces two goods: laptops and tablets. Assume aslo that your company has limited resources( including time) to devote to producing these items. Now assume that the laptop team does something to improve the efficiency of making laptops, while the tabley holds to old methods. Given the change you can
a) only increase your production of laptops
b) only increase your production of tablets
c) increase production of both items
d) not increase your production in either tablets or laptops.
Chapter 7 Solutions
Microeconomics
Ch. 7.1 - Prob. 1QQCh. 7.1 - Prob. 2QQCh. 7.1 - Prob. 3QQCh. 7.1 - Prob. 4QQCh. 7.A - Prob. 1ADQCh. 7.A - Prob. 2ADQCh. 7.A - Prob. 3ADQCh. 7.A - Prob. 1ARQCh. 7.A - Prob. 2ARQCh. 7.A - Prob. 1AP
Ch. 7.A - Prob. 2APCh. 7.A - Prob. 3APCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7P
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Similar questions
- 11.Explain how (if at all) each of the following events affects the location of a country’s production possibilities curve: LO5 a.The quality of education increases. b.The number of unemployed workers increases. c.A new technique improves the efficiency of extracting copper from ore. d.A devastating earthquake destroys numerous production facilities.arrow_forwardIf Korea is currently producing at efficiency, and it proceeds to increase the production of missiles, then, as long as nothing else changes, its: O A. Production-possibilities curve will shift outward. O B. Production-possibilities curve will shift inward. O c. Production of non-military goods will increase. O D. Production of non-military goods (civilian goods) will decrease.arrow_forwardLast Word) Behavioral economics incorporates culture and the studies of Multiple Choice sociology and economics. psychology and economics. mathematics and economics. finance and economics. None of these choices are correct.arrow_forward
- Suppose that United States is currently producing two goods: tanks and cars using its current resources. As the country is preparing for a war, it intends to produce more tanks and to do so, it starts coverting its car factories into tank factories. Which of the following is true? O The production possibilities curve will show the increasing opportunity costs as more tank is produced. The production possibilities curve for cars and tanks will shift outward. O The production possibilities curve will show decreased opprotunity costs as more tank is produced. O The production possibilities curve will shift inward.arrow_forwardBased on the production possibilities frontier shown below, if this economy decides to shift its resources from only producing books in order to produce 8,000 pairs of sneakers, what is the opportunity cost of producing one pair of sneakers? Books (in thousands) 12 10 8 O 2 pairs of sneakers 2 books 6 0.25 pairs of sneakers O 0.25 books Pairs of Sneakers (in thousands) 10 12arrow_forwardAssume that Robyn wants to buy socks and once she finds out that the price per pair is $5. she decides to buy 4 pairs of socks. Which of the following is true? O a) The marginal benefit (or marginal utility) of the 5th pair is higher than the marginal cost of the Sth pair O b) The marginal benefit (or marginal utility) of the 4th pair must be equal to $20 O O The marginal benefit (or marginal utility) of the Sth pair must be lower than $5 O d) The marginal benefit (or marginal utility) of the first pair must be lower than 55arrow_forward
- Which of the following does not correctly explain about the purposeful behavior that reflects "rational self-interest? 1) Sellers try to make the most profits possible from the sales of their products as many as possible. Consumers spend their incomes to get the maximum benefit or satisfaction O 2) from the goods and services they purchase. Producers allocate their limited resources to minimize their costs to achieve a 3) certain level of production. 4) People care for nothing but his or her own goal since there is a tradeoff problem caused by limited resources. Question 14 Listen Which of the following is NOT the factors of production? 1) money. 2) land. 3) labor. 4) entrepreneur ability.arrow_forwardIf you enter a football stadium to watch a game and suddenly it starts to rain, should your decision to stay or leave depend on what you paid for the ticket, based on sunk cost fallacy? O No, because the money you paid for the ticket is gone either way. Yes, because by staying you made sure you got your money's worth from the ticket. It depends on how exciting the game is that you're thinking of leaving No, because you can just watch the game on television insteadarrow_forwardWith current technology, suppose a fifirm is producing 400 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. If the fifirm can sell these 400 loaves at $2 per unit, will it continue to produce banana bread? If this fifirm’s situation is typical for the other makers of banana bread, will resources flow to or away from this bakery good?arrow_forward
- Maya and Max are neighbors. Each grows lettuceand tomatoes in their gardens. Maya can grow45 heads of lettuce or 9 pounds of tomatoes thissummer. Max can grow 42 heads of lettuce or6 pounds of tomatoes this summer. If Maya andMax specialize and trade, the price of tomatoes (interms of lettuce) would be as follows: 1 pound oftomatoes would cost between ______ and ______pounds of lettucearrow_forwardT have eaten two slices of pizza costing $3 each. and am considering a third slice--also costing $3. What dollar amount am I considering in my decision? O $6 O none of these O $9 O $3arrow_forwardWhich of the following scenarios might explain what an economy would be operating inside its production possibilities curve? Select one: O a. Because damage to natural resources, such as might be caused by deforestation leading to erosion of topsoil, has shrunk the land resource O b. Because of discrimination against employing workers of a certain race or gender O c. Because technological innovations have increased the productivity of labour and capital O d. Because shrinking population has reduced the number of productive workers in the economy Next page IMG_7969.jpegarrow_forward
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