You'll get a detailed solution from a subject matter expert that helps you learn core concepts. These decisions provide people with the greatest benefit or satisfaction . OIn order to construct such a model, an economist wouid need real e data regarding countes that produce only tw goods The fact that there are only two goods produced in this theoretical economy is a simpifying aumption tht st aows ecinomsts demonstrate kery economic concepts. Before he bought the tool, he would have to give up one truck. View & \text{Hi-Voltage} & \text{EasySlim}\\ 8 We reviewed their content and use your feedback to keep the quality high. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. What happens to this frontier if disease kills half of the economys cow population? b. Balance of Payments When we are discussing international trade, we are focusing on the flow of goods and services, as well as capital, among countries. POB 5.01 DRAFT. Before he bought the new tool, he could have produced one truck and 19 balls, so (1, 19) was a point on his initial PPF. produces 2 goods, computers and cell phones. Each works 10 hours a day and can produce two services: mowing lawns and washing cars.In an hour, Larry can either mow one lawn or washone car; Moe can either mow one lawn or wash twocars; and Curly can either mow two lawns or washone car.a. Because of the drought, fewer bushels of alfalfa can be produced on any given amount of land; however, there is no reason to think that the maximum amount of construction vehicles that can be produced would change. This change is an example of the law of increasing opportunity costs. Dinah's Diner pays Brian $225 per week to work as a short-order cook. POS Opportunity cost e to acknowledge Consider the following production possibilities frontier model for an economy that produces only two goods: bartey and cars. A) Sandwich a pos FACTOR Economics models can accurately pinpoint changes in exchange rates. Similarly, when you look at the horizontal axis, you see that if South Africa produces zero construction vehicles, it can initially produce a maximum of 30 million bushels of alfalfa per year. This could be a, The $225 Brian spends to purchase medical services from the Medical Clinic, The $225 per week Brian earns working for Dinah's Diner, When Crystal (a household) supplies her labor to any firm, labor is an input (a factor of production) that, When the breakfast is provided to Crystal (a household), the breakfast is an output that flows from a. Why is it important for an economy to be on its production possibilities frontier? What is the common difference between the allocation of joint costs to ( a ) joint products and ( b ) by-products? c. Nothing is free fixed resources mean there are limited and scarce resources and full employment means all, A: Production possibilities frontier shows combinations of two goods a country can produce with the, A: Point The effect of a large government budget deficit on the economy's price level MACRO The effect of a cigarette tax on the quantity of cigarettes sold MICRO In contrast, disagreement due to differences in values reflect differing assessments on fairness or equity. F02000 Most questions about economics address the central banking system and financial economics. ECON 102- Problem Solving: Thinking Like an E, Chapter 4: The Market Forces of Supply and De, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams. z = C+I+G The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists demonstrate key economic concepts. itive comment between constructive feedback. Consider the following production possibilities frontier model for an economy that produces only two goods: corn and smartphones. Jack owns a convertible bond with a $1,000 face value that can be exchanged for C600800 Which of the following is true regarding this economic model? Despite their differences, with which proposition are two economists chosen at random most likely to agree? In this scenario, households sell factors of production in factor markets when Alyssa supplies her labor to Classy's Jewelry Store and when Tim supplies his labor to Pillmart Pharmacy. Suppose that Yakov, an economist from a business school in Georgia, and Ana, an economist from a school of industrial relations, are arguing over government bailouts. For future development of the economy, sustainable growth is important In contrast, differences in scientific judgments are due to differing opinions about factual matters, e.g., the relative merits of competing theories or the values of economic parameters. Again, consider combination D, and consider the effects of moving from there to combination E. Both before and after Jacques buys the tool, he can produce 19 balls if he devotes 6 hours to producing them and 20 balls if he devotes 8 hours to producing them. Make a chart of Gretel's schedule, with driving times and service times. Considers the economy from the consumer's point of view Scientists of all types make assumptions in their models to simplify the complex world they are trying, to describe. Our experts will gladly share their knowledge and help you with programming projects. Use the green points (triangle symbol) to plot his new PPF on the previous graph. However, positive statements can always be supported or refuted by data, while normative statements require a larger philosophical framework to evaluate. D Economics Chapter 2 quiz Flashcards | Quizlet b. Alyssa earns $650 per week working for Classy's Jewelry Store. This PPF is not an economic model. Full Document. 1 For instance, when you look at the vertical axis, you see that if South Africa produces zero bushels of alfalfa, it can initially produce a maximum of 180,000 construction vehicles per year. OIn order to construct such a model, an economist would need real ife data regarding countries that produce only two goods households and firms are both buyers.d. 100 100 B) Sandwich critical feedback between less critical feedback. PRODUCTION ALTERNATIVES NORM Question: Which of the following is true regarding this economic model? Taxes You decide to start each meeting with a few minutes to say, "I'd lik Because the drought does not affect the number of construction vehicles South Africa can produce, you should have left the point at 180,000 construction vehicles per year. The fact that there are only two goods produced in this theoretical economy, when, in reality. Similarly, when you look at the horizontal axis, you see that if the United Kingdom produces zero industrial robots, it can initially produce a maximum of 210 million bushels of corn per year. The following diagram presents a circular-flow model of a simple economy. . It is immoral for a government to redistribute money from one person to another. POB 5.01 | Business Quiz - Quizizz Economics is a social, If demand becomes more elastic, which of the following will happen, as demonstrated by the graph shown here? plethora realization scarcity profusion, Suppose an economy produces two goods: food and machines. Because the flu epidemic decreases the amount of corn the United Kingdom can produce, you should have moved the point to 140 million bushels of corn per year. 45 . When a domestic currency depreciates, what happens to the purchases of. The $450 per week Yakov earns working for Little Havana. a. While many economic questions are open to debate, the field is largely in agreement on some points. Which of the elements of this scenario represent a flow from a firm to a household? answered Which of the following is true regarding this economic model? This PPF is not an economic model. \end{matrix} Profits, dividends and rent Firms, in turn, earn revenue when households buy goods and services. Goods and services have a price because The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Explain why the situation faced by a labor union may resemble the situation faced by a monopoly firm. The convers When the aspirin is provided to Alyssa (a household), the aspirin is an output that flows from a firm to a household. Stuart earns $8 per hour working at a fast-foodrestaurant.c. The fact that there are only two goods produced in this theoretical economy is a simplifying. The following diagram shows its current production possibilities frontier for corn, an agricultural good, and industrial robots, a capital good. an; an Vaccination is a method of fighting Covid -19 Economists therefore adopt simplifications to explain concepts and create insights into how the real economy works. Consider the following production possibilities frontier model for an economy that produces only two goods: alfalfa and smartphones. Use the diagram in part a to illustrate this. 3. Which of the following is true regarding this economic model? Economists are no different. Suppose Alyssa earns $650 per week working as jewelry appraiser for Classy's Jewelry Store. A) The technological advance reduced the amount of resources needed to produce 30 machines. Identify the correct sequence of step in the generation of an action potential. You are meeting with your new remote team for the first time. In order to construct such a model, an economist would need real life data regarding countries that, Scientists, of all types, make assumptions in their models to simplify the complex world they are, View Suppose Jacques buys a new tool that enables him to produce twice as many trucks per hour as before, but it doesn't affect his ability to produce balls. Because I don't. Y , gh it was immature attempt at humor. (B)r All three spend half their time on eachactivity. Which of the following is true regarding exchange rates? Your physics assignments can be a real challenge, and the due date can be really close feel free to use our assistance and get the desired result. Opportunity cost is the loss of a quntity of a good, A: It takes Andy 45 minutes to complete a load of laundry and 15 minutes to wrap a present. The $100 Shen spends to purchase tax services from A-Plus Accountants. The effect of government regulation on a monopolist's production decisions MICRO Production of X a; a, 10). "What is the purpose of this? The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts. Check all that apply. c. Fewer people want them The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Since this change involves producing 5 fewer balls per day (1611=51611=5), the opportunity cost of producing the third truck per day is 5 balls per day. What is Production Possibility Frontier? Start your trial now! Jacques: I think a switch from the income tax to a consumption tax would bring growth in living standards. itive comment between constructive feedback. A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. Economics can accurately predict what the national economy will do in six months to a year. Circular Flow Diagram For women aged 60 to 69, breast cancer screening significantly reduces breast cancer mortality. Hence, as Jacques increases his production of trucks, his opportunity cost of producing more trucks increases. Moreover, a firm sells goods, when Dinah's Diner provides the breakfast to Crystal. C. a fixed lead time. Raising the minimum wage increases the rate of unemployment. There are three certainties in this world: Death, Taxes and Homework Assignments. First week only $4.99! 20 d. What other goals might unions have that make unions different from monopoly firms? The incidence of the, Which of the following is NOT included on a RACI? Econ 210 Ch 2 Flashcards | Quizlet Without a bailout of severely distressed financial firms, the economy will experience a deep recession. The fact that they are only two goods produced in this theoretical economy, when, in reality, economies produce many more type goods, means this model is generally useless. Since this change involves producing 3 fewer balls per day (1916=31916=3), the opportunity cost of producing the second truck per day is 3 balls per day. Which of the following is TRUE regarding the economic order quantity (EOQ) model? Multiple Choice Question 1 pizza Using appropriate graphs, explain how a decrease in marginal propensity to import will affect the si. (A)r All three spend all their time washing cars. Select the statement below that is true for BOTH supply AND demand. Moreover, a firm sells goods and services to a household in product markets when Pillmart Pharmacy provides the aspirin to Alyssa and Classy's Jewelry Store provides the necklace to Tim. Firms, in turn, earn revenue when households buy goods and services. A a. It's quite easy to prove that you are not the king of Spain, but to argue that it is wrong to kill innocent children, you must appeal to a larger moral framework. This chapter has assumed that labor is supplied by individual workers acting competitively. which is trading at $50 per share. a; an Our discussion breaks down as follows: 1. It would be harder to find two randomly chosen economists who both agree with either of the other propositions. Positive statements may be false (for example, "You are the king of Spain"), and normative statements may reflect the value judgments of a large majority of people (for example, "It is wrong to kill innocent children"). The young person's choice maximizes lifetime welfare O This PPF is not an economic model. The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. This PPF is not an economic model. \text{Production volume} \ldots\ldots\ldots & \text{12,500 bottles} & \text{180,000 bottles}\\ Jacques: Indeed, it's gotten crazy! which is trading at $50 per share. ProductionvolumeLiquidmaterialsDrymaterialsBottlesLabelsMachinesetupsMachinehoursHi-Voltage12,500bottles1,400gallons620pounds12,500bottles3labelsperbottle500setups200MHEasySlim180,000bottles37,000gallons12,000pounds180,000bottles1labelperbottle300setups3,750MH. Because he can now make more trucks per hour, Jacques's opportunity cost of producing balls is higher than it was previously. She uses $10 to have. C. Frances: I disagree. Which of the elements of this scenario represent a flow from a household to a firm? We all laughed at the joke about_ honest man, even thou Indeed, one survey that 93% of economists agree with this proposition. The effects of government tax policy on long-term economic growth MACRO You decide to start each meeting with a few minutes to say, "I'd lik Housing prices rose very rapidly during 2002 to 2007. A: Economics is a social science that discusses human behavior regarding their unlimited wants in terms, A: Since you have asked multiple questions, we will solve the first question (3 sub parts) for you. This could be a flow of dollars, inputs, or outputs. Dinah's Diner pays Shen $325 per week to work as a short-order cook. X The project sponsor asks the project manager to spend less money on materials. A. Jack owns a convertible bond with a $1,000 face value that can be exchanged for This could be a flow of dollars, inputs, or outputs. Identify the articles that correctly complete the following sentence. For example, point A is inefficient because it is possible for Japan to produce at point F instead, where the economy is producing both more corn and more laptops. High level project work Actions required to manage the project Detailed project tasks Who provides gate approval, Which of the following is an example of a change in the scope constraint? 0 Therefore, Jacques's increased ability to produce trucks increases his opportunity cost of producing balls. Studying more hours leads to an increase in your GPA. Dmitri: I think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese. It implies that the interest, A: Macroeconomics is the discipline of economics concerned with the overall structure, performance,, A: Answer a) Final Exam Chapter 12 Flashcards | Quizlet B. a fixed ordering cost per year. The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts. for any assignment or question with DETAILED EXPLANATIONS! However, no model can include every detail of a system as complex as an, economy. I need help with understanding this. Your comments have been successfully added. , gh it was immature attempt at humor. Data about these products follow. You are meeting with your new remote team for the first time. Wants Production of Y She uses $8 to have breakfast at Dinah's Diner. Identify the articles that correctly complete the following sentence. She buys the chocolate bar as she wants it more than the drink and the crisps. an; a ) An increase in real GDP per capita implies that income is more evenly distributed in the economy. economies produce many more types of goods, means this model is generally useless. G = g0 +g1Y I think government funding of health insurance is useful to ensure basic fairness. What Is Rational Choice Theory? - Investopedia For instance, when you look at the vertical axis, you see that if the United Kingdom produces zero bushels of corn, it can initially produce a maximum of 90,000 industrial robots per year. Which of the following statements regarding economic growth is correct? e to acknowledge The opportunity cost of buying the chocolate bar is Economics 101 CH 2 Q1.pdf - Back to Assignment Attempts: Shanna spends $40 to get a haircut.d. The effect of federal government spending on the national unemployment rate MACRO Bright Day Company produces two beverages, Hi-Voltage and EasySlim. 3. 62 views, 3 likes, 2 loves, 1 comments, 0 shares, Facebook Watch Videos from Eastview Baptist Church: Eastview Live households are buyers, and firms are sellers.c. A) Set clear expectations for each team member, with SMART goals. . \text{Mixing department}\\ Brian uses $225 to purchase medical services from the Medical Clinic. Which statement below about economics is false? d. Chocolate bar Resources are scarce in relation to peoples demands FACTOR. It is a concave curve which shows the combination of the, A: Economics is a branch of social science that deals with the production, distribution, and, A: PPF shows the different combinations of two goods that can be produced with available resources. The simplicity of the model allows those without formal, backgrounds in economics to understand, at a high level, the economic activities that take place in an, Based on this model, households earn income when, In the circular-flow model of an economy, households own all the factors of production. While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy. 4.9 (13 reviews) The following diagram presents a circular-flow model of a simple economy. ECO 102 Macroeconomics Unit 1 Milestone 1 Sophia Course She uses $10 to buy a box of aspirin at Pillmart Pharmacy. Multiple Choice Question 42 this economy always operates on its productions possibilities frontier. b. The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists demonstrate key economic concepts. . No matter where you study, and no matter, Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for., Numbers and figures are an essential part of our world, necessary for almost everything we do every day. However, now that he has the tool, it means giving up two trucks. Therefore, the $250 is a payment that flows from a household to a firm. If, A: The production possibility frontier shows all the maximum combinations of the two goods that can be, A: The cost that depicts the cost of the next best alternative being foregone is known as opportunity, A: Production Possibilities The concept of a border refers to the idea that in a particular economy,, A: The production possibility frontier (PPF) is a business analysis curve that represents the various, A: Normative statements are those kind of statements in economics that talk about the value judgement, A: Shortage or scarcity is one of the critical ideas of financial matters. Explanation: PPF model the production possibility frontier states that two types of goods can be produced, at any given time of production, and for certain resources provided. 25 shares of WUF stock, Does this vary based on the situation? 7 Aggregate Supply and Aggregate Demand. Sam uses $150 to purchase air travel to Hawaii from Flyaway Airlines. Households earn their income when firms purchase or rent these factors of production to use them to produce goods and services. Tim earns $200 per week working for Pillmart Pharmacy. The points on the production possibilities frontier represent all combinations of output produced using all of the nation's available resources and its current technology, such that the nation cannot produce more of one good without producing less of the other. Switzerland, officially the Swiss Confederation, is a landlocked country located at the confluence of Western, Central and Southern Europe. Macroeconomics studies the application of economics across an economy. Course Hero is not sponsored or endorsed by any college or university. A] Real gross domestic product (GDP) measures the impact of economic growth on pollution and environmental degradation. All, A: Part (a) There are two main reasons that economists tend to disagree: differences in values and differences in scientific judgments. Shen uses $100 to purchase tax services from A-Plus Accountants. In the circular-flow model of an economy, households own all the factors of production. The disagreement between these economists is most likely due to differences in values . Keep up with the worlds newest programming trends. * The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. This year and experience a Technological advance and its machine making industry. A) It provides you an opportunity to acknowledge the assistance of a remote team member. In some markets, however, the supply of labor is determined by a union of workers. "What is the purpose of this? goods, means this model is generaly useless. B When Alyssa (a household) supplies her labor to any firm, labor is an input (a factor of production) that flows from a household to a firm. It would be harder to find two randomly chosen economists who both agree with either of the other propositions. This clearly states the thought and simplifies the understanding of economy, based on two products to be produced from same restricted resources. b. Control. Unlimited 7. A: The production possibility frontier shows the different combination of two goods that can be, A: The wants and desires of the individuals in the economy are unlimited but resources available to, A: The production possibilities frontier (PPF) is a downward sloping curve which is concave to the, A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for. Under severe restrictions 80 c. Money Because the flu epidemic decreases the number of industrial robots the United Kingdom can produce, you should have moved the point to 60,000 industrial robots per year. breakfast at Dinah's Diner. Economists make simplifying assumptions in all economic models in order to focus on the most important economic variables in a given situation. d. Less able to be fulfills Cons. 37 a. ECO 102 Macroeconomics Unit 1 Milestone 1 Sophia Course - Issuu In this scenario, households sell factors of production in, to the Medical Clinic and when Brian supplies his labor to Dinah's Diner. 4. How does your diagram illustrate i) choice ii) scarcity, Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with ________, the incentives that influence those choices, and the arrangements that coordinate them. Microeconomics studies decision-making at the individual level. Showan efficient point, an inefficient point, and an infeasible point. Which of the following is true regarding this economic model? Consider the following production possibilities frontier model for an economy that produces only two. \text{Department} & \text{Driver} & \text{Cost}\\ The data below shows the various production possibilities for an economy that produces two goods, cars, and television sets.