Summer 2013 Name: Answer key Date: SFU ID: Section: 1. Explain how three economic concepts are illustrated by the production possibility boundary. Scarcity: The production possibilities boundary (PPB) separates attainable combinations of goods from those that are unattainable. Thus scarcity is shown by the existence of some unattainable bundles of goods. Choice: Because of scarcity‚ societies must
Premium Economics Price Costs
FOE_C02.qxd 1/15/07 14:45 Page 16 »2 The production possibility frontier (curve): the PPF or PPC The starting point in our economic analysis is to consider what an economy can produce. As consumers we may want many things‚ but there is a limit to what our economy can actually produce. This can be analysed using the production possibility frontier (PPF). In this unit we examine the factors that determine how much an economy can produce and the implications of different output decisions
Premium Economics Supply and demand Market economy
Prof. Gustavo Indart Department of Economics University of Toronto ECO 100Y INTRODUCTION TO ECONOMICS Problem Set 1 1. Labour is the only resource in an economy with the following maximum production possibilities. (The graph is drawn as a curve rather than points under the assumption that opportunity cost is constant between options.) Option 1 2 3 4 a) b) c) d) e) f) Clothes (Tons) 50 40 20 0 Food (Tons) 0 30 70 100 What is the opportunity cost of increasing Clothes production from 20 to 40
Premium Economics
country can produce three cars or two televisions. Assume that Home has four workers. a. Graph the production possibilities frontier for the home country. b. What is the no‐trade relative price of cars at Home? 2. Suppose that each worker in the Foreign country can produce two cars or three TVs. Assume that Foreign also has four workers. a. Graph the production possibilities frontier for the Foreign country. b. What is the no‐trade relative price of cars in Foreign? c. Using the information provided in Problem 1 regarding Home
Premium Economics United Kingdom International trade
federal government should spend more on diabetes research. iii. Rising paper prices will increase book prices. iv. The price of bagels at Bruegger’s is too high. 3. Identify the effect of each of the following on the United States Production Possibilities Frontier (PPF). Does it shift inward‚ outward‚ or not at all? i. A decrease in the average length of annual vacations ii. An increase in immigration of foreign workers to the U.S. iii. An increase in the average retirement age iv. The
Premium Economics Opportunity cost
Economics 101 Spring 2011 Answers to Homework #1 Due 2/2/11 Directions: The homework will be collected in a box before the lecture. Please place your name‚ TA name and section number on top of the homework (legibly). Make sure you write your name as it appears on your ID so that you can receive the correct grade. Please remember the section number for the section you are registered‚ because you will need that number when you submit exams and homework. Late homework will not be accepted so make
Premium Economics Linear equation Analytic geometry
In Emily Dickinson’s “I Dwell in Possibility” she speaks of a “house” which is “fairer” than “prose”. Prose by definition is writing that is not poetry. “I dwell in Possibility- A fairer House than Prose” (Dickinson 879). What Dickinson is saying is that the possibilities she deals in i.e. Poetry‚ anything is possible‚ and poetry can be taken as anything. Without the writer comes out and says exactly what it is about the reader can draw any conclusion‚ in poetry nothing is set in stone. Whereas with
Premium
Importance of water use in the steel industry Water’s ever-growing importance in the industrial manufacturing arena has been demonstrated by an increasing concern regarding the sufficiency of both its quantity and quality for use in industrial applications. In general‚ water is used in steelmaking as a: coolant for equipment‚ furnaces‚ and intermediate steel shapes; cleansing agent to remove scale from steel products; source of steam; medium for lubricating oils and cleaning solutions;
Premium Steel Pig iron Steelmaking
another. C) not possible to produce more of one good without producing less of another good. D) producing a combination of goods. Use the following to answer question 3: 3. (Table: Coffee and Salmon Production Possibilities) Look at the table Coffee and Salmon Production Possibilities. The table shows the maximum amounts of coffee and salmon that Brazil and Alaska can produce if they just produce one good. The opportunity cost of producing 1 unit of coffee for Brazil is: A) 2 salmon. B) 1/4
Premium Supply and demand Economics Opportunity cost
Mrs. Foster stepped into the elevator and gave Miss Strangeworth a nod. Miss Strangeworth glance at her with embarrassment‚ knowing that that was the first time people had ever seen her after the operation. Without saying a word‚ she quietly turned and looked sideways. It had been two months since her transgressions circulated around the town. When she was about to sigh‚ the cart started shaking unexpectedly. Most of the elevator lights flickered and went off eventually. They could barely see each
Premium Mind Coming out The Wall