Solution Manual for Foundations of Business 7th Edition by William M. Pride

Solution Manual
Foundations of Business 7th Edition

By William M. Pride, All chapter 1 - 47Q

,ChapterQ1
EndQofQChapterQQuestions
QuizQYourself

1. ScarcityQimpliesQthatQtheQallocationQdecisionQchosenQbyQsocietyQcan
a) notQmakeQmoreQofQanyQoneQgood.
b) alwaysQmakeQmoreQofQanyQgood.
c) typicallyQmakeQmoreQofQoneQgoodQbutQatQtheQexpenseQofQma
kingQlessQofQanother.
d) alwaysQmakeQmoreQofQallQgoodsQsimultaneously.
QExplanation:QScarcityQimpliesQthatQchoicesQinvolveQtrad
e-offs.

AACSB:QReflectiveQThinkingQAcce
ssibility:QKeyboardQNavigationQBloo
ms:QUnderstand
Difficulty:Q02QMediumQGra
deable:QautomaticQLearning
QObjective:Q01-01
Topic:QEconomicsQandQOpportunityQCost

2. AQproductionQpossibilitiesQfrontierQisQaQsimpleQmodelQof
a) allocatingQscarceQinputsQtoQtheQproductionQofQalternativeQoutputs.
a) priceQandQproduction/consumptionQinQaQmarket.
b) theQcostQofQproducingQgoods.
c) theQnumberQofQinputsQrequiredQtoQproduceQvaryingQlevelsQofQoutput.Q E
xplanation:QTheQproductionQpossibilitiesQfrontierQshowsQtheQquantityQofQtwoQgo
odsQthatQcanQbeQproduced.QItQimpliesQthatQscarcityQrequiresQthatQchoicesQbeQm
adeQasQtoQhowQtoQuseQresources.

AACSB:QReflectiveQThinkingQAcce
ssibility:QKeyboardQNavigationQBloo
ms:QUnderstand
Difficulty:Q02QMediumQGra
deable:QautomaticQLearning
QObjective:Q01-01
Topic:QModelingQOpportunityQCostQUsingQtheQProductionQPossibilitiesQFrontier

,3. TheQunderlyingQreasonQthatQthereQareQunattainableQpointsQonQaQproductionQpo
ssibilitiesQfrontierQisQthatQthere
a. isQgovernment.
b. areQalwaysQchoicesQthatQmustQbeQmade.
c. areQscarceQresourcesQwithinQaQfixedQlevelQofQtechnology.
d. isQunemploymentQofQresources.
Explanation:QTheQpointsQoutsideQtheQproductionQpossibilitiesQfrontierQareQunattaina
ble.QThisQmeansQthatQcurrentlyQavailableQresourcesQandQtechnologyQareQinsufficien
tQtoQproduceQamountsQgreaterQthanQthoseQillustratedQonQtheQfrontier.QOnQaQgraph,
QeverythingQbeyondQtheQfrontierQisQunattainable.

AACSB:QReflectiveQThinkingQAcce
ssibility:QKeyboardQNavigationQBloo
ms:QRemember
Difficulty:Q01QEasyQGradea
ble:QautomaticQLearningQO
bjective:Q01-01
Topic:QModelingQOpportunityQCostQUsingQtheQProductionQPossibilitiesQFrontier

4. TheQunderlyingQreasonQproductionQpossibilitiesQfrontiersQareQlikelyQtoQbeQb
owedQoutQ(ratherQthanQlinear)QisQbecause
a. choicesQhaveQconsequences.
b. thereQareQalwaysQopportunityQcosts.
c. someQresourcesQandQpeopleQcanQbeQbetterQusedQproducingQoneQgo
odQratherQthanQanother.
d. thereQisQalwaysQsomeQlevelQofQunemployment.
Explanation:QIfQtheQproductionQpossibilitiesQfrontierQisQnotQaQlineQbutQisQbowedQo
utQawayQfromQtheQorigin,QthenQopportunityQcostQisQincreasing.QTheQreasonQforQthi
sQisQthatQasQweQaddQmoreQresourcesQtoQtheQproductionQof,QforQexample,Qpizza,Q
weQareQusingQfewerQresourcesQtoQproduceQsoda.QCompoundingQthatQproblem,QatQe
achQstageQasQweQtakeQtheQresourcesQawayQfromQsodaQandQputQthemQintoQpizza,Q
weQareQmovingQworkersQwhoQareQworseQatQpizzaQproductionQandQbetterQatQsodaQ
productionQthanQthoseQmovedQinQtheQpreviousQstage.QThisQmeansQthatQtheQincreas
eQinQpizzaQproductionQisQdiminishingQandQtheQlossQinQsodaQproductionQisQincreasi
ng.QAnQeconomistQwouldQcallQthisQanQexampleQofQincreasingQopportunityQcost.QIf
QtheQproductionQpossibilitiesQfrontierQisQaQstraightQlineQthatQisQnotQbowedQoutQaw
ayQfromQtheQorigin,QthenQopportunityQcostQisQconstant.

AACSB:QKnowledgeQApplicationQA
ccessibility:QKeyboardQNavigationQB
looms:QRemember
Difficulty:Q01QEasyQGradea
ble:QautomaticQLearningQO
bjective:Q01-02
Topic:QAttributesQofQtheQProductionQPossibilitiesQFrontier

, 5. SupposeQyouQwereQmodelingQtheQimpactQofQtheQintroductionQofQcomputerQa
utomationQintoQmanufacturingQonQaQproductionQpossibilitiesQfrontierQ(PPF)QwithQ
twoQmanufacturedQgoodsQonQtheirQrespectiveQaxes.QItQwouldQbeQmoreQlikelyQtha
tQtheQresultQwouldQbeQ .
a) generalizedQgrowthQwithQtheQPPFQmovingQbothQupQandQtoQtheQright.
b) specializedQgrowthQwithQtheQPPFQmovingQbothQupQandQtoQtheQright.
c) generalizedQgrowthQwithQtheQPPFQjustQmovingQupQandQnotQtoQtheQright.
d) specializedQgrowthQwithQtheQPPFQjustQmovingQupQandQnotQtoQtheQright.
QExplanation:QComputerQautomationQisQaQgeneralQimprovementQinQtechnologyQs
oQitQwouldQimproveQallQmanufacturing.QAsQaQresult,QitQwouldQresultQinQgeneral
izedQgrowthQandQmoveQtheQPPFQbothQupQandQtoQtheQright.

AACSB:QKnowledgeQApplicationQA
ccessibility:QKeyboardQNavigationQB
looms:QRemember
Difficulty:Q01QEasyQGradea
ble:QautomaticQLearningQO
bjective:Q01-
03QTopic:QEconomicQGrow
th

6. TheQoptimizationQassumptionQsuggestsQthatQpeopleQmake
a. irrationalQdecisions.
b. unpredictableQdecisions.
c. decisionsQtoQmakeQthemselvesQasQwellQoffQasQpossible.
d. decisionsQwithoutQthinkingQveryQhard.
Explanation:QTheQoptimizationQassumptionQsuggestsQthatQtheQpersonQinQquestionQi
sQtryingQtoQmaximizeQsomeQobjective.QConsumersQareQassumedQtoQbeQmakingQd
ecisionsQthatQmaximizeQtheirQhappinessQsubjectQtoQaQscarceQamountQofQmoney.

AACSB:QReflectiveQThinkingQAcce
ssibility:QKeyboardQNavigationQBloo
ms:QRemember
Difficulty:Q01QEasyQGradea
ble:QautomaticQLearningQO
bjective:Q01-01
Topic:QThinkingQEconomically