ECON 2100 - Ch. 3 HW
with complete verified
solutions
a, b, c - answer Which point(s) demonstrates productive efficiency?
d - answer At which point on the graph is it possible to produce more capitol
goods without reducing the quantity of consumer goods that are also
produced?
c - answer A farmer produces both beans and corn on her farm. If she must
give up 16 bushels of corn to be able to get 6 bushels of beans, then her
opportunity cost of 1 bushel of beans is ______________
a) 0.38 bushels of corn
b) 16.00 bushels of corn
c) 2.67 bushels of corn
d) 2.99 bushels of corn
2.67 bushels of corn, 6 bushels of beans, opportunity cost - answer "A farmer
produces both beans and corn on her farm. If she must give up 16 bushels of
corn to be able to get 6 bushels of beans, then her opportunity cost of 1
bushel of beans is ______________"
According to the question, the farmer can produce 16 bushels of corn or 6
bushels of beans, if she allocates all of her resources to each one of them. As
a result, to produce 16 bushels of corn, she has to give up producing _
_______ of ________. Hence, each bushel of corn would have an ____________
_______ of 16/6 or 2.67 bushels of corn.
, increases, factor of production, shift, more, more, growth - answer When
several new factories are built, capital (a factor of production), ---increases or
decreases-?
An increase in a _______ of _____________ will cause the PPF to _______
outward, away from the origin because it can now produce ______ minivans
and ______ SUVs.
This is an example of economic ___________ because the economy can
produce more of ALL goods.
Economic contraction - answer _____________ ___________ refers to an
economy, for whatever reason, producing fewer goods and services than it
previously could.
Economic stagnation - answer _____________ ___________ refers to an economy
which is neither increasing nor decreasing its production possibilities.
economic recession - answer An ___________ ___________ occurs when an
economy experiences an extended period of contraction of shrinkage.
changes in the economy, more, expands, upward, remain constant - answer
"Below is the production possibilites frontier for Shlick, whose main products
are pickles and razors.
Suppose a discovery is made that adding lemon juice to the vinegar not only
improves the pickle's flavor, but also allows the pickling process to occur
faster. Please shift the production possibilities frontier accordingly."
The production possibilities frontier shows trade-offs between the output of
two different goods. Over time, the production possibilities frontier can can
change as there are __________ in ___ ___________.
For example, a technological change here in the pickling industry allows
_____ pickles to be produced at any given time, which ________ Shlick's
opportunity set. To reflect Shlick's increased capacity for making pickles, the
vertical intercept of the production possibilities frontier should be shifted
_________. At any number of razors, Shlick can now produce more pickles. The
with complete verified
solutions
a, b, c - answer Which point(s) demonstrates productive efficiency?
d - answer At which point on the graph is it possible to produce more capitol
goods without reducing the quantity of consumer goods that are also
produced?
c - answer A farmer produces both beans and corn on her farm. If she must
give up 16 bushels of corn to be able to get 6 bushels of beans, then her
opportunity cost of 1 bushel of beans is ______________
a) 0.38 bushels of corn
b) 16.00 bushels of corn
c) 2.67 bushels of corn
d) 2.99 bushels of corn
2.67 bushels of corn, 6 bushels of beans, opportunity cost - answer "A farmer
produces both beans and corn on her farm. If she must give up 16 bushels of
corn to be able to get 6 bushels of beans, then her opportunity cost of 1
bushel of beans is ______________"
According to the question, the farmer can produce 16 bushels of corn or 6
bushels of beans, if she allocates all of her resources to each one of them. As
a result, to produce 16 bushels of corn, she has to give up producing _
_______ of ________. Hence, each bushel of corn would have an ____________
_______ of 16/6 or 2.67 bushels of corn.
, increases, factor of production, shift, more, more, growth - answer When
several new factories are built, capital (a factor of production), ---increases or
decreases-?
An increase in a _______ of _____________ will cause the PPF to _______
outward, away from the origin because it can now produce ______ minivans
and ______ SUVs.
This is an example of economic ___________ because the economy can
produce more of ALL goods.
Economic contraction - answer _____________ ___________ refers to an
economy, for whatever reason, producing fewer goods and services than it
previously could.
Economic stagnation - answer _____________ ___________ refers to an economy
which is neither increasing nor decreasing its production possibilities.
economic recession - answer An ___________ ___________ occurs when an
economy experiences an extended period of contraction of shrinkage.
changes in the economy, more, expands, upward, remain constant - answer
"Below is the production possibilites frontier for Shlick, whose main products
are pickles and razors.
Suppose a discovery is made that adding lemon juice to the vinegar not only
improves the pickle's flavor, but also allows the pickling process to occur
faster. Please shift the production possibilities frontier accordingly."
The production possibilities frontier shows trade-offs between the output of
two different goods. Over time, the production possibilities frontier can can
change as there are __________ in ___ ___________.
For example, a technological change here in the pickling industry allows
_____ pickles to be produced at any given time, which ________ Shlick's
opportunity set. To reflect Shlick's increased capacity for making pickles, the
vertical intercept of the production possibilities frontier should be shifted
_________. At any number of razors, Shlick can now produce more pickles. The
