Foundations of Business, 7th Edition Solution Manual by William M. Pride, All Chapters 1 - 47, Complete Verified Latest Version

Solution Manual
Foundations of Business 7th Edition

by William M. Pride, All chapter 1 - 47

, Solution Manual
Foundations of Business 7th Edition

by William M. Pride, All chapter 1 - 47


Chapter 1 a




End of Chapter Questions
a a a




QuizaYourself

1. Scarcityaimpliesathatatheaallocationadecisionachosenabyasocietyacan
a) notamakeamoreaofaanyaoneagood.
b) alwaysamakeamoreaofaanyagood.
c) typicallyamakeamoreaofaoneagoodabutaatatheaexpenseaofamakingalessaofaa
nother.
d) alwaysamakeamoreaofaallagoodsasimultaneously.aExpla
nation:aScarcityaimpliesathatachoicesainvolveatrade-offs.

AACSB:aReflectiveaThinkingaAccessib
ility:aKeyboardaNavigationaBlooms:aUn
derstand
Difficulty:a02aMediumaGrade
able:aautomaticaLearningaObje
ctive:a01-01
Topic:aEconomicsaandaOpportunityaCost

2. Aaproductionapossibilitiesafrontieraisaaasimpleamodelaof
a) allocatingascarceainputsatoatheaproductionaofaalternativeaoutputs.
a) priceaandaproduction/consumptionainaaamarket.
b) theacostaofaproducingagoods.
c) theanumberaofainputsarequiredatoaproduceavaryingalevelsaofaoutput.a Explanation:a
Theaproductionapossibilitiesafrontierashowsatheaquantityaofatwoagoodsathatacanabeaproduce
d.aItaimpliesathatascarcityarequiresathatachoicesabeamadeaasatoahowatoausearesources.

AACSB:aReflectiveaThinkingaAccessib
ility:aKeyboardaNavigationaBlooms:aUn
derstand
Difficulty:a02aMediumaGrade
able:aautomaticaLearningaObje

, Solution Manual
Foundations of Business 7th Edition

by William M. Pride, All chapter 1 - 47
ctive:a01-01
Topic:aModelingaOpportunityaCostaUsingatheaProductionaPossibilitiesaFrontier

, Solution Manual
Foundations of Business 7th Edition

by William M. Pride, All chapter 1 - 47
3. Theaunderlyingareasonathatathereaareaunattainableapointsaonaaaproductionapossibilitiesafr
ontieraisathatathere
a. isagovernment.
b. areaalwaysachoicesathatamustabeamade.
c. areascarcearesourcesawithinaaafixedalevelaofatechnology.
d. isaunemploymentaofaresources.
Explanation:aTheapointsaoutsideatheaproductionapossibilitiesafrontieraareaunattainable.aThisa
meansathatacurrentlyaavailablearesourcesaandatechnologyaareainsufficientatoaproduceaamount
sagreaterathanathoseaillustratedaonatheafrontier.aOnaaagraph,aeverythingabeyondatheafrontieraisa
unattainable.

AACSB:aReflectiveaThinkingaAccessib
ility:aKeyboardaNavigationaBlooms:aRe
member
Difficulty:a01aEasyaGradeable
:aautomaticaLearningaObjectiv
e:a01-01
Topic:aModelingaOpportunityaCostaUsingatheaProductionaPossibilitiesaFrontier

4. Theaunderlyingareasonaproductionapossibilitiesafrontiersaarealikelyatoabeabowedaouta(r
atherathanalinear)aisabecause
a. choicesahaveaconsequences.
b. thereaareaalwaysaopportunityacosts.
c. somearesourcesaandapeopleacanabeabetterausedaproducingaoneagoodaratherat
hanaanother.
d. thereaisaalwaysasomealevelaofaunemployment.
Explanation:aIfatheaproductionapossibilitiesafrontieraisanotaaalineabutaisabowedaoutaawayafroma
theaorigin,athenaopportunityacostaisaincreasing.aTheareasonaforathisaisathataasaweaaddamoreares
ourcesatoatheaproductionaof,aforaexample,apizza,aweaareausingafeweraresourcesatoaproduceaso
da.aCompoundingathataproblem,aataeachastageaasaweatakeathearesourcesaawayafromasodaaanda
putathemaintoapizza,aweaareamovingaworkersawhoaareaworseaatapizzaaproductionaandabetteraata
sodaaproductionathanathoseamovedainatheapreviousastage.aThisameansathatatheaincreaseainapizz
aaproductionaisadiminishingaandathealossainasodaaproductionaisaincreasing.aAnaeconomistawou
ldacallathisaanaexampleaofaincreasingaopportunityacost.aIfatheaproductionapossibilitiesafrontier
aisaaastraightalineathataisanotabowedaoutaawayafromatheaorigin,athenaopportunitya costaisaconsta

nt.

AACSB:aKnowledgeaApplicationaAcce