The fact that there are only two goods produced in this theoretical economy, when, in reality. Macroeconomics is the study of factors that affect the entire economy. Dinah's Diner pays Sam $400 per week to work as a short-order cook. If Hi-Voltage sells for $3.75 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? demonstrate key economic concepts, Which of the following is true regarding this economic model? Check all that apply. 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. Points located outside the production possibilities frontier, such as C and D, represent output combinations that are unattainable, given current resources and technology. Final Exam Chapter 12 Flashcards | Quizlet 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. 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. Exchange rates are stable and predictable. ECO 102 Macroeconomics Unit 1 Milestone 1 Sophia Course Cons. 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. a. The following dialogue shows an excerpt from their debate: Despite their differences, with which proposition are two economists chosen at random most likely to agree? 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. plethora realization scarcity profusion, Suppose an economy produces two goods: food and machines. Households earn their income when firms purchase or rent these factors of production to use them to produce goods and services. a; an A firm's decision about the size of its new factory MICRO 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. 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. Suppose Japan produces only two goods: corn and laptops. For example, compare point F (41 million laptops and 41 million bushels of corn) with point D (41 million laptops and 75 million bushels of corn). Eastview Live | By Eastview Baptist Church | Facebook | Thursday. Uh we 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. c. Sam uses $150 to purchase air travel to Hawaii from Flyaway Airlines. b. 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. Which of the following is true regarding this economic model? A. Producing a second truck per day would require him to move to combination C, reducing his production of balls to 16 per day. Kyoko: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards. Full Document. Yoko can buy a chocolate bar, a can of drink and a packet of crisps. 4.9 (13 reviews) The following diagram presents a circular-flow model of a simple economy. C) Sandwich constructive feedback between positive comments. While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy. Full Document. Show graphically and explain how an increase in the technology used to produce computers affects this economy's production possibilities frontier. ProductionvolumeLiquidmaterialsDrymaterialsBottlesLabelsMachinesetupsMachinehoursHi-Voltage12,500bottles1,400gallons620pounds12,500bottles3labelsperbottle500setups200MHEasySlim180,000bottles37,000gallons12,000pounds180,000bottles1labelperbottle300setups3,750MH. 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 NORM 100 Which of the following is true regarding this economic model? The convers As a result of this year the society wants to produce 55 units of food and 30 machines which of the following statements is true? Housing prices rose very rapidly during 2002 to 2007. C) It provides team members an opportunity to acknowledge the assistance of another team member. Tim spends $250 to purchase necklace from Classy's Jewelry Store. What is Economics? Which of the following statements regarding economic growth is correct? When using combination D, Jacques is producing one truck and 19 balls per day. It addresses decision-making. Determine influences of aggregate supply and aggregate demand. Question: Which of the following is true regarding this economic model? The opportunity cost of buying the chocolate bar is which is trading at $50 per share. For example, under combination D, Jacques spends 2 hours producing trucks and 6 hours producing balls. 2. Which of the following is true regarding this economic model? For women aged 60 to 69, breast cancer screening significantly reduces breast cancer mortality. This PPF is not an economic model. 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. Solved Which of the following is true regarding this | Chegg.com macroc.docx - 7 Aggregate Supply and Aggregate Demand \text{Machine setups} \ldots\ldots\ldots & \text{500 setups} & \text{300 setups}\\ Therefore, spending his last 2 hours producing balls results in one additional ball. Provide examples to support your points. -The effect of an increase in the money supply on the rate of inflation, ECON 102- Problem Solving: Thinking Like an E, Alexander Holmes, Barbara Illowsky, Susan Dean, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams. b. It takes, A: The PPF's shape and its position will depend on how costly it is to keep the environment clean, that, A: The nations around the world tend to operate on the basis of the basic economic model. Yakov uses $375 to purchase air travel to Hawaii from Flyaway Airlines. While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy. You know the difficulty of remote team members forming bonds with each other. C) in order to increase food production in these circumstances without reducing machine production the economy must reduce inefficiencies. Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form. Firms, in turn, earn revenue when households buy goods and services. Show and explain why. I need help with understanding this. Raising the minimum wage reduces the number of employment opportunities for low skilled workers. I think government funding of health insurance is useful to ensure basic fairness. Suppose Alyssa earns $650 per week working as jewelry appraiser for Classy's Jewelry Store. Doctors should encourage women aged 60 to 69 to be screened for breast cancer. Suppose Crystal earns $600 per week working as a doctor for the Medical Clinic. In some markets, however, the supply of labor is determined by a union of workers. B. B Which of the following is true regarding this economic model? Note that describing a statement as positive or normative is not the same as describing it as true or false. How should you approach Kurt regarding his work? Click below link for Answer The disagreement between these economists is most likely due to differences in scientific judgements. For instance, if Japan is currently producing at point F and decides that it wants to produce more corn, it must produce fewer laptops. Consider the following production possibilities frontier model for an economy that produces only two goods: barley and tablets. z = C+I+G You decide to start each meeting with a few minutes to say, "I'd lik 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. The following dialogue shows an excerpt from their debate: Wants a. NORM The effect of a large government budget deficit on the economy's price level MACRO Economists make simplifying assumptions in all economic models in order to focus on the most important economic variables in a given situation. Suppose Japan produces two types of goods: agricultural and capital. Consider the following production possibilities frontier model for an economy that produces only two. By grouping all individuals into households and firms and all markets into markets for goods and, services and markets for factors of production, economists can model how dollars and resources flow, back and forth among agents in the economy. Answer in Macroeconomics for Michelle #95177 ECO 102 Macroeconomics Unit 1 Milestone 1 Sophia Course - Issuu You decide to start each meeting with a few minutes to say, "I'd lik Taxes are too high. Which of the following is true regarding exchange rates? Households, earn their income when firms purchase or rent these factors of production to use them to produce. 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. The opportunity cost, A: Two economies - A & B Economics is a social, If demand becomes more elastic, which of the following will happen, as demonstrated by the graph shown here? 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. 20 for any assignment or question with DETAILED EXPLANATIONS! This simple PPF model can still be used to model important economic concepts, such as opportunity cost, efficiency, feasibility, and technological change. Little Havana pays Yakov $450 per week to wait tables. . The U.S. government has shut down a number of times in recent history. C) It provides team members an opportunity to acknowledge the assistance of another team member. . a. Jack owns a convertible bond with a $1,000 face value that can be exchanged for How do you suppose employment differs in the two cases? Employers should not be restricted from outsourcing work to foreign nations. d. Less able to be fulfills Based on this model, households earn income when firms purchase factors in factor markets. The effect of government regulation on a monopolist's production decisions MICRO 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. Selena pays a storekeeper $1 for a quart of milk.b. Vaccination is a method of fighting Covid -19 Such a framework is based on values and cannot be confirmed or refuted by evidence. \text{Machine setup} \ldots\ldots\ldots & \text{Setups} & \text{20,000}\\ "What is the purpose of this? Economics is part of the humanities because it studies human decision-making. Which of the following is TRUE regarding the economic order quantity (EOQ) model? Jacques: Indeed, it's gotten crazy! an; a Wants and demands 7. Therefore, the $200 is a payment that flows from a firm to a household. 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? You can specify conditions of storing and accessing cookies in your browser. This could be a flow of dollars, inputs, or outputs. b. Control. Kyoko: You really think households would change their saving behavior enough in response to this to make a difference? 5. Raising the minimum wage increases the rate of unemployment. 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. She uses $8 to have breakfast at Dinah's Diner. It would be harder to find two randomly chosen economists who both agree with either of the other propositions. Based on this model, firms earn revenue when households purchase goods and services in product markets. Reduce the rate of inflation Jacques: I think a switch from the income tax to a consumption tax would bring growth in living standards. While many economic questions are open to debate, the field is largely in agreement on some points. At these points, it is possible to increase the production of both goods because some resources are unemployed. 42 25 shares of WUF stock, The disagreement between these economists is most likely due to difference sin scientific judgement. She uses $10 to have breakfast at Dinah's Diner. Identify key aspects of international trade. Tim uses $250 to purchase necklace from Classy's Jewelry Store. Identify the articles that correctly complete the following sentence. The fact that there are only two goods produced in this theoretical economy is a simplifying. O This PPF is not an economic model. assumption that still allows economists to demonstrate key economic concepts. an; an . According to a circular flow diagram, which of the following flows FROM government TO households? When a domestic currency depreciates, what happens to the purchases of. d. Customers demand products itive comment between constructive feedback. The disagreement between these economists is most likely due to differences in values . A) The technological advance reduced the amount of resources needed to produce 30 machines. Explain. 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. Chapter 2 Econ.docx - Which of the following is true The $450 per week Yakov earns working for Little Havana. The young person's choice maximizes lifetime welfare 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. This clearly states the thought and simplifies the understanding of economy, based on two products to be produced from same restricted resources. , 1. However, they need to be checked by the moderator before being published. A] Real gross domestic product (GDP) measures the impact of economic growth on pollution and environmental degradation. A positive statement is one that seeks to describe the world as it is. Could the shutdown affect the government budget deficit? 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. Pillmart Pharmacy (a firm) pays Tim (a household) $200 for his labor. F02000 . She uses $10 to have. 18 POS Tariffs and import quotas generally reduce economic welfare. There are two main reasons that economists tend to disagree: differences in values and differences in scientific judgments. True O This PPF is not an economic model. (D)b. Graph the production possibilities frontier for thiseconomy. Because I don't. Tariffs and import quotas generally reduce economic welfare. Capital Account 1. Course Hero is not sponsored or endorsed by any college or university. Therefore, point D must be unattainable, given current resources and technology. 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 Kyoko: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. 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. The purpose of economic models is not exactly to portray complex reality, but to produce insights into how it works. Points located inside the production possibilities frontier, such as A and B, represent inefficient output combinations. b. 0 Which of the following statements regarding economic growth is correct? Experts are tested by Chegg as specialists in their subject area. Now, suppose Jacques is currently using combination C, producing two trucks per day. 21 Wages, interest and transfer payments O The fact that there are only twe goods produced in this theoretical economy, when, in reality, economes produce many moe types goods, means this model is generally useless. a; an \text{Bottling department}\\ The following dialogue shows an excerpt from their debate: households are buyers, and firms are sellers.c. c. Money 6. Producing a third truck per day would require him to move to combination B, reducing his production of balls to 11 per day. & \text{Hi-Voltage} & \text{EasySlim}\\ Based on this model, households earn income when firms purchase factors in factor markets. Economics assumes that people, businesses and governments make good decisions last year it produced 50 units of food and 30 machines. C Try Another Version Continue Identify the correct sequence of step in the generation of an action potential. goods and services. 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. Our experts will gladly share their knowledge and help you with programming projects. She uses $9 to order a mojito cocktail at Little Havana. The output per worker increased resulting in more television sets being produced. Opportunity cost You are meeting with your new remote team for the first time. 0/40=0 Government should Impose taxes on the cigarette. 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. In this case, the economists disagree due to differences in values because they disagree about a normative issue: the extent of the moral obligation that one human or citizen has to another. You are meeting with your new remote team for the first time. Therefore, Jacques's increased ability to produce trucks increases his opportunity cost of producing balls. When the government increases taxes, rates of tax evasion increase. Consider the following production possibilities frontier model for an economy that produces only two goods: corn and smartphones. E Y Which of the following is true regarding this economic model? Indeed, one survey that 93% of economists agree with this proposition. 2/4 = 0.5 gallon of, A: PRODUCTION POSSIBILITIES FRONTIER Which of the elements of this scenario represent a flow from a household to a firm? Economists therefore adopt simplifications to explain concepts and create insights into how the real economy works. Draw a productionpossibilities frontier for a society that produces food and clothing. True breakfast at Dinah's Diner. Economics can accurately predict what the national economy will do in six months to a year. FACTOR Suppose Jacques is currently using combination D, producing one truck per day. In the circular-flow model of an economy, households own all the factors of production. 24 \text{Machine hours}\ldots\ldots\ldots & \text{200 MH} & \text{3,750 MH}\\ Course Hero is not sponsored or endorsed by any college or university. \text{Department} & \text{Driver} & \text{Cost}\\ B) Sandwich critical feedback between less critical feedback. Because point F is on Japan's production possibilities frontier, you can see that if Japan is producing 41 million laptops, it can produce at most 41 million bushels of corn. 60 An economic good or service that is scarce is one that is. , gh it was immature attempt at humor. 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. There are three certainties in this world: Death, Taxes and Homework Assignments. An economy consists of three workers: Larry, Moe,and Curly. The basic Economic problem is households are sellers, and firms are buyers.b. What is the common difference between the allocation of joint costs to ( a ) joint products and ( b ) by-products? 1 gallon of root beer u do first? How should you approach Kurt regarding his work? \text{Dry materials} \ldots\ldots\ldots & \text{620 pounds} & \text{12,000 pounds}\\ e to acknowledge In this case, the economists disagree due to differences in scientific judgments because they disagree about a factual matter: the type of policy needed to keep the economy functioning smoothly during a period of financial distress. The optimal interest rate for the Federal Reserve to target MACRO The following diagram shows its current production possibilities frontier for barley, an agricultural good, and cars, a capital good. 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. (C)r Larry spends half his time on each activity, whileMoe only washes cars and Curly only mowslawns. The government should force doctors to encourage women aged 60 to 69 to be screened for breast cancer. Households earn their income when firms purchase or rent these factors of production to use them to produce goods and services. Production of X The $250 Tim spends to purchase necklace from Classy's Jewelry Store We all laughed at the joke about_ honest man, even thou This site is using cookies under cookie policy . Macroeconomics. 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. This PPF is not an economic model. 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. Which of the elements of this scenario represent a flow from a firm to a household? Alyssa earns $650 per week working for Classy's Jewelry Store. D4001200 DepartmentMixingdepartmentLiquidmaterialsDrymaterialsUtilitiesBottlingdepartmentBottlesLabelingMachinesetupDriverGallonsPoundsMachinehoursUnitsLabelsperbottleSetupsCost$2,3046,9411,422$77,0006,52520,000. 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. Suppose that Jacques, an economist from an AM talk radio program, and Kyoko, an economist from a nonprofit organization on the West Coast, are arguing over saving incentives. From the previous analysis, you can determine that as Jacques increases his production of trucks, his opportunity cost of producing one more truck increases . At these points, it is impossible to increase the production of one good without producing less of the other. B a. b. Would you describe yourself as an extrovert or an introvert? A) Set clear expectations for each team member, with SMART goals. 1K views, 35 likes, 4 loves, 11 comments, 1 shares, Facebook Watch Videos from Ghana Broadcasting Corporation: News Hour at 7pm answered Which of the following is true regarding this economic model? * 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. 9th - 12th grade. Because the drought decreases the amount of alfalfa South Africa can produce, you should have moved the point to 20 million bushels of alfalfa per year. Y = C+I+G The following graph shows Japan's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. Every output combination on the production possibilities frontier shows an efficient output combination for Japan. Calculate how much of each service is producedunder the following circumstances, which welabel A, B, C, and D:r All three spend all their time mowing lawns. Shen uses $100 to purchase tax services from A-Plus Accountants. C.