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\"\"Please answer with simple explanations\"\" 1. The production possibilities c

ID: 2506153 • Letter: #

Question

""Please answer with simple explanations""

1.      The production possibilities curve below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy.

    Production alternative  

Product                            A B C D  E

Capital Goods               0   1   2   3  4

Consumer Goods     22  18  13  7  0

What is the total opportunity cost of producing the second unit of capital goods?

a.      4 units of consumer goods

b.      5 units of consumer goods

c.       9 units of consumer goods

d.      13 units of consumer goods

2.      The U.S. and the U.S.S.R

a.      Evolved in part from the same philosophical origins

b.      Shared Veblin as their intellectual inspiration

c.       Produced and distributed output according to the principal of relative depravation

d.      Did not share scarcity as their fundamental economic problem

3.      From the economist

Explanation / Answer

48-DECREASE IN SUPPLY

44. d. B will decrease and the demand for C will increase

43.b. Increased by 60 units

18.d. Marginal benefit is less than the marginal cost a.

16.A share of corporate stock issued by General Motors

15. d. Education and income are highly correlated d.

14.Decrease by 20 percent

12. b. Price is above the optimal price to society

11.

c. $1,500

9. b. Distribution of income according to basic resource classes, i.e., wages, rents, interest, and profITS.

8. c. A person who purchases home insurance and then is less careful

7.           b. All benefits associated with the production and use of a public good are received by the government

6. d. Equilibrium quantity will stay the same and equilibrium price will increase

5. c. Private goods are characterized by rivalry

4 b. Consumption by one person reduces the quantity available to others

3 d. The market system is unable to adapt to or to accommodate change

2

1.d. 13 units of consumer goods