Homework Answers
7. c) a movement from autarky to can be associated with a movement along the contract curve.
The contract curve shows the optimal points of production.
A point on the contract curve involves more production of both goods than any other points off the curve.
A point off the contract curve can have more production of one of the good than at some points on the contract curve.
8. c) A< B; C< A; B> C
The property of transitivity states that if the consumer prefers B to A and A is preferred to C, then the consumer prefers B to C.
Add Answer to:
In the Edgeworth box diagram for production 7 a. a point off the "contract curve" (or "production efficiency locus"...
11. Suppose that, in the context of the Edgeworth box diagram in production, there are constant returns to scale in...
11. Suppose that, in the context of the Edgeworth box diagram in production, there are constant returns to scale in each of the two industries and that one good is relatively labor-intensive in its production process and the other good is relatively capital-intensive in its production process. In considering this Edgeworth box diagram and the PPF that can be derived from it, a. all points on the diagonal" of the Edgeworth box diagram will have corresponding points on the PPF....
Friday Contract curve Y (rum) Core Robinson X (bread) Figure 15.6 The contract curve and the...
Friday Contract curve Y (rum) Core Robinson X (bread) Figure 15.6 The contract curve and the core. (Robinson is blue; Friday is green.) 3. Examine Figure 15.6 in the text and assume Friday and Robinson have endowment W. a. If they have identical preferences are they likely to trade from point W? b. Explain whether the move from endowment W to B is Pareto improving. c. Imagine a point C on the contract curve half way between points A and...
1. 6 marks (Chapter 16.4 Efficiency in Input Allocation) Chip Labor Auto Capital Chip Captial Auto...
1. 6 marks (Chapter 16.4 Efficiency in Input Allocation) Chip Labor Auto Capital Chip Captial Auto Labor The Edgeworth Box diagram above refers to input usage in the automobile industry and the computer chip industry. The contract curve is given by 0A0C. All points on this curve correspond to input prices being equivalent across industries. For example, the line segment AC indicates the input price ratio at point B in the two industries. Also, line segment DF indicates the input...
Could you please answer these two questions(28 & 29)? 28. The figure below shows production at...
Could you please answer these two questions(28 &
29)?
28. The figure below shows production at point A on the PPF and consumption at B on the indifference curve. How will changes in the price of Y and the price of X lead to efficiency at point C? Quantity of Y Excess supply of Y U3 U2 Excess demand for X Quantity of X 29. From the Edgeworth box below, which points indicate pareto optimality and which do not? 0,...
Question 2. Consider the following 8 bundles of goods x and y: A = (8,4) B...
Question 2. Consider the following 8 bundles of goods x and y: A = (8,4) B = (5,6) C = (5,9) D = (10,3) E =(1,4) F =(6,5) G=(2,8) H =(7,8) (a) Come up with an example of a utility function that will produce the following order of preference for the bundles, where H is most preferred, A and G are equally preferred, and E is least preferred. H , C , B , F , A = G ,...
1) A production possibilities curve- seen here assumes which of these? Enlarge Image Production Possibilities Curve...
1) A production possibilities curve- seen here assumes which of these? Enlarge Image Production Possibilities Curve Output of A) Opportunity costs are constant B) Scarcity requires economic choices. The forces of supply are greater than the forces of C) demand. Consumer and military goods can both be made at D) maximum efficiency Out IN 2) The opportunity cost of a move from point A to point Bis A) the increased production of D. B) the increased production of C. the...
2. Ali has a $7 weekly budget that he spends on songs (S, SI per download)...
2. Ali has a $7 weekly budget that he spends on songs (S, SI per download) and prosein bars (B, S1 per bar). His usility information for the two products is below from songsof a song y fTotal utiliay Marginal wtilityQuantity ofTotal utility Marginal utility of a bar from bars protein bars 10 18 14 18 21 28 30 31 a) Calculate Ali's marginal utilities and finish the filling out the table b) If Ali spends his entire budget on...
Name: ID: A Exhibit 2-10 Production possibilities curve data Capital goods Consumption goods 23 19 13...
Name: ID: A Exhibit 2-10 Production possibilities curve data Capital goods Consumption goods 23 19 13 1 11. Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must because increase; the production possibility table shows only the maximum efficiency points increase; of the law of increasing costs decrease; of the law of increasing costs decrease; of the finite nature of...
Pure Exchange Model 1. Consider a Pure Exchange Economy with two agents A and B and...
Pure Exchange Model 1. Consider a Pure Exchange Economy with two agents A and B and two goods X and Y in which each agent acts competitively. Their preferences are given by the following utility function U(X,Y)=X13*Y23 Their initial endowments are as follows W=(5,20) w- (25,10) a) Calculate the demand functions for Good X and Good Y for each agent. b) State the equilibrium conditions for this economy. c) Using these conditions and the demand functions found in part a)...
21. A positive income elasticity of demand coefficient indicates that a. a product is an...
21. A positive income elasticity of demand coefficient indicates that a. a product is an inferior good b. two products are substitute goods c. two products are complementary goods d. a product is a normal good 22. All the combinations of two products that will yield the same total utility to a consumer are reflected in a. the budget line b. the marginal rate of substitution c. an indifference curve d. the...
11. Suppose that, in the context of the Edgeworth box diagram in production, there are constant returns to scale in each of the two industries and that one good is relatively labor-intensive in its production process and the other good is relatively capital-intensive in its production process. In considering this Edgeworth box diagram and the PPF that can be derived from it, a. all points on the diagonal" of the Edgeworth box diagram will have corresponding points on the PPF....
Friday Contract curve Y (rum) Core Robinson X (bread) Figure 15.6 The contract curve and the core. (Robinson is blue; Friday is green.) 3. Examine Figure 15.6 in the text and assume Friday and Robinson have endowment W. a. If they have identical preferences are they likely to trade from point W? b. Explain whether the move from endowment W to B is Pareto improving. c. Imagine a point C on the contract curve half way between points A and...
1. 6 marks (Chapter 16.4 Efficiency in Input Allocation) Chip Labor Auto Capital Chip Captial Auto Labor The Edgeworth Box diagram above refers to input usage in the automobile industry and the computer chip industry. The contract curve is given by 0A0C. All points on this curve correspond to input prices being equivalent across industries. For example, the line segment AC indicates the input price ratio at point B in the two industries. Also, line segment DF indicates the input...
Could you please answer these two questions(28 &
29)?
28. The figure below shows production at point A on the PPF and consumption at B on the indifference curve. How will changes in the price of Y and the price of X lead to efficiency at point C? Quantity of Y Excess supply of Y U3 U2 Excess demand for X Quantity of X 29. From the Edgeworth box below, which points indicate pareto optimality and which do not? 0,...
1) A production possibilities curve- seen here assumes which of these? Enlarge Image Production Possibilities Curve Output of A) Opportunity costs are constant B) Scarcity requires economic choices. The forces of supply are greater than the forces of C) demand. Consumer and military goods can both be made at D) maximum efficiency Out IN 2) The opportunity cost of a move from point A to point Bis A) the increased production of D. B) the increased production of C. the...
2. Ali has a $7 weekly budget that he spends on songs (S, SI per download) and prosein bars (B, S1 per bar). His usility information for the two products is below from songsof a song y fTotal utiliay Marginal wtilityQuantity ofTotal utility Marginal utility of a bar from bars protein bars 10 18 14 18 21 28 30 31 a) Calculate Ali's marginal utilities and finish the filling out the table b) If Ali spends his entire budget on...
Name: ID: A Exhibit 2-10 Production possibilities curve data Capital goods Consumption goods 23 19 13 1 11. Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must because increase; the production possibility table shows only the maximum efficiency points increase; of the law of increasing costs decrease; of the law of increasing costs decrease; of the finite nature of...
Pure Exchange Model 1. Consider a Pure Exchange Economy with two agents A and B and two goods X and Y in which each agent acts competitively. Their preferences are given by the following utility function U(X,Y)=X13*Y23 Their initial endowments are as follows W=(5,20) w- (25,10) a) Calculate the demand functions for Good X and Good Y for each agent. b) State the equilibrium conditions for this economy. c) Using these conditions and the demand functions found in part a)...
Most questions answered within 3 hours.
-
A 1,150 lumen light bulb is placed 37 cm in front of a mirrored
wall, whose...
asked 6 minutes ago -
Given that z is a standard normal random variable, compute the
following probabilities (to 4 decimals)....
asked 12 minutes ago -
You begin preparation of the calibration curve to measure
absorbance vs concentration of FeSCN2+. To do...
asked 30 minutes ago -
When you speak after breathing helium, in which the speed of
sound is much greater than...
asked 22 minutes ago -
3. Stock Valuation: You are the CEO of Under Armour, Inc. and
are thinking about how...
asked 27 minutes ago -
Choose a brand. Critique the brand in terms of its brand
positioning, brand identity and brand...
asked 29 minutes ago -
A vertical curve has grades G1 = 2.8% (downgrade) and
G2 = 2.2 (upgrade) Assume design...
asked 30 minutes ago -
(a) Derive planar density expressions for BCC
(110) plane in terms of the atomic radius R....
asked 25 minutes ago -
I have this problem now and I am not sure what we are exactly
supposed to...
asked 31 minutes ago -
Use the following set of observed frequencies to test the
independence of the two variables. Variable...
asked 54 minutes ago -
Two kg of ice at -15 °C are placed in a 2 kg bath of water...
asked 54 minutes ago -
Describe the following with suitable
examples.
1- Security Policy Heterogeneity
2-Security Model Heterogeneity
3-Security Mechanism Heterogeneity...
asked 55 minutes ago