data show the total production (in millions) of the only two goods produced in the countries of Carleton and Cumbria. a) What is the opportunity cost of a binocular in Carleton? b) What is the opportunity cost of a camera in Cumbria? c) If, before trade, each country was devoting half its resources to producing each product, what is the total amount they were both producing? d) If the two countries were to specialize in producing the product they do best, what would be the total amount they could produce? e) What are the total gains as a result of specialization? following graph shows the production possibilities for the economy of Esher: a) What is the total cost of producing 7 pops? b) What is the total cost of producing 4 corns? c) What is the cost of moving from point b to point c? Suppose that Esher experiences a 50% increase in the productivity of producing Pops. d) Draw in the new production possibilities curve labelled PP2. e) If Esher wants to have 6 pops, how many corn can it now have?
Difficulty: Difficult Sayre - Macroeconomics –... #135 Source: StudyGuide Topic: Mac1.8 Production Possibilities Type: Graphic 136. What is the controversy with economic growth? Difficulty: Easy Sayre - Macroeconomics –... #136 Source: Text Topic: Mac1.1 The Relevance of Economics Type: Comprehension 137. Which of the following statements describes the law of increasing costs?
Difficulty: Easy Sayre - Macroeconomics –... #139 Source: New Topic: Mac1.2 What is Economics? Type: Comprehension 140. All of the following statements, except one, are normative statements. Which is the exception? Difficulty: Easy Sayre - Macroeconomics –... #140 Source: New Topic: Mac1.2 What is Economics? Type: Comprehension 141. Resource depletion and high rates of pollution are possible results of which of the following? Difficulty: Easy Sayre - Macroeconomics –... #141 Source: New Topic: Mac1.9 Macroeconomic Goals Type: Comprehension 142. Which of the following forces choice in macroeconomics? Difficulty: Easy Sayre - Macroeconomics –... #142 Source: New Topic: Mac1.4 Scarcity, Choice and Opportunity Costs Type: Comprehension
168. Discuss the pros and cons of economic growth. Pro • Greater income which allowing consumers to purchase more and bigger goods. • Higher standard of living enabling people to enjoy more leisure time. • Increase social and political stability because dividing a growing pie is easier than dividing a shrinking pie. • Decrease in birth rate reduces the strain on the environment Con • Leads to greater environmental damage, increase stress and traffic congestion in people's daily life • Too much emphasis on material things at the expense of things that are more important for personal well-being (for example, job satisfaction) - Macroeconomics –... #168 169. Discuss the pros and cons of taking from the rich and giving to the poor. Pro • Government might be able to lower social unrest and disharmony by reducing the income gap between the rich and poor. Con • Higher taxes distort markets. • Disincentive to work hard and to take on risks Sayre - Macroeconomics –... #169 170. Define economics. Economics is a social science that studies the ways humans and societies organize themselves to make choices about the use of scarce resources, which are used to produce the goods and services necessary to satisfy human wants and needs. Sayre - Macroeconomics –... #170 171. List seven macroeconomic goals. Improved standard of living Economic growth Full employment Stable prices Viable balance of international An equitable distribution of income Manageable government debt and deficit Sayre - Macroeconomics –... #171