Question 9 Which of the following is/are the characteristic(s) of a household? [I]: It represents all the people who live together and who make joint economic decisions. [II]: In a mixed economy, most of the factors of production are owned by households. [III]: Households largely determine what goods and services are produced. a) [l] and [II] only b) [l] and [III] only c) [II] and [III] only d) [1], [II] and [III]
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- Which of the following is/are the characteristic(s) of a household? [I]: It represents all the people who live together and who make joint economic decisions. [II]: In a mixed economy, most of the factors of production are owned by households. [III]: Households largely determine what goods and services are produced. OA. [I] and [III] only OB. [], [1] and [III] OC. [II] and [] only OD. [I] and [II] only] Alex and Mitch are two farmers who grow vegetables on common land. Each farmer gets a benefit from the seeds that he plants, but the overall size and quality of the individual vegetables decreases as the number of seeds planted increases (since each vegetable has less room to grow and gets a smaller share of nutrients from the soil). If SA represents the total number of seeds planted by Alex and SM is the total number planted by Mitch, then the total benefit to Alex will be as follows: SA (90-SA-SM), or 90SA SA2-SASM. The marginal benefit to Alex from planting additional seeds is, therefore, equal to 90 - 2SA - SM- Assuming the marginal cost of planting is zero, the best-response function that gives the optimal number of seeds Alex should plant, as a function of the number of seeds Mitch chooses to plant, is represented by • Use the blue line (circle symbol) to plot Alex's best-response function (BRF) on the following graph, with the total number of seeds he plants on the vertical…Question 9 Which of the following is/are the characteristic(s) of a household? [i]: It represents all the people who live together and who make joint economic decisions. [ii]: In a mixed economy, most of the factors of production are owned by households. [iii]: Households largely determine what goods and services are produced. a) [i] and [ii] only b) [i] and [iii] only c) [ii] and [iii] d) [i] ,[ii] and [iii]
- Q/ Country X and Country Y are neighbours. Both Country X and Country Y can produce two goods: food and clothing. In one week, Country X can produce 4,400 clothing units or 2,200 food units, or a mix of the two. In one week, Country Y can produce 5,000 clothing units or 2,000 food units, or a mix of the two.For both Country X and Country Y, their individual trade-offs between clothing units and food units are constant, regardless of how they allocate their time. Currently, Country X produces 2,400 clothing units and 1,000 food units per week while Country Y produces 2,500 clothing units and 1,000 food units per week. c. Which country has a comparative advantage in food production? Which country has acomparative advantage in clothing production? Illustrate your answer using the PPC and showall the calculations. d. Should Country X and Country Y specialize and trade with one another? Why?3. A skilled carpenter named B can make a chair in five hours. It would take me eight hours to make a chair. B is skilled also at preparing tax returns for people. B can prepare a tax return in thirty minutes. It would take me an hour to prepare a tax return. If we want to make two chairs and prepare tax returns for ten people, then how can we divide the work so that we finish it in the least amount of time? Answers: B should make one chair and prepare 9 tax returns. I should make one chair and prepare 1 tax return. B should prepare the ten tax returns and I should make the two chairs. B should make the two chairs and I should prepare the ten tax returns. B should make both chairs and prepare all ten tax returns, because B can do both faster than I can.Table 1: Production Capacity of COVID-FREE LAND.Toilet Rolls Sanitizers30,000 028,000 1,00024,000 2,00018,000 3,00010,000 4,0000 5,000Use information in Table 1 above to answer the following questions: In your own words, while making use of the graph that you have created in part a, explain what the PPF is. Cleary state all assumptionsand properties of the PPF.
- 1.1 Compare and contrast the terms Production Economics and Agricultural Production Economics and further describe economic theories that apply to Production Economics.The table below presents production schedule of apples and bananas in the country of mistania - assume that these are the only two goods that Mistania produces. Each row represents a specific set of apples and bananas that Mistania could produce. Suppose Mistania was currently at Senario C, producing 10 bananas and 80 apples. According to the data in this table, if Mistania wanted to produc 1 more banana, how many fewer apples will it need to produce? Scenario Bananas Apples A 0 100 B 5 90 C 10 80 D 15 70 E 20 60The graph below shows production possibilities frontiers for Cornelius and David, two priests that aid the Mondoshawan race. David is Cornelius' apprentice, and they each spend their time either deciphering old prophecies or developing plans to save the world (which comes in handy later). Use this information to answer the following 3 questions. Plans 10 8 7 6 5 4 3 2 1 0 0 Cornelius David 1 2 3 4 5 6 7 10 8 9 Translations 2. (Cornelius and David) If David and Cornelius engage in trade, which of the following points is both feasible and efficient in production? a. 18 translations and 14 plans. b. 10 translations and 4 plans. c. 5 translations and 11 plans. d. 9 translations and 9 plans.
- Two important industries on the island of Bermuda are fishing and tourism.According to data from the Food and Agriculture Organization of the United Nationsand the Bermuda Department of Statistics, in 2009 the 306 registered fishermen inBermuda caught 387 metric tons of marine fish. And the 2,719 people employed byhotels produced 554,400 hotel stays (measured by the number of visitor arrivals).Suppose that this production point is efficient in production. Assume also that theopportunity cost of 1 additional metric ton of fish is 2,000 hotel stays and that thisopportunity cost is constant (the opportunity cost does not change).a. If all 306 registered fishermen were to be employed by hotels (in addition to the2,719 people already working in hotels), how many hotel stays could Bermudaproduce?Firms Markets for Goods and Services Markets for Factors of Production Households Which of the following is true regarding this economic model? O While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy. O Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling how dollars and resources move throughout an economy. Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. Because it does not take into account the role of government, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy.As a result of the North American Free Trade Agreement (NAFTA), trade restrictions between the United States and Mexico were eased and cross-border trade increased. According to Stolper-Samuelson theorem, which of the following groups of people most likely gain from NAFTA? 1) Highly skilled people in Mexico 2) Unskilled people in U.S. 3) Capital owners in Mexico 4) Unskilled people in Mexico