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Unformatted text preview: Economics 3800 Expanded key for questions 17,18 and 22b 17. Suppose that you have a total income budget of $150,000. The price of CootAid is $10 a case and
donuts are priced at S a dozen. A. Depict this budget constraint‘on the diagram below. Be sure to incorporate appropriate unit on the
x and y axes. M i “.5 Z ‘ ' in»)? a}: 2:“ ‘a 4.0“ 9f M'" {24% 3 <1
7'“ F *‘gi’rv o: ﬁts 5%“ i f 5’93??? em if is" ‘1" j ‘ it 9% i [q Mﬁ'mc i i it ' I " i; W, . i a .1 w:
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{ffV2 533m? W M. £3 {jam '3» '9 M f g? ‘° 5' : atﬂstwesftm 14" a W
Eootettg .. totesewe gimme? ewes?  ‘ Wimwmwmmiﬂ r .. 5 5}; E 3 <53 C}
3i j m ' '5’: FE f?"‘ “M {a 5" n i H K ,ﬁﬁ. no pgi’ﬁé’: {trig / La"  V‘“ M Whﬁi tit r? 5;; .J j‘m 2m
'4WWMW.WWWMWHWMMWWW. , E W  i J _ g
i. J. z to. What is the slope of the budget constraint? C: ‘M
m,— (C; {yr ~« #13“; d £52m fig/",1 0%“ Feed? 1' in: of? W.mmwm~MWMW. if? or «so «3 4. ﬁx?: w W
mwﬁtﬂ ‘ " 'v':rwm.amm,,,. owl sag .. 18. A production possibilities frontier for the country of Passal is depicted below. Let each
square represent one unit. ' '3 a. What is the opportunity cost of gaining one elephant if you are at point A. 1 k z » i i s . ‘ is 1%“ 5; a‘ Mia “$133M i 9“; E ages jigf'tﬂg’“: {r 5;? . d a: “ g,   l Wﬂﬁrzw‘f,/ Egg "" " $75} M; . "e E . \M t'ﬁiﬁ 3 “Sing”. Kt?»é§ﬁﬂ “5%., 3» “W
a A it i a ' . .2 wittit‘t‘m. . 3% at e emit»?
b. What IS the opportunity cost of gaining one eiephant if you are at pomt B? E
. t " i a t g t “‘53 “rt pi W Jr: 4”)? {If ﬂ z . r H g it I} ‘
r A o ‘ ‘ V ‘ V . i _
W r“? mm W ties"w Ewe  I 5:45?) 3%? m a E F i " hi . . K
in is?” {ioﬁiwtimiw ﬂit mpgM.) A: J? i‘ g Em." ‘4 W {gig/M it i c. Are opportunity costs constant with respect to this 9??? 7. i‘ ﬁnk
i i “very gﬂ‘ifg twee} 3&0 4"”91 ” 051‘“; it; is{wai ‘ J Wﬂ {'3 WAN WI 22. in 2013 Malaysia’s current account was 11,731,544,450 USD. b. How large was Malaysia’s current account in comparison to current levels of US GDP? That is, divide
Malaysia’s current account by the approximate level of current US GDP. Q Q Mm
mm WWW)“ l . . WW "’9 hM”"WWWWW> Mi W.“ I a ‘ #5.: m ‘92.. g" “L ; W fl: I . g C) {l {T} a 6:2 l ...
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 Spring '10
 MICHAELRYAN

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