{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

answerstohomework1spring2006 - Economics 102 Spring 2006...

This preview shows pages 1–2. Sign up to view the full content.

Economics 102 Spring 2006 Answers to Homework #1 1. Substitute x = 4 into y = ½ x-1. This shows y=1 so the desired line passes through (4,1). Similarly, using the second equation, the line passes through (6,4). So the slope of our line is ∆y/∆x = 3/2 The y-intercept, b, can be found by entering a point into the equation y = 3/2 x +b 1 = (3/2)*4 + b b = -5 So the solution is y = 3/2 x – 5 2. a. positive b. positive c. normative 3. Glock should specialize in guns because their opportunity cost of producing guns is less than the Crock’s opportunity cost of producing guns. Glock has a comparative advantage in producing guns. Similarly, the country of Crock should specialize in butter since they have a comparative advantage in producing butter. 4. a. 5, 1/5 b. 4, ¼

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

answerstohomework1spring2006 - Economics 102 Spring 2006...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online