Problems_Ch1-3

Problems_Ch1-3 - (doubling it), but not the maximum cotton...

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Chapter 1: Economics: Foundations and Models 4.2, pg 23 a. and d. are microeconomic questions; b. and c. are macroeconomic questions. Chapter 2: Tradeoffs, Comparative Advantage and the Market       System 1.8 a, b, c only, pg 61 a . Point E is outside the production possibility frontier, so it is unattainable. b. Points B , C , and D are on the production possibility frontier, so they are efficient. c. Point A is inside the production possibility frontier, so it is inefficient. 1.4, pg 60 a. The production possibilities frontiers in the figure are bowed to the right from the origin because of increasing marginal opportunity costs. The drought causes the production possibilities frontier to shift to the left. b. The genetic modifications would shift to the right the maximum soybean production
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Unformatted text preview: (doubling it), but not the maximum cotton production. Chapter 3: Interaction of Demand and Supply 1.5, pg 92 a. substitutes b. complements c. complements d. probably unrelated 1.7, pg 92 a. The demand curve for Big Macs will shift to the left b. There will be a movement down the demand curve for Big Macs. c. The demand curve for Big Macs will shift to the left (assuming that Big Macs and fries are complements). d. The demand curve for Big Macs will shift to the right. 2.3, pg 93 a. Change in quantity supplied: A movement up the supply curve. b. Change in supply: The supply curve shifts to the right. c. Change in supply: The supply curve shifts to the left....
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Problems_Ch1-3 - (doubling it), but not the maximum cotton...

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