Econ 1221 Lecture Notes

# Econ 1221 Lecture Notes - Errata for the Textbook Chapter...

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Errata for the Textbook Chapter 10, page 260, 2 nd last paragraph: Replace “net exports, X = IM” with “net exports, X – IM”. Chapter 14, page 368, last line: Replace “\$5 worth of spending” with “\$15 worth of spending”. Errata for the Study Guide Chapter 2, page 30, Problem and Exercise 7: Replace all instances of “11” with “10.5”. Otherwise, the PPF of the economy is not completely linear. Chapter 2, page 36, Problem and Exercise 3.c: If Joe were to produce only cheese, he can produce 150 pounds. Replace “120 pounds” with “150 pounds”. Chapter 2, page 36, Problem and Exercise 3.d: If Joe produces only butter, he can produce up to 100 pounds. If Joe produces only cheese, he can produce up to 150 pounds. Therefore, his opportunity cost of producing one pound of butter is 1.5 pounds of cheese. Replace “1.2 pounds” with “1.5 pounds”. Chapter 2, page 36, Problem and Exercise 3.f: If Joe produces only butter, he can produce up to 100 pounds. If Joe produces only cheese, he can produce up to 150 pounds. Therefore, his opportunity cost of producing one pound of cheese is 0.667 pounds of butter. Replace “.833 pound” with “.667 pound”. Chapter 2, page 36, Problem and Exercise 3.h: Replace the answer given with “Betty has the comparative advantage in the production of butter since her opportunity cost, 4/3 pounds of cheese, is less than Joe’s opportunity cost of 1.5 pounds of cheese”. Chapter 2, page 36, Problem and Exercise 3.i: Replace the answer given with “Joe has

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Econ 1221 Lecture Notes - Errata for the Textbook Chapter...

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