Homework 1 Solutions

Homework 1 Solutions - Homework 1: Solutions Chapter 1 10....

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Homework 1: Solutions Chapter 1 10. This is not correct, because the third team played more in those games that we were either already winning or very likely to win no matter who played. 11. a. normative b. positive c. normative d. positive Chapter 2 1. False, if voluntary trade occurred each individual involved must be better off. Thus, value was created by moving the good from an individual with a less than $5000 valuation to an individual with a higher than $5000 valuation. 3. The bus fare is cheaper. They are the same cost. The airplane ticket is cheaper. 7. The nation should produce the good with the lowest opportunity cost of production. The nation should import goods for which it has a higher opportunity cost of production. International trade should raise living standard, because the total output should increase since the country with the lowest opportunity cost of producing each good is specializing in production of that good. 8.
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Homework 1 Solutions - Homework 1: Solutions Chapter 1 10....

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