When you purchase a new pair of jeans you do so in

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Exploring Macroeconomics
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Chapter 3 / Exercise 1
Exploring Macroeconomics
Sexton
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14. When you purchase a new pair of jeans you do so in the Product market 15. 16.Which of the following is not a factor of production?
17. 18. The points outside the production possibilities frontier are Unattainable 19. 20. 21. 22. Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except produce a combination of goods that lie outside its own production possibilities frontier. 23. The primary purpose of ________ is to encourage the expenditure of funds on research and development to create new products.
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Exploring Macroeconomics
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Chapter 3 / Exercise 1
Exploring Macroeconomics
Sexton
Expert Verified
24. 25. 26. Comparative advantage means the ability to produce a good or service at a lower opportunity cost than any other producer. 27. 28. 29. 30. A production possibilities frontier with a bowed-outward shape indicates increasing opportunity costs as more and more of one good is produced. 31. 32. The term 'property rights' refers to the ability to exercise control over one's own resources within the confines of the law. 33. 34. The production possibilities frontier model shows that if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good. 35. CHAPTER 3 1. At $10 how many units will be sold? 200
2.if the price is $10 There would be a shortage of 600 units. 800-200=600 3.Which of the following describes a characteristic of a perfectly competitive market?
4. Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?
5. An increase in price of inputs would be represented by a change from S2 to S1. 6. If the product represented is a normal good, an increase in income would be represented by a change from D1 to D2
7. Which of the following would cause a decrease in the supply of peanut butter?
8. An increase in population would be represented by a change from
9. Let D= demand, S = supply, P = equilibrium price, and Q= equilibrium quantity. What happens in the market for walnuts if the Centers for Disease Control and Prevention announces that consuming a half cup of walnuts each week helps to lower bad levels of cholesterol?
10. An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in an increase in the equilibrium price of lobster; the equilibrium quantity may increase or decrease.

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