Opportunity cost of producing a capital good

Assignment Help Macroeconomics
Reference no: EM131053887

1. What is the opportunity cost of producing a capital good such a new road?

2. In economic terminology, what is the meaning of investment?

3. How does an individual know whether or not an investment in education is worthwhile?

4. Define opportunity cost. Given the definition of opportunity cost, explain what is meant by the statement "There is not such thing as a free lunch."

5. Kathy and Amy paint pictures and do caricatures to sell to tourists. In one day, Kathy can either paint two pictures or do four caricatures. In one day, Amy can either paint three pictures or do three caricatures. For both Kathy and Amy, what is the opportunity cost of painting one picture? Who has the comparative advantage in painting pictures and who has the comparative advantage in doing caricatures? How might they be able to increase their total output?

6. Use a graph and comment on the following statement: "If an economy is producing inside its production possibilities frontier, it could possibly produce more of one good without giving up any of the other."

Reference no: EM131053887

Questions Cloud

What is your acceleration going down the hill : What is your acceleration bottoming out at the bottom of the hill? Calculate your final velocity after going going down the hill (before experiencing the second acceleration that was calculated).
How many times would we have to perform a fetch : That is, the reorganization cost and subsequent search cost are less than the search cost before reorganization. Support your answer. Assume s = 16 ms, rd = 8.3 ms, and btt = 1 ms.
Monthly linear production possibility frontier : France and Poland each have one worker whose monthly linear Production Possibility Frontier indicates the following production possibilities:
Security threats to mobile devices and countermeasures : Select a topic from the list and conduct research (based on literature, at least three recent research papers) and prepare a summary report with brief supportive descriptions to post on the forum/blog
Opportunity cost of producing a capital good : 1. What is the opportunity cost of producing a capital good such a new road? 2. In economic terminology, what is the meaning of investment?
What is the effect of tylers proposed change on income : Who are the stakeholders in this situation and is the proposed change in asset life unethical, or is it simply a good business practice by an astute president?
Determine the type of information needed in the file header : Write program code to access individual fields of records under each of the following circumstances. For each case, state the assumptions you make concerning pointers, separator characters, and so on.
Explain elasticity of demand : Explain elasticity of demand. Please present a simple example of this property.
Dollar increase in investment then the multiplier : If C=100 + (2/3)DI, How much will saving increase after a permanent tax cut of $600 billion? If the shift in the C+ I + (X-IM) was caused by an 80 dollar increase in investment then the multiplier is?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd