User Account

All Pages

What are the key elements of the scientific method

Assignment Help Microeconomics
Reference no: EM132154813

1. What are the key elements of the scientific method and how does this method relate to economic principles and laws?

2. Suppose you won $15 on a Lotto Canada  ticket at the local 7-Eleven and decided to spend all the winnings on candy bars and bags of peanuts.  The price of candy bars is $.75 and the price of peanuts is $1.50.

a.Construct a table showing the alternative combinations of the two products that are available.

b.Plot the data in your table as a budget line in a graph.  What is the slope of the budget line?  What is the opportunity cost of one more candy bar?  Of one more bag of peanuts?  Do these opportunity costs rise, fall, or remain constant as each additional unit of the product is purchased.

c.How, in general, would you decide which of the available combinations of candy bars and bags of peanuts to buy?

d.Suppose that you had won $30 on your ticket, not $15.  Show the $30 budget line in your diagram.  Why would this budget line be preferable to the old one?

 

3. Below is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts):

Type of Production Production Alternatives

A B C D E

Automobiles

Forklifts 0

30 2

27 4

21 6

12 8

0

 

a.Show these data graphically.  Upon what specific assumptions is this production possibilities curve based?

b.If the economy is at point C, what is the cost of one more automobile?  Of one more forklift?  Explain how the production possibilities curve reflects the law of increasing opportunity costs.

c.If the economy characterized by this production possibilities table and curve were producing 3 automobiles and 20 fork lifts, what could you conclude about its use of available resources?

d.What would production at a point outside the production possibilities curve indicate?  What must occur before the economy can attain such a level of production?

4. The production possibilities curve below shows the hypothetical relationship between the production of guns (national defense) and butter (social goods) in an economy.

Combination

Guns Butter

A 0 4

B 14 3

C 26 2

D 36 1

E 44 0

 

(a) What is the marginal opportunity cost of producing the second unit of butter?

(b) What is the total opportunity cost of producing the second unit of butter?

(c) What is the marginal opportunity cost of producing the third unit of butter?

(d) What is the total opportunity cost of producing the third unit of butter?

 

5. A production possibilities table for two products, grain and airplanes, is found below.  Usual assumptions regarding production possibilities are implied.  Grain is measured in metric tons and airplanes are measured in units of 1,000.

(a)  Using the graph construct a production possibilities curve from this information placing grain on the vertical axis and airplanes on the horizontal axis.

(b) What is the opportunity cost of producing the first unit of airplanes?  The marginal opportunity cost of producing the fourth unit of airplanes?

Grain Airplanes

Combination (metric tons) (l,000s)

 

A 0 7

B 14 6

C 26 5

D 36 4

E 44 3

F 50 2

G 54 1

H 56 0

 

6. What is the economic rationale for the law of increasing costs?

7. In the following graph, explain the relationship between marginal cost and marginal benefit at 1 million units of output, 2 million units of output, and 3 million units of output for the production of computers.  In your explanation discuss the overallocation of resources, underallocation of resources, and optimal allocation of resources for the production of computers.

 

 

 

 

 

 

Reference no: EM132154813

Questions Cloud

Different forms of power or influence tactics : Do you think women natureally use different forms of power or influence tactics? Is Holmes showing this in her work?
Detailed explanation on the pros and cons : Write a very detailed explanation on the Pros and Cons of Starting a Company in the Modern Market?
Supporting any negotiations with the union : Which of the following goals would Leroy most likely be expected to work toward in supporting any negotiations with the union?
About ethical policies of responsibility : What have you learned about ethical policies of responsibility and the interrelationship between corporate governance and corporate social responsibility?
What are the key elements of the scientific method : What are the key elements of the scientific method and how does this method relate to economic principles and laws
Name some marketing techniques and styles : Name some marketing techniques and styles that you have encountered that demonstrate many of the strongpoints we learned in this course.
Marketing plan for fictional start-up company : During this course, you have compiled a marketing plan for your fictional start-up company. Share the most important part of the marketing plan
Identify a brand in cabinet or pantry : Identify a brand in your cabinet or pantry. Do you believe this brand will have a finite lifespan or one that lasts forever? Support your reasoning.
What are some of the challenges associated with disney : What are some of the challenges associated with Disney theme parks? Use examples.

Reviews

Write a Review

Microeconomics Questions & Answers

  Hormone free dairy milk has been found to be potentially

hormone free dairy milk has been found to be potentially more beneficial and healthy. consider the market for this

  How the total costs can be expressed as a function of q

Suppose that a firm's production function is given by the Cobb-Douglas function q= (K^a)(L^ß) and that the firm can purchase all the K and L it wants in competitive input markets at rental rates v and w, respectively.

  Name at least two legislations to prevent monopolization of

Name at least two legislations to prevent monopolization of businesses

  Compute the profit at the end of each year

Compute the profit at the end of each year if the hospital continues to use the traditional method for surgical operations and compute the profit at the end of each year if the hospital uses a Robotic Surgery Machine for surgical operations.

  How does the change affect the north

How does this change affect the North? In particular, compare northern economic performance before the southern innovation with northern economic performance.

  Describe historical event comparable to your articles issue

Describe an historical event comparable to your article's economic issue and how that incident impacted the daily life (work, home, and recreation) of the time.

  Explain the factors which are used in npv and fv formulas

you have been asked by a manager in your organization to put together a training program explaining net present value

  Cost function show economies or diseconomies of scale

The cost function for gumballs is given by TC = q(2v+w), where q is the output of gumballs (in thousands), v is the hourly rental rate for gumball presses, and w is the hourly wage.

  Fine equilibrium price and quantity

The total marginal cost functions of a competitive firm are tv+1800+2q^2 and mc=4q, where tv and mc are total cost respectively, and q is the firms total output. There are currently 100 identical firms. The demand function is p=180-.02q. P is price, ..

  Calculate income elasticity of demand for the product

When income goes up from $20,000 to $30,000, demand for product A is going up from 300 to 400.  The price of the product A is $200.  However demand for product B is going down from 100 to 50.  The price of the of the product B is $10.  Is the Product..

  Why the interest-earning checkable deposits included in m1

what determines whether a financial asset is included in the m1 money supply? why are interest-earning checkable

  How can two countries both better off as result of trade

how can two countries both be better off as a result of trade? how can tariffs protect u.s. jobs? do tariffs lead to a

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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