Questions from Macroeconomics

Q: Imagine a society that produces military goods and consumer goods, which

Imagine a society that produces military goods and consumer goods, which we’ll call “guns” and “butter.” a. Draw a production possibilities frontier for guns and butter. Using the concept of opportuni...

Q: Why do economists make assumptions?

Why do economists make assumptions?

Q: Give an example of a positive statement and an example of a

Give an example of a positive statement and an example of a normative statement that somehow relates to your daily life. Name three parts of government that regularly rely on advice from economists.

Q: Once again, in an hour, Mateo can wash 2 cars

Once again, in an hour, Mateo can wash 2 cars or mow 1 lawn, and Tyler can wash 3 cars or mow 1 lawn. Who has the comparative advantage in car washing, and who has the comparative advantage in lawn mo...

Q: American and Japanese workers can each produce 4 cars a year.

American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simpl...

Q: Explain how absolute advantage and comparative advantage differ.

Explain how absolute advantage and comparative advantage differ.

Q: Robinson Crusoe can gather 10 coconuts or catch 1 fish per hour

Robinson Crusoe can gather 10 coconuts or catch 1 fish per hour. His friend Friday can gather 30 coconuts or catch 2 fish per hour. What is Crusoe’s opportunity cost of catching 1 fish? What is Friday...

Q: An increase in ________ will cause a movement along a given demand

An increase in ________ will cause a movement along a given demand curve, which is called a change in ________. a. supply, demand b. supply, quantity demanded c. demand, supply d. demand, quantity sup...

Q: In what sense is economics like a science? Draw a production

In what sense is economics like a science? Draw a production possibilities frontier for a society that produces food and clothing. Show an efficient point, an inefficient point, and an infeasible poin...

Q: “An increase in the demand for notebooks raises the quantity of

“An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied.” Is this statement true or false? Explain.