so on to the countries that have suffered a disaster like famine or earthquake. From the point of view of the donating country answer the following question. a. Does such donations are free in the economic sense? b. If not, what is the economic cost of such donations? c. Why do countries give aid? Construct an example to answer this question. 2. Suppose a hypothetical country Zion produces only wheat and clothing given the scarce resource that is land and labor. The production possibility
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Macroeconomics Scarcity and Opportunity Cost Assessment 1. For each of the following, describe the opportunity cost when you decide to do each activity. a. Go to the beach or study for an exam: If I decided to go to the beach my opportunity cost would be my exam that I would most likely fail because of me choosing to get a tan at the beach instead of studying. Now If I chose to study for my exam instead of the beach I would pass my exam but my opportunity cost would be me getting
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transformation curve. 2. How is the shape of PPC? The production–possibility frontier can be constructed from the contract curve in an Edgeworth production box diagram of factor intensity. The example used above (which demonstrates increasing opportunity costs, with a curve concave from the origin) is the most common form of PPF. It represents a disparity in the factor intensities and technologies of the two production sectors. That is, as an economy specializes more
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Unit 2 Assignment Sonda Vaszlavik Kaplan University Online Prof. P. Tovbin August 12, 2013 Unit 2 Assignment Questions: 1. A representative of the American clothing industry recently made the following statement: “Workers in Asia often work in sweatshop conditions earning only pennies an hour. American workers are more productive and as a result earn higher wages. In order to preserve the dignity of the American workplace, the government should enact legislation banning imports
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accounting and economic profit is that accounting profit is based on verifiable historical data and does not take opportunity costs (time and capital) into account when determining the profit. For example, Kobe Bryant might consider leaving his basketball career to start a lawn mowing business. Is this a smart choice? In accounting profit calculation, which omits opportunity costs, the lawn mowing business would look lucrative if he’s making big profit. Perhaps people might pay $100 an hour
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(b). c. both Panel (a) and Panel (b). d. neither Panel (a) nor Panel (b). 4. The opportunity cost of an item is a. the number of hours that one must work in order to buy one unit of the item. b. what you give up to get that item. c. always less than the dollar value of the item. d. always greater than the cost of producing the item. 5. If Iowa’s opportunity cost of corn is lower than Oklahoma’s opportunity cost of corn, then a. Iowa has a comparative advantage in the production of corn. b. Iowa
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of while working or going to school is a complete opportunity cost. Or even that the way I purchased goods was complete and total economics. After basically discovering a whole new life, I came to a conclusion that without economics the life that we live would not be possible. Everyone, whether they’re as oblivious as I was or they are aware of it, "Like the potato, economics can be served in many ways,deal with piece ceilings, opportunity costs, taxes of course, goods and services etc. There’s
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operations, upgrade physical and financial resources and increase profitability in order to sustain consumer interest, confidence and loyalty? III. Areas of Consideration/Key Success Factors [in table form] Strengths Weaknesses Opportunities Threats Established customer base (S) Investments made in good condition machinery (S) Only 1 million pesos generated in company sales despite being in the business for 25 years (W) Expected boost in printing industry (O) International market
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sick leave law will not only help reduce the emergency room visits but also have other positive externalities. This is further explained as: 1) In Grossman’s model, health is a capital good. With the new law, a sick day will have a lower opportunity cost for the individual to seek immediate treatment (visit a doctor) or recuperate at home as there is no loss in earnings. Empirical evidence confirms this as 85% of individuals with paid sick leave visited the doctor compared to 72% of individuals
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Tucker: The Man and His Dream Introduction Tucker: The Man and His Dream is about a dynamic and enthusiast engineer and showman named Preston Tucker who has been interested in the production of cars since a young boy. Preston has made his stake by designing and building armored military vehicles during world war two. It is only after the war that he envisions the car of the future, the Tucker Torpedo. Building the Torpedo in 1948 with his brand new factory, Preston Tucker faced many overwhelming
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