Use the following production possibilities frontier for a country to answer the questions.

Which point or points are inefficient? Briefly explain why.

Suppose you are building an economic model to forecast the number of people employed in U.S. manufacturing in 2024. Should your model take into account possible changes in economic policy enacted by the president and Congress? Briefly explain.

Use the following production possibilities frontier for a country to answer the questions.

Which point or points are efficient? Briefly explain why.

Explain how production of urine with an osmotic U/P ratio of 0.3 helps raise the osmotic pressure of the blood plasma.

The following information was drawn from the records of Toner Sales Company:

$$\begin{array}{lrrrrr} && \textbf{2016} & \textbf{2017}\\ \\ \text{Net sales} && \$200,000 & \$200,000\\ \text{Cost of goods sold} && \text{(90,000)} & \text{(80,000)}\\ \text{Operating expenses} && \text{(60,000)} & \text{(50,000)}\\ \text{Loss on the sale of land} && \text{0} & \text{(24,000)}\\ \end{array}$$

Required

Prepare a multistep income statement for each year.

If Nicaragua can produce with the same amount of resources twice as much coffee as Colombia, explain how Colombia could have a comparative advantage in producing coffee.

[Related to the Apply the Concept on page 57] In a famous essay on the market system, the economist Leonard Read discussed how a pencil sold by the U.S. firm Eberhard Faber Pencil Company (now owned by Paper Mate) was made. He noted that logging companies in California and Oregon grew the cedar wood used in the pencil. The wood was milled into pencil-width slats at a factory in San Leandro, California. The graphite for the pencil was mined in Sri Lanka and mixed with clay purchased from a firm in Mississippi and wax from a firm in Mexico. The rubber was purchased from a firm in Indonesia. Was it necessary for the managers of all these firms to know how the components they produced were assembled into a pencil? Was it necessary for the chief executive officer of the Eberhard Faber Company to know this information? Briefly explain.

Suppose we can divide all the goods produced by an economy into two types: consumption goods and capital goods. Capital goods, such as machinery, equipment, and computers, are goods used to produce other goods.

Suppose that Lichtenstein and Luxembourg currently have identical production possibilities frontiers but that Lichtenstein devotes only 5 percent of its resources to producing capital goods over each of the next 10 years, while Luxembourg devotes 30 percent. Which country is likely to experience more rapid economic growth in the future? Illustrate using a production possibilities frontier graph. Your graph should include production possibilities frontiers for Lichtenstein and Luxembourg today and in 10 years.

Suppose we can divide all the goods produced by an economy into two types: consumption goods and capital goods. Capital goods, such as machinery, equipment, and computers, are goods used to produce other goods.

Suppose a technological change occurs and has a favorable effect on the production of capital goods but not consumption goods. Show the effect on the production possibilities frontier.

Suppose we can divide all the goods produced by an economy into two types: consumption goods and capital goods. Capital goods, such as machinery, equipment, and computers, are goods used to produce other goods.

Use a production possibilities frontier graph to illustrate the trade-off to an economy between producing consumption goods and producing capital goods. Is it likely that the production possibilities frontier in this situation will be a straight line (as in Figure 2.1 on page 43) or bowed out (as in Figure 2.2 on page 46)? Briefly explain.

[Related to the Apply the Concept on page 57] The late Nobel Prize–winning economist Kenneth Arrow of Stanford University once wrote that the argument that the outcomes in a market system “may be very different from, and even opposed to, intentions is surely the most important intellectual contribution that economic thought has made.” Briefly explain how it is possible for the outcomes in a market system to be different from what firms and consumers intended them to be. Why is this idea such an important intellectual contribution?

Can an individual or a country produce beyond its production possibilities frontier? Can an individual or a country consume beyond its production possibilities frontier? Briefly explain.

Identify whether each of the following transactions will take place in the factor market or in the product market and whether households or firms are supplying the good or service or demanding the good or service.

Tariq sells the land he owns to McDonald’s so that it can build a new restaurant.

Why do Belgium, Turkey, and Australia have higher voter turnout rates than the United States?

a. compulsory voting laws

b. more elections

c. fewer registration laws

d. more polling locations