We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Macro 3.4 - Essay Example

Comments (0) Cite this document
Summary
Micro and Macro-economics Name: Institution: Course: Tutor: Date: Micro and Macro-economics questions and answers Lesson 1: Foundations of economic thinking 1. A small county produces two goods: automobiles (consumer goods) and forklifts (capital goods). Points on a production possibilities curve can be shown in a table: A B C D E Automobiles 0 10 20 30 40 Forklifts 70 60 45 25 0 a).Show these data graphically…
Download full paper
GRAB THE BEST PAPER
Macro 3.4
Read TextPreview

Extract of sample
Macro 3.4

Download file to see previous pages... The horizontal movement represents all the resources that were used to come up with automobile while vertical movement represent all resources that were used to come with the forklifts. Additionally, the graph represents a trade off that may exist when resources are shifted to either automobile or fork lifts. This is usually done when resources are fully employed given the fact that technology and institutions remain constant (Tucker, 2011). Given all the above conditions, out potential for the two products may be able to be achieved at any point on the curve (Tucker, 2011). The law of increasing opportunity coast states that, when technology and resources are held constant, opportunity cost increases as the production of one out increases (Tucker, 2011). In this case, the production possibility curve above exhibit the law of increasing opportunity cost because production possibility curve above displays a convex shape (Tucker, 2011). ...
Therefore, based on the above assessment it can be scrutinized that the production possibility curve above exhibit the law of increasing opportunity cost (Tucker, 2011). b) If the economy is at point C, what is the opportunity cost of 10 more automobiles? (5 points) If the hypothetical economy is at point C, the economy must sacrifice 20 units of automobile in order to produce 45 additional units of forklifts this is because movement along the vertical axis led to an increase in number of automobile units being sacrificed in order to produce additional units of fork lifts. On the other hand, a downward movement below point C along the vertical axis leads to an increase in number of additional units of automobile being produced as more and more units of forklifts are being sacrificed(Tucker, 2011). C) If the economy is characterized by this production possibilities curve and is producing 10 automobiles and 40 forklifts, what can you conclude about its use of its available resources? (5 points) When this economy produces 10 automobiles and 40 forklifts, it is an indication that, the hypothetical economy must sacrifice 10 units of automobile in order to produce 10 units of folk lifts. On the other hand, the economy must sacrifice 40 units of forklifts to produce 10 units of automobile. At this point of production we can say that economy is it’s attainable and efficient because the resources are fully employed while technology is held constant (Tucker, 2011). d) Is production at a point outside of the production possibilities curve currently possible? Could a future advance in technology allow production beyond the current production possibilities curve? Could international trade allow a country to consume beyond its current production possibilities ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Macro 3.4 Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1462360-macro
(Macro 3.4 Essay Example | Topics and Well Written Essays - 1250 Words)
https://studentshare.org/macro-microeconomics/1462360-macro.
“Macro 3.4 Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/macro-microeconomics/1462360-macro.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Macro--economic
Some economists are even anxious that the US's may have lessened their love of property ownership. It looks that boom years had never occurred. Paul Dales, US economist at Capital Economics says that "You would have to go back to the Great Depression to find anything similar.
6 Pages(1500 words)Essay
Macro Economics
Running Head: Macro Economics Macro Economics Writer’s Name Macro Economics Question 1 The determination of the level of GDP (Gross Domestic Product) in the short run is determined by the model developed by John Maynard Keynes. This model works on the basic premise that the level of production in the economy depends upon the level of aggregate demand.
4 Pages(1000 words)Essay
Assignment: Macroeconomics Questions
This means that the total demand and supply for labor is at equilibrium. In the labor market workers will always flow in and out in search of better jobs. In the process, of finding such jobs those involved will become employed. Indeed, an economy will most likely be unable to escape the impacts of natural rate of unemployment because labor prices rise earlier before the economy achieve zero rate of unemployment.
5 Pages(1250 words)Essay
Macro
The businessmen are hesitant to hire and invest whereas the consumers are hesitant to spend because of uncertainty about their prospects. When an investor has to decide whether to invest in a new product or other facility, with the success of his decision dependent on future revenues and costs, there is bound to be an irreducible element.
3 Pages(750 words)Essay
Macro Economic Policy in Australia
This subject gives necessary information about the concept of unemployment, level of income, trade and investment. Present macro economic policies in Australia are Fiscal and Monetary policies. Due to the implementation of this policy, the country has experienced consistent economic growth for over a decade.
7 Pages(1750 words)Essay
Macro economic
flation rate constantly within a narrow band will involve quite a bit of short-term variation of the interest rate lever (and, consequentially, the exchange rate), and policy will be jerking output around Central banks may regard their sole objective as inflation, but it seems
6 Pages(1500 words)Essay
3.4
argets and hence it cannot afford to incur losses in bad debts or lose clients – the division tries all its level best not to expose the company to unreasonable levels of risk, especially by exercising strict minimum requirements for loan approval. Commercial Equipment
6 Pages(1500 words)Case Study
Macro
The article documents the past focus of the federal government on inflation as the sole and greatest cause of macroeconomic problems. In recent times however it has become apparent that the problem is no longer inflations but more to
1 Pages(250 words)Essay
MACRO
The UK economy is seen to be gradually emerging from the situation of economic turmoil. The attention of the government is now shifting to make it more sustainable, resilient and stable economy (Crown, 2014; OECD, 2013). In
5 Pages(1250 words)Essay
Macro Economics
In the long-run a decrease in technology will experience the opposite of what happens in the short run. In the United States of America, the economic condition is extremely favorable.
4 Pages(1000 words)Essay
Let us find you another Essay on topic Macro 3.4 for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us