Discussion on Economic Status and Social Change
Prices are the driving force behind every buying and selling decision in a market economy. Prices are determined by the supply and demand equilibrium and are influenced by the price elasticity of demand and supply of goods and services.
Eric and Ginny are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of barley and alfalfa each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of the land… Continue reading Comparative and absolute advantage
Suppose Japan produces only tablets and smartphones. The resources that are used in the production of these two goods are not specialized. The same set of resources is equally useful in producing both smartphones and tablets.
Felix and Janet are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre.
Suppose that France and Austria both produce fish and olives. France’s opportunity cost of producing a crate of olives is 4 pounds of fish while Austria’s opportunity cost of producing a crate of olives is 10 pounds of fish. By comparing the opportunity cost of producing olives in the two countries, you can tell that… Continue reading Suppose that France and Austria consider trading olives and fish with each other
In your responses, comment on the posts of at least two peers whose simulations had different outcomes than your own. Research and provide examples of companies in the news that are relevant to your peers’ comments on the value of comparative advantage for making their business decisions.
Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works,… Continue reading Complete the following table by computing the opportunity cost of Juanita’s time and the total cost of shopping at each location.
You work as an assistant coach on the university swim team and earn $13 per hour.