1.Suppose Bob and Sara are producing food and are thinking of trading. They produce ice cream and salad. Bob can produce 10 units of ice cream or 6 units of salad; Sara can produce 6 units of ice cream or 4 units of salad. Remember to take what each person gives up (opportunity cost) and then divide by what they get. Check all that apply:Bob’s opportunity cost of ice cream 3/5 of a salad, and his opportunity cost of a salad is 5/3 ice cream.Sara’s opportunity cost of ice cream is 2/3 of a salad and her opportunity cost of a salad is 3/2 of an ice cream.Bob should specialize in ice cream, while Sara should specialize in salad.Bob should specialize in salad, while Sara should specialize in ice cream.2/ _________ economics discusses how the economy should work, __________ economics deals with how it works in fact.Positive, normativeNormative, positive3/ According to your reading (article #2.1), why do we see giant jumps in price (and industry profitability) in markets like gasoline, when the supply and demand model suggests prices should correspond to costs?Because corporations are gouging the public illegallyBecause of market manipulation by OPECBecause short-run behavior is inflexible, spiking prices until behavior is forced to change4/ Exchanging goods and services directly for other goods and services isBarterLocal marketsCo-opsFactor markets5/ The intersection of the supply and demand curves is called the ____________ price, and is special because at that price __________.Producer, the market clearsEquilbirum, all consumer incomes are equalProducer, returns to factors are identicalEquilibrium, market supply exactly equals demand
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How it Works
- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.