Problem 1 Draw a production possibilities curve for time. On one axis put sleep time and on the other put awake time. You have 24 hours available in a given day. Indicate the combination that describes your allocation today. Also indicate a combination that is unavailable for anyone.

Problem 1

Draw a production possibilities curve for time. On one axis put sleep time and on the other put awake time. You have 24 hours available in a given day. Indicate the combination that describes your allocation today. Also indicate a combination that is unavailable for anyone.

 

Problem 2

According to Figure 1.1 in the textbook Essentials of Economics 10th edition), what is the opportunity cost of increasing consumer output from OF to OD?

 

Problem 3

There are three answers, which must be addressed by any economy. These are outlined in the instructor’s comments. For each of the questions, I would like a criticism of how each is answered in the U.S.

 

Problem 4

If automobile emissions controls were not mandated by law, would people willingly buy and install them? Explain your response.

 

Problem 5

According to the text (page 29), GDP per capita in the U.S. was $49,000 dollars in 2012. Given the following three assumptions with zero population growth, what will it be in 2022 if GDP per capita grows each year by:

0 percent growth rate in GDP

2 percent growth rate in GDP

4 percent growth rate in GDP

 

Internet Questions

Question 1

Visit: Labor Force Statistics from the Current Population Survey

Log into this website and find the data for the Civilian Labor Force. What has happened to the size of the labor force over the last several years? What implications does this have for the nation’s production possibilities curve?

 

Question 2

Visit: U.S. National Debt Clock

An interesting site. What is the current level of the U.S. public debt? Who is the Concord Coalition? How do you think this debt affects economic growth?

 

Question 3

Visit: U.S. Census Bureau > Income > Households

Go to the above website, scroll down to Table H2 and select “All Races.” Calculate the percentage change in the Shares of Household Income of Quintiles between 1968 and 2013. Notice the dates are in reverse chronological order. Why do you think it has changed in the manner it has? Feel free to visit the main Census page at https://www.census.gov/ and click on Income under People for other interesting facts.