G ng.cengage.com Dade College Blackboard | Miami Dade College Access Module 3 Training (graded) C MindTap - Cengage Learning CENGAGE | MINDTAP Numbers and Graphs: What Economics is About (Ch 01) 30 Marginal-Cost Curve O- Marginal-Benefit Curve MARGINAL COST, MARGINAL BENEFIT ($ per hour of reading per week) N G Efficient Point 5 10 15 20 25 30 35 40 45 50 READING (Hours per week) Above/below At any level of reading below the efficient level, the marginal-benefit curve is_ the marginal-cost curve. This means the marginal benefits of Less/greater than the marginal costs of reading, and therefore, you can increase net benefits by reading for `hours. On the reading are other hand, at any level of reading greater than the efficient amount, the marginal-benefit curve is re Above/belothe margin curve. This means more that the marginal benefits of reading dress/ greaterthan the marginal costs of reading, and therefore, you can increas nefits by reading Fewer/more hours. Only at the efficient point, where marginal benefits argreater than/ less the marginal costs of re fewer e net benefits than/ equal to maximized. Grade It Now Save & Continue Continue without saving Dil DD F10 F3 F6 % 8 9ers and Graphs: What Economics is About (Ch 01) 27 24 MC 21 + 18 Initial Efficient Point MC 15 12 New Efficient Point MARGINAL COST, MARGINAL MB 12 15 18 21 24 2 30 READING (Hours per week) Now assume that the marginal costs of reading have increased. On the graph, shift the marginal-cost curve (an orange line) to reflect the change in the marginal costs of reading. Then use the gray point (a star symbol) to plot the new efficient point after the shift in the marginal-cost curve. Finally, use the tan area (rectangle symbols) to shade the area representing the change in net benefits associated with this increase in the marginal cost of reading. Greater/less After the increase in the marginal cost of reading, the new efficient level of reading is than it was previously. Furthermore, the net benefits associated with the efficient level of reading haveDecreased/ increased Grade It Now Save & Continue Continue without saving MacBook Air 44 Dil DD 20 586 F3 FS F7 FB F9 F10 F4 F6 % & 8 9 O P m R Y U OA ng.cengage.com X de College Blackboard | Miami Dade College Access Module 3 Training (graded) C Mind Tap - CENGAGE | MINDTAP Homework: What Economics is About (Ch 01) 20 30 40 50 60 70 80 QUANTITY (Millions of kegs) If 60 million kegs of beer are sold, , which means that: It would be fairer for soci MB exceeds MC er resources to the production of beer. It would be more efficient MC exceeds MB cote fewer resources to the production of beer. It would be more efficient MB equals MC rote more resources to the production of beer. It would be fairer for society to devote more resources to the production of beer. If 20 million kegs of beer are sold, , which means that: It would be more efficient for society to devote more resources to the production of beer. It would be fairer for society to devote fewer resources to the production of beer. It would be fairer for society to devote more resources to the production of beer. It would be more efficient for society to devote fewer resources to the production of beer. The efficient allocation of resources would result in the production of 30 million kegs of beer. Grade It Now Sav Contin DDng.cengage.com X College Blackboard | Miami Dade College Access Module 3 Training (graded) C Mind Tap - Cengage Learning CENGAGE | MINDTAP umbers and Graphs: Production Possibilities Frontier Framework (Ch 02) 4. Working with Numbers and Graphs Q4 Consider an economy that produces two goods: X and Y. The following two graphs (A and B) each depict a scenario where the economy starts on the green production possibilities frontier (PPF1). Each scenario depicts a shift from the first PPF to the second PPF in blue (PPF2). Use the graphs to answer the question that follows. Graph A Graph B PPF PPF PPF , PPF 1 X Xng.cengage.com X College Blackboard | Miami Dade College Access Module 3 Training (graded) C MindTap - Cengag CENGAGE | MINDTAP umbers and Graphs: What Economics is About (Ch 01) Graph A Graph B MC MC MARGINAL BENEFIT, MARGINAL COST ($ per hour of Activity X) MARGINAL BENEFIT, MARGINAL COST ($ per hour of Activity X) MB MB ACTIVITY X (Hours) ACTIVITY X (Hours) Which of the graphs best represents Jim's marginal-benefit and marginal-cost curves? Graph A Graph B Grade It Now Save & Co Continue with DD 00 2ng.cengage.com board | Miami Dade College Blackboard | Miami Dade College Access Module 3 Training (gr V CENGAGE | MINDTAP Numbers and Graphs: Supply and Demand: Theory (Ch 03) 6. Working with Numbers and Graphs Q6 The following graph shows a market demand curve (in blue) and a market supply curve (in orange) Is Use the black point (plus symbol) to plot the point representing the equilibrium price and quantity. 20 Demand Equilibrium N PRICE Supply O O 8 16 24 32 40 48 56 64 72 80 QUANTITY At which of the following quantities is the maximum buying price equal to the minimum selling price? 52ng.cengage.com X College Blackboard | Miami Dade College Access Module 3 Training (graded) C Mind Tap - Cengage Learning CENGAGE |MINDTAP lumbers and Graphs: Production Possibilities Frontier Framework (Ch 02) 7. Working with Numbers and Graphs Q7 Suppose Bulgaria produces only two goods: wheat and computers. The following graph shows Bulgaria's current production possibilities frontier (PPF), along with nine output combinations represented by black points (cross symbol) labeled A to I. 100 PPF COMPUTERS (Millions m 40 80 100 60 20 WHEAT (Millions of bushels) 4 2ng.cengage.com College Blackboard | Miami Dade College Access Module 3 Training (graded) C MindTap - Cengage Lea CENGAGE |MINDTAP Numbers and Graphs: What Economics is About (Ch 01) Jim has the opportunity to undertake activity X and chooses to undertake some level of the activity. Consider the following graphs, each of which depicts a marginal-cost curve (MC) in orange and a marginal-benefit curve (MB) in blue. Graph A Graph B MC MC MARGINAL BENEFIT, MARGINAL COST ($ per hour of Activity X) MARGINAL BENEFIT, MARGINAL COST ($ per hour of Activity X) MB MB ACTIVITY X (Hours) ACTIVITY X (Hours) Which of the graphs best represents Jim's marginal-benefit and marginal-cost curves? Graph A O LOng.cengage.com X ni Dade College Blackboard | Miami Dade College Access Module 3 Training (graded) C Mind Tap - Cengage Learning CENGAGE MINDTAP Numbers and Graphs: Production Possibilities Frontier Framework (Ch 02) Suppose that Kamal and Nicki each specializes in the production of the good in which each has a comparative advantage. Fill in the top row of the following table to indicate Kamal's and Nicki's output of each good. Nicki Kamal X X Before Trade, with Specialization After Trade After specialization, suppose the two agree on a price of 3 units of good X for each unit of good Y. When the two individuals make the trade, they exchange 30 units of good X for 10 units of good Y. Recall that the individual who has specialized in the production of X would trade 30 units of good X and receive 10 units of good Y, while the individual who specialized in the production of good Y would trade 10 units of good Y and receive 30 units of good X. In the previous table, fill in the second row to indicate the amounts of good X and good Y each individual has after the trade. The following graphs plot Nicki's production possibilities frontier (PPF) in purple and Kamal's PPF in blue, respectively. Using the second row of the previous table, plot Nicki's new combination of X and Y with the grey point (star symbol) Nicki 180 162 Nicki after Trade 144ng.cengage.com Dade College Blackboard | Miami Dade College Access Module 3 Training (graded) C MindTap - Cengage Learning CENGAGE | MINDTAP Numbers and Graphs: Production Possibilities Frontier Framework (Ch 02) 1. Working with Numbers and Graphs Q1 Suppose a small economy produces only two goods: books and shirts. The opportunity cost of 1 book is constant at 2 shirts. For example, in order for this economy to produce 1 more book, 2 fewer shirts must be produced. In the following table, fill in the number of shirts in each combination (given the number of books being produced). Combination Books Shirts + m N Using the data from the table in previous question, plot the production possibilities frontier (PPF) on the following graph with the purple points (diamond symbol). Plot the points from left to right, in the order in which you would like them to appear. Line segments will connect automatically. PPF ' BOOKS O CO CO LO COG ng.cengage.com d | Miami Dade College Blackboard | Miami Dade College Access Module 3 Training (graded) CENGAGE MINDTAP Numbers and Graphs: Supply and Demand: Theory (Ch 03) 5. Working with Numbers and Graphs Q5 The following graph shows a demand curve (in blue), a supply curve (in orange), and the point (black plus) representing equilibrium. Use the green points (triangle symbols) to shade the area representing consumers' surplus at equilibrium. Use the purple points (diamond symbols) to shade the area corresponding to producers' surplus at equilibrium. Demand Consumers' Surplus Producers' Surplus N PRICE (Dollars per unit) Supply O 2 3 5 6 8 9 10 QUANTITY (Units) Grade It Now Save & ContinueA ng.cengage.com Miami Dade College Blackboard | Miami Dade College Access Module 3 Training (graded) CENGAGE MINDTAP Numbers and Graphs: Supply and Demand: Theory (Ch 03) Supply Co Demand Supply LO PRICE Demand 1 2 3 4 5 6 7 8 9 10 QUANTITY As you can see by the changes on the graph in this case, the magnitude of the shift in the supply curve is the magnitude of the shift in the demand curve. less than Use the following table to indicate the changes in equilibrium price and quantity that result from the shifts equal to demand on the previous graph more than Increase Decrease No Change Equilibrium price O O O Equilibrium quantity O O Grade It Now Save & Continue Continue without saving O LOng.cengage.com X College Blackboard | Miami Dade College Access Module 3 Training (graded) C Mind Tap - Cengage Learning CENGAGE |MINDTAP lumbers and Graphs: Production Possibilities Frontier Framework (Ch 02) Given the number of coffee makers produced, fill in the maximum number of cell phones that can be produced for each of the combinations in the following table. Combination Cell Phones Coffee Makers