By Craig Depken
There’s no more straightforward, quicker, or more effective solution to study the quite tricky subjects
Microeconomics Demystified contains a transparent and easy-to-understand presentation of the techniques and ideas of microeconomics, with beneficiant purposes and examples. This self-teaching consultant comes whole with key issues, historical past info, quizzes on the finish of every bankruptcy, or even a last examination. basic adequate for newcomers yet hard sufficient for complex scholars, it is a full of life and unique brush-up, introductory textual content, or school room supplement.
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Extra resources for Microeconomics Demystified: A Self-Teaching Guide
Outside its PPF. c. inside its PPF. d. without a PPF. 3. Trade, coupled with comparative advantage, allows you to a. produce outside your production possibilities frontier (PPF). b. produce within your PPF. c. not worry about your PPF. d. consume outside your PPF. Microeconomics Demystified 34 4. Assume Country A can produce 10 million bushels of corn or 10 million automobiles and Country B can produce 20 million bushels of corn or 1 million automobiles. Which country has a comparative advantage in corn?
An inverse relationship between X and Y. b. a positive relationship between X and Y. c. a nonlinear relationship between X and Y. d. an indeterminate relationship between X and Y. CHAPTER 2 Math Review 17 4. The equation 50 = 5X + 10Y is equivalent to a. Y = 500 – 50X b. Y = 500 + 50X c. 5X d. 5X 5. The difference between a linear and a nonlinear relationship is a. a linear relationship has a changing slope. b. a nonlinear relationship has a constant slope. c. a linear relationship has no vertical intercept.
On the other hand, Sandy’s opportunity Microeconomics Demystified 26 Total Number of Pizzas Total Number of Sodas 50 0 40 3 30 6 20 9 10 12 0 15 Table 3-3 Sandy’s Production Possibilities Schedule for Soda and Pizzas cost for soda is 10/3 of a pizza for each soda. In the case of soda, Robinson has the comparative advantage. This is a general result: No individual or country has a comparative advantage in all goods. Comparative advantage is an important and powerful concept in economics, but is one of the least understood outside of the field of economics.