Answer Happy

Problems: Chapter 2 1. Suppose either computers or televisions can be assembled with the following labor inputs: Units produced 1 Total labor used 3 5 10 7 12 33 42 54 70 90 (a) Draw the production possibilities curve for an economy with 54 units of labor. Label it PS4. (b) What is the opportunity cost of the eighth computer? (c) Suppose immigration brings in 36 more workers. Redraw the production possibilities curve to reflect this added labor. Label the new curve P90, Chapter 3 1. Given the following data, identify the amount of shortage or surplus that would exist at a price of (0) $5.00 (b) $3.00 (c) $1.00 What is the equilibrium price? How would the equilibrium price and quantity change if Alice left the market? $5.00 54.00 $3.00 $2.00 $1.00 Price Quantity demanded Al 1 Betsy 0 Casey 2 2 3 Daisy 1 3 4 4 Eddie 1 2 2 3 S Market Total Price $5.00 $4.00 $3.00 $2.00 $1.00 Quantity supplied Alice Butch 5 4 4 Connie 6 4 3 Dutch 6 5 4 3 0 Ellen 4 2 2 2 Market Total Role of Government 4 Assuming a 5 percent sales tax is levied on all consumption, complete the following table Income Consumption Sales Tax Percent of Income Paid in Taxes $20,000 10,000 30,000 18,000 50,000 35,000 100,000 80,000 Is this tax progressive, regressive or proportional?