Answer Happy

Use the graph to answer questions 1-3. (15 %) Bread 20 16 12 m 8 4 0 B 1 C 1 2 1) What is the opportunity cost of increasing production of tractors from 2 to 3? 2) Identify one combination of production that is on the production possibilities curve. 3) List any combination of production that is not currently possible based on the production possibilities curve. 4) You have an opportunity to work three hours of overtime and earn an extra $99 gross income. However, a total of $32 will be taken out federal, state, and local taxes. You park in the parking garage and will have to pay $6.50 total to park for the additional hours. You also didn't pack an extra meal, which you already have in the refrigerator at home; so you will have to spend $12 for food. You will also have to pay $55 for additional daycare for your children. According to the marginal principle and everything else equal (ceteris paribus); will you work the overtime? Why or why not? (Show your work) (10 %) # of Workers 3 D Use the following table to answer question 5 4 2 3 4 Tractors E Total # of Pizzas (Output) 15 33 55 66 Marginal Product 15 18 22 11 5) Identify when diminishing returns take place based on marginal product. Identify the number of workers when that takes place. 6) What is an economic system? Compare/contrast three main differences between the two main categories of economic systems. (10 %) 7) List each of the three main categories of forms of business ownership. Then include the number of owners, how they are taxed, and explain the liability for each of the three categories of business ownership. (15 %)