Solution Manual Foundations of Business 7th Edition by Pride, All chapter 1- 47 fully covered ISBN: 9780357717943
Solution Manual Foundations of Business 7th Edition by Pride, All chapter 1- 47 fully covered ISBN: 9780357717943
Solution Manual Foundations of Business 7th Edition by Pride, All ...
Solution Manual
Foundations of Business
7th Edition by Pride, All chapter 1- 47
,Chapter 1 e
End of Chapter Questions
e e e
QuizeYourself
1. Scarcityeimpliesethatetheeallocationedecisionechosenebyesocietyecan
a) notemakeemoreeofeanyeoneegood.
b) alwaysemakeemoreeofeanyegood.
c) typicallyemakeemoreeofeoneegoodebuteatetheeexpenseeofemakingelesseofea
nother.
d) alwaysemakeemoreeofeallegoodsesimultaneously.eExpla
nation:eScarcityeimpliesethatechoiceseinvolveetrade-offs.
2. Aeproductionepossibilitiesefrontiereiseaesimpleemodeleof
a) allocatingescarceeinputsetoetheeproductioneofealternativeeoutputs.
a) priceeandeproduction/consumptioneineaemarket.
b) theecosteofeproducingegoods.
c) theenumbereofeinputserequiredetoeproduceevaryingelevelseofeoutput.e Explanation:e
Theeproductionepossibilitiesefrontiereshowsetheequantityeofetwoegoodsethatecanebeeproduce
d.eIteimpliesethatescarcityerequiresethatechoicesebeemadeeasetoehowetoeuseeresources.
,3. Theeunderlyingereasonethatethereeareeunattainableepointseoneaeproductionepossibilitiesefr
ontiereisethatethere
a. isegovernment.
b. areealwaysechoicesethatemustebeemade.
c. areescarceeresourcesewithineaefixedeleveleofetechnology.
d. iseunemploymenteoferesources.
Explanation:eTheepointseoutsideetheeproductionepossibilitiesefrontiereareeunattainable.eThise
meansethatecurrentlyeavailableeresourceseandetechnologyeareeinsufficientetoeproduceeamount
segreaterethanethoseeillustratedeonetheefrontier.eOneaegraph,eeverythingebeyondetheefrontiereise
unattainable.
AACSB:eReflectiveeThinkingeAccessib
ility:eKeyboardeNavigationeBlooms:eRe
member
Difficulty:e01eEasyeGradeable
:eautomaticeLearningeObjectiv
e:e01-01
Topic:eModelingeOpportunityeCosteUsingetheeProductionePossibilitieseFrontier
4. Theeunderlyingereasoneproductionepossibilitiesefrontierseareelikelyetoebeebowedeoute(r
atherethanelinear)eisebecause
a. choicesehaveeconsequences.
b. thereeareealwayseopportunityecosts.
c. someeresourceseandepeopleecanebeebettereusedeproducingeoneegooderatheret
haneanother.
d. thereeisealwaysesomeeleveleofeunemployment.
Explanation:eIfetheeproductionepossibilitiesefrontiereisenoteaelineebuteisebowedeouteawayefrome
theeorigin,etheneopportunityecosteiseincreasing.eTheereasoneforethiseisethateaseweeaddemoreeres
ourcesetoetheeproductioneof,eforeexample,epizza,eweeareeusingefewereresourcesetoeproduceeso
da.eCompoundingethateproblem,eateeachestageeaseweetakeetheeresourceseawayefromesodaeande
putethemeintoepizza,eweeareemovingeworkersewhoeareeworseeatepizzaeproductioneandebettereate
sodaeproductionethanethoseemovedeinetheepreviousestage.eThisemeansethatetheeincreaseeinepizz
aeproductioneisediminishingeandetheelosseinesodaeproductioneiseincreasing.eAneeconomistewou
ldecallethiseaneexampleeofeincreasingeopportunityecost.eIfetheeproductionepossibilitiesefrontier
eiseae straightelineethateisenot ebowedeouteawayefrometheeorigin, etheneopportunityecosteiseconsta
6. Theeoptimizationeassumptionesuggestsethatepeopleemake
a. irrationaledecisions.
b. unpredictableedecisions.
c. decisionsetoemakeethemselveseasewelleoffeasepossible.
d. decisionsewithoutethinkingeveryehard.
Explanation:eTheeoptimizationeassumptionesuggestsethatetheepersoneinequestioneisetryingetoe
maximizeesomeeobjective.eConsumerseareeassumedetoebeemakingedecisionsethatemaximizee
theirehappinessesubjectetoeaescarceeamounteofemoney.
AACSB:eReflectiveeThinkingeAccessib
ility:eKeyboardeNavigationeBlooms:eRe
member
Difficulty:e01eEasyeGradeable
:eautomaticeLearningeObjectiv
e:e01-01
Topic:eThinkingeEconomically
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