Question

4. The global cconomy has three cell phone users for every fixed line user. Two in e cell phone users lives in a developing nation and the growth rate is fastest in Africa In 2000, 1 African in 50 had a cell phone; in 2009, it was 14 in 50. Describe the changes in what, how, and for whom t n services the global economy produces. 5. Which of the entries in the list below are consumption goods and services and which are government goods? Explain your choice. 6. Which of the entries in the list below are capital goods? Explain your choice. List for Questions 5 and 6: An interstate highway An airplane A school teacher A stealth bombe A garbage A pack of bubble gum President of the United StatesI A strawberry ficld A movie, An ATM 7. The pcople of Foodland have 40 hours of labor a day to bake pizza and bread. The table shows the maximum quantity of cither pizza or bread that Foodland can bake with different quantities of labor. Pizzas Can Foodland produce 30 pizzas and 30 loaves of bread a day? If it can, is this output efficient, do the pcople of Foodland face a tradcoff, and what is the opportunity cost of producing an additional pizza? Use the following table, which shows a farm's production possibilities, for Problems 8 and 9. oybean (bushels hicken (pounds 00 and 200 nd and 300 and 550 8. If the farm uses its resources efficiently, what is the opportunity cost of an increase in chicken production from 300 pounds to 500 pounds a year? Explan your answer. 9. If the farm adopted a new technology, which allows it to use fewer resources to fatten chickens, explain how the farm's production possibilities will change. Explain how the opportunity cost of producing a bushel of soybean will be affected. 10. The table shows the demand and supply schedules for running shoes. What is the market equilibrium? If the price is $70 a pair, describe the situation in the market. Explain how market equilibrium is restored. If a rise in income increases the demand for running shoes by 100 pairs a day at each price, explain how the market adjusts to its new oquilibrium. Quantity Quantity (dollars per pair) demanded supplied (pairs per day) 500 600 90 100 700 800 900 500

Answer 1