Solution Manual For Microeconomics, 17th Canadian Edition,
By Christopher Ragan
Which of the following can best be characterized as a subject of microeconomics? -
ANSWER:an examination of consumer behavior
Which of the following can best be characterized as a subject of macroeconomics? -
ANSWER:an examination of inflation
_____________examines economies on a large scale, while ______________
examines economic activity on a relatively small scale. - ANSWER:macroeconomics;
microeconomics
Bob, the owner of a deli in his town, needs to purchase something that economists
would label as "capital" to help him produce sandwiches.
Which of the following is an example of capital?
A new idea that automates the making of sandwiches
Ham for the sandwiches
A meat slicer to cut ham for sandwiches
An additional worker - ANSWER:a meat slicer to cut ham sandwiches
Samantha needs to purchase something that economists would label as "labor" to
help her produce court documents for her law firm.
Which of the following is an example of labor?
The ability to see that organizing courtroom documents is an unfilled market need
A stenography machine to type courtroom proceedings
A stenographer who can type courtroom proceedings
Filing cabinets to store the typed courtroom documents - ANSWER:A stenographer
who can type courtroom proceedings
The ability to see a market need and to organize inputs to meet that need is what
type of market resource? - ANSWER:entrepreneurial ability
Which of the following scenarios most accurately reflects the concept of scarcity?
Brett is a farmer with an open field on which he can plant either soybeans or corn.
The steak Henry did not buy because he is a vegetarian.
Terry received a paycheck of $1,000 for helping build a house this week.
Johnny purchased a skinny vanilla latte from Starbucks. - ANSWER:Brett is a farmer
with an open field on which he can plant either soybeans or corn
,The opportunity cost of an action is always equal to:
the things you could have done instead of the action you chose to undertake.
the time you give up to undertake the action.
the money you give up to undertake the action.
the next-best alternative for the resources used to undertake the action. -
ANSWER:the next best alternative for the resources used to undertake
Which of the following best describes the opportunity cost of attending a free
concert at the local coffee shop?
The amount of money a ticket would have cost if it were not free
The chance to play the latest video game with your roommate while you were at the
concert
Hanging out with your friends at the coffee shop during the concert
The coffee you buy while attending the concert - ANSWER:The chance to play the
latest video game with your roommate while you were at the concert
Lucinda collects Beanie Babies, and can afford to buy up to six of them. The table
below describes the marginal benefit Lucinda gets for each additional Beanie Baby
she adds to her collection.
Lucinda's Beanie Baby Marginal Benefit
Beanie Babies Marginal Benefit (dollars)
1 $12.00
2 10.00
3 8.00
4 6.00
5 4.00
6 2.00
a. If the price of Beanie Babies is $8.00 per Beanie Baby, how many Beanie Babies
would Lucinda buy if she is rational?
3 Beanie Babies
1 Beanie Baby
4 Beanie Babies
2 Beanie Babies
b. If the price of Beanie Babies rose to $10.00 per Beanie Baby, how many Beanie
Babies would Lucinda buy if she is rational?
3 Beanie Babies
2 Beanie Babies
1 Beanie Baby
4 Beanie Babies - ANSWER:a) 3 beanie babies
b)2 beanie babies
, The table below compares the marginal benefit Lucinda gets from Kewpie dolls and
Beanie Babies.
Kewpie Dolls Beanie Babies
1 $15.00 1 $12.00
2 12.00 2 10.00
3 9.00 3 8.00
4 6.00 4 6.00
5 3.00 5 4.00
6 0.00 6 2.00
a. If the price of Kewpie dolls and the price of Beanie Babies are both $6, how many
of each would Lucinda buy if she were rational?
6 Kewpie dolls and 6 Beanie Babies
4 Kewpie dolls and 4 Beanie Babies
0 Kewpie dolls and 6 Beanie Babies
1 Kewpie doll and 1 Beanie Baby
b. If Lucinda has only $18 to spend and the price of Kewpie dolls and the price of
Beanie Babies are both $6, how many of each would Lucinda buy if she were
rational?
2 Kewpie dolls and 1 Beanie Baby
3 Kewpie dolls and 0 Beanie Babies
1 Kewpie doll and 2 Beanie Babies
0 Kewpie dolls and 3 Beanie Babies - ANSWER:a) 4 Kewpie dolls and 4 Beanie babies
b) 2 Kewpie dolls and 1 Beanie baby
The table below describes the hourly cost Sam faces as he washes more cars.
Complete the missing values in the table.
1 $2 $2
264
3 12 6
4 20 8
5 30 10
6 42 12 - ANSWER:
a. Given the information above, what is Emmanuel's optimal amount of time spent
gardening each week?
1 hour
4 hours
7 hours
By Christopher Ragan
Which of the following can best be characterized as a subject of microeconomics? -
ANSWER:an examination of consumer behavior
Which of the following can best be characterized as a subject of macroeconomics? -
ANSWER:an examination of inflation
_____________examines economies on a large scale, while ______________
examines economic activity on a relatively small scale. - ANSWER:macroeconomics;
microeconomics
Bob, the owner of a deli in his town, needs to purchase something that economists
would label as "capital" to help him produce sandwiches.
Which of the following is an example of capital?
A new idea that automates the making of sandwiches
Ham for the sandwiches
A meat slicer to cut ham for sandwiches
An additional worker - ANSWER:a meat slicer to cut ham sandwiches
Samantha needs to purchase something that economists would label as "labor" to
help her produce court documents for her law firm.
Which of the following is an example of labor?
The ability to see that organizing courtroom documents is an unfilled market need
A stenography machine to type courtroom proceedings
A stenographer who can type courtroom proceedings
Filing cabinets to store the typed courtroom documents - ANSWER:A stenographer
who can type courtroom proceedings
The ability to see a market need and to organize inputs to meet that need is what
type of market resource? - ANSWER:entrepreneurial ability
Which of the following scenarios most accurately reflects the concept of scarcity?
Brett is a farmer with an open field on which he can plant either soybeans or corn.
The steak Henry did not buy because he is a vegetarian.
Terry received a paycheck of $1,000 for helping build a house this week.
Johnny purchased a skinny vanilla latte from Starbucks. - ANSWER:Brett is a farmer
with an open field on which he can plant either soybeans or corn
,The opportunity cost of an action is always equal to:
the things you could have done instead of the action you chose to undertake.
the time you give up to undertake the action.
the money you give up to undertake the action.
the next-best alternative for the resources used to undertake the action. -
ANSWER:the next best alternative for the resources used to undertake
Which of the following best describes the opportunity cost of attending a free
concert at the local coffee shop?
The amount of money a ticket would have cost if it were not free
The chance to play the latest video game with your roommate while you were at the
concert
Hanging out with your friends at the coffee shop during the concert
The coffee you buy while attending the concert - ANSWER:The chance to play the
latest video game with your roommate while you were at the concert
Lucinda collects Beanie Babies, and can afford to buy up to six of them. The table
below describes the marginal benefit Lucinda gets for each additional Beanie Baby
she adds to her collection.
Lucinda's Beanie Baby Marginal Benefit
Beanie Babies Marginal Benefit (dollars)
1 $12.00
2 10.00
3 8.00
4 6.00
5 4.00
6 2.00
a. If the price of Beanie Babies is $8.00 per Beanie Baby, how many Beanie Babies
would Lucinda buy if she is rational?
3 Beanie Babies
1 Beanie Baby
4 Beanie Babies
2 Beanie Babies
b. If the price of Beanie Babies rose to $10.00 per Beanie Baby, how many Beanie
Babies would Lucinda buy if she is rational?
3 Beanie Babies
2 Beanie Babies
1 Beanie Baby
4 Beanie Babies - ANSWER:a) 3 beanie babies
b)2 beanie babies
, The table below compares the marginal benefit Lucinda gets from Kewpie dolls and
Beanie Babies.
Kewpie Dolls Beanie Babies
1 $15.00 1 $12.00
2 12.00 2 10.00
3 9.00 3 8.00
4 6.00 4 6.00
5 3.00 5 4.00
6 0.00 6 2.00
a. If the price of Kewpie dolls and the price of Beanie Babies are both $6, how many
of each would Lucinda buy if she were rational?
6 Kewpie dolls and 6 Beanie Babies
4 Kewpie dolls and 4 Beanie Babies
0 Kewpie dolls and 6 Beanie Babies
1 Kewpie doll and 1 Beanie Baby
b. If Lucinda has only $18 to spend and the price of Kewpie dolls and the price of
Beanie Babies are both $6, how many of each would Lucinda buy if she were
rational?
2 Kewpie dolls and 1 Beanie Baby
3 Kewpie dolls and 0 Beanie Babies
1 Kewpie doll and 2 Beanie Babies
0 Kewpie dolls and 3 Beanie Babies - ANSWER:a) 4 Kewpie dolls and 4 Beanie babies
b) 2 Kewpie dolls and 1 Beanie baby
The table below describes the hourly cost Sam faces as he washes more cars.
Complete the missing values in the table.
1 $2 $2
264
3 12 6
4 20 8
5 30 10
6 42 12 - ANSWER:
a. Given the information above, what is Emmanuel's optimal amount of time spent
gardening each week?
1 hour
4 hours
7 hours
