Solutions Manual for Essentials of Economics 10th Edition by Schiller IBSN 125923570x

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Solutions Manual for Essentials of Economics 10th Edition by Schiller IBSN 125923570x Full download: essentials of economics 10th edition pdf free download essentials of economics schiller pdf essentials of economics 9th edition pdf essentials of economics schiller 9th edition pdf download essential of economics 10th edition pdf essentials of economics schiller 9th edition free pdf essentials of economics pdf schiller essentials of economics 9th edition
  Solutions Manual for Essentials of Economics 10th Edition by Schiller IBSN 125923570x Full download:  Test Bank for Essentials of Economics 10th Edition by Schiller IBSN 125923570x Full download:  ANSWERS TO QUESTIONS FOR DISCUSSION AND PROBLEMS QUESTIONS FOR DISCUSSION  1. Americans already enjoy living standards that far exceed world averages. Do we have enough? Should we even try to produce more? (LO 2-2)  Answer: The reality of human nature is that needs are culturally conditioned. There is never enough. Just to maintain living standards as population grows will require more output. 2. Why do we measure output in value terms rather than in physical terms? For that matter, why do we bother to measure output at all? (LO 2-1)  Answer: Our economy produces thousands of different items, ranging from paper clips to sophisticated electronic equipment. Value estimates are a common denominator for measuring all of these different things. In addition, in our complex and decentralized market economy, it is impossible to account for every item of output produced. Sales records are more available for estimates of value than are output numbers across the economy. Measures of output provide benchmarks that show if growth is occurring and at what rate. 3. Why do people suggest that the United States needs to devote more resources to investment goods? Why not produce just consumption goods? (LO 2-3)  Answer: Investment goods are capital goods such as machines and factories that help us produce more output. If we concentrated on only consumption goods, we would be unable to replace our machines as they wore out or to expand our productive capacity by producing more, and more efficient, machines. 4. The U.S. farm population has shrunk by over 25 million people since 1900. Where did they all go? Why did they move? (LO 2-4)      Answers: They went to the cities to become factory workers and service workers because there were jobs available for them in those sectors of the economy. There were fewer and fewer jobs in the agricultural sector because of the advances of technology in that sector. 5. Rich people have over 15 times as much income as poor people. Is that fair? How should output be distributed? (LO 2-5)  Answer: Fair is generally considered to be a relative term. On an individual basis, many would consider it ‘ f  air’  if they personally received more or if someone else received less. In a market economy, the distribution of output (and therefore income) is determined primarily by the laws of supply and demand. This often results in an unequal distribution. However, in order to make sure that the distribution is not so unequal that we have people literally starving to death in the streets, the government steps in and lessens the degree of inequality through various programs and tax policies. Thus, at some point, fairness does become less subjective and more objective when the inequality causes lives being put at risk, which, once recognized, results in a redistribution of income. 6. If taxes were more progressive, would total output be affected? (LO 2-5)  Answer: Taxes create a disincentive to engage in any activity that is being taxed. If taxes were more progressive, people who face the higher taxes would have less incentive to work. As a result, total output would decline. 7. Why might income inequalities diminish as an economy develops? (LO 2-5)  Answer: As an economy develops, more jobs become available and thus more people will work and earn incomes. There will also be more capital available and therefore labor productivity  –  and income of workers  –  will rise. Although incomes will not likely be equalized, on average there should be, and generally is, less income disparity. 8. Why is per capita GDP so much higher in the United States than in Mexico? (LO 2-3)  Answer: U.S. workers have much more capital, technology, and education to work with, which raises their productivity (output per worker) far above that of Mexican workers. 9. Do we need more or less government intervention to decide WHAT, HOW, and FOR WHOM? Give specific examples. (LO 2-4)  Answer: It really depends on the type of goods and services society would like to see provided. Some products such as clean water and clean air are not usually provided well by private markets and more government intervention might be desired. Other products such as computers, food, etc., are usually best provided by markets and less government intervention might be desired. 10. POLICY PERSPECTIVES What can poor nations do to raise their living standards? (LO   2-3)  Answer: This is a complicated issue. A few of the things that poor nations can do to raise their living standards include increasing their investment/consumption ratio, investing in human capital, and reducing illiteracy. Many believe that poor nations will need the assistance of the rich nations of the world to achieve this goal. PROBLEMS  1. Use the figure below to answer the following questions. (a) What is the opportunity cost of increasing investment from 6 units to 8 units? (b) What will happen to future production possibilities if investment increases now? (c) What will happen to future production possibilities if only consumer goods are produced now? (LO 2-1)   Answers:  (a) 3 units of consumer goods (b) production possibilities will increase, shifting the ppc to the right (c) production possibilities will decrease, shifting the ppc to the left Explanation:  (a) The opportunity cost of increasing investment is the loss of consumer goods. Specifically, when investment goods increase from 6 to 8, consumer goods decrease from 6 to 3, a decrease of 3 units.
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