Question
In: Economics
(a) Farmer Sherry can grow wheat and barley. She can grow 75 bushels of wheat or...
(a) Farmer Sherry can grow wheat and barley. She can grow 75
bushels of wheat
or 125 bushels of barley on a hectare of her land for the same
cost. The price of wheat is $2 per bushel
and the price of barley is $0.80 per kilogram. Show the benefits to
Sherry of specialization. What should
she specialize in? Why ? (2)
(b) You work as a teacher at your school, making $15 per hour.
Yesterday, you decided to cancel your two-
hour tutoring appointment in order to meet friends for a coffee.
The coffee cost you $3.50. What was the
opportunity cost of this decision in dollars? Explain your
solution! (2)
(c) Give two examples of each of the following: (4)
(i) Positive economic statement, (ii) Normative statement (iii)
Micro Economics (iv) Macro Economics
Solutions
Expert Solution
Ans a is shown in image .Sherry should specialize in barley
Ans b sacrificed amount for 2 hours =15×2= $30
add amount spent on coffee=$ 3.50
opportunity cost =30 +3.50= $33.50
Ans c example of positive economics
India is second largest population country in the world
22% of Indian population is below poverty line
examples of normative economics
India should strictly adopt two child norm to control rapidly rising population
government should launch more poverty alleviation programs
example of micro economics
market demand, determination of consumer's equilibrium
examples of macro economics
estimation of national income
estimation of aggregate demand
Rahul Sunny answered 1 year agoRelated Solutions
(a) Farmer Sherry can grow wheat and barley. She can grow 75 bushels of wheat or...
(a) Farmer Sherry can grow wheat and barley. She can grow 75
bushels of wheat
or 125 bushels of barley on a hectare of her land for the same
cost. The price of wheat is $2 per bushel
and the price of barley is $0.80 per kilogram. Show the benefits to
Sherry of specialization. What should
she specialize in? Why ? (2)
(b) You work at your school, making $15 per hour. Yesterday, you
decided to cancel your two-
hour...
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