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Fifth Edition Economics A Contemporary Introduction William A. McEachern Some Tools of Economic Analysis

Fifth Edition Economics A Contemporary Introduction William A. McEachern Some Tools of Economic Analysis. Case 1: You are a faster typist and your roommate is a faster ironer . Output per Hour Each Does Own Each Specializes

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Fifth Edition Economics A Contemporary Introduction William A. McEachern Some Tools of Economic Analysis

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  1. Fifth EditionEconomics A Contemporary Introduction William A. McEachern Some Tools of Economic Analysis

  2. Case 1: You are a faster typist and your roommate is a faster ironer. Output per Hour Each Does Own Each Specializes Typed Ironed Typed Ironed Papers Shirts Papers Shirts You 1 3 2 0 Roommate 1 0 0 12 Total 2 3 2 12 Exhibit 1a: Comparative Advantage: Maximizing Output 2 Some Tools of Economic Analysis

  3. Case 2: You are a faster typist and a faster ironer, but you are a comparatively faster typist. Output per Hour Each Does Own Each Specializes Typed Ironed Typed Ironed Papers Shirts Papers Shirts You 1 3 2 0 Roommate 1 0 0 5 Total 2 3 2 5 Exhibit 1b: Comparative Advantage: Maximizing Output 3 Some Tools of Economic Analysis

  4. Exhibit 2:The Economy’s Production Possibilities Frontier Some Tools of Economic Analysis

  5. Exhibit 3a:Shifts in the Economy’s Production Possibilities Frontier (Increase in Available Resources) Some Tools of Economic Analysis

  6. Exhibit 3b:Shifts in the Economy’s Production Possibilities Frontier (Decrease in Available Resources) Some Tools of Economic Analysis

  7. Exhibit 3c:Shifts in the Economy’s Production Possibilities Frontier (Increase in Resources or Technological Advance that Benefits Consumer Goods) Some Tools of Economic Analysis

  8. Exhibit 3d:Shifts in the Economy’s Production Possibilities Frontier (Increase in Resources or Technological Advance that Benefits Capital Goods) Some Tools of Economic Analysis

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