Thanks to Beth Runciman for asking some questions about the homework. Here they are, and also my answers.
Dr. Hartman,
I am wondering about the answers you gave for Chapter 2, question 3 and Chapter 4, question 3. For Chapter 2, #3 the countries should be many worker economies with indivuals that have varrying opportunity costs. Thus it seems the PPC should be curved and the low-hanging-fruit principle would apply. Am I not understanding something as your answers show a constant opportunity cost. Also, the last statement of question 3 for Chapter 4 seems to be normative, the key work being “should”. Again am I missing something? Why is the key word asserted? Thanks for your help, Beth Runciman
My answers:
Chapter 2, #3:
The problem says: The opportunity cost of a car in Outlandia is 300 bushels of wheat.
That means, at all times. Therefore the slope of the ppc is constant, and so is a straight line.
So the lhf principle does not apply!!!Last statement of question 3 for Chapter 4 seems to be normative:
Problem says:
The Speaker of the House of Representatives asserted that there should be a balanced budget amendmentWe can check if he said it. What he said was a normative statement, but the assertion that he said it is positive!
Supply Chain and Logistics 