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Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735 Exercise 2
For each of the following,state whether economists would consider it a resource ,and,if they would,identify which of the four types of resources the item is.
a. A computer used by an FBI agent to track the whereabouts of suspected criminals.
b. The office building in which the FBI agent works.
c. The time that an FBI agent spends on a case.
d. A farmer's tractor.
e. The farmer's knowledge of how to operate the tractor.
f. Crude oil.
g. A package of frozen vegetables.
h. A food scientist's knowledge of how to commercially freeze vegetables.
i. The ability to bring together resources to start a frozen-food company.
j. Plastic bags used by a frozen-food company to hold its product.
a. A computer used by an FBI agent to track the whereabouts of suspected criminals.
b. The office building in which the FBI agent works.
c. The time that an FBI agent spends on a case.
d. A farmer's tractor.
e. The farmer's knowledge of how to operate the tractor.
f. Crude oil.
g. A package of frozen vegetables.
h. A food scientist's knowledge of how to commercially freeze vegetables.
i. The ability to bring together resources to start a frozen-food company.
j. Plastic bags used by a frozen-food company to hold its product.
Explanation
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Verified
(a)Computer would be considered as resource by the economists because in the given case computer is helping in production of a service that is tracking down of a suspected criminal.
Secondly,it is a long-lasting item and will help the agent in tracking criminals in future as well.
Computer is a capital resource.
(b)Office building would be considered as resource by the economists because it is the office building from where the agent would operate and will produce the service such as tracking down of criminals,interrogation of suspects etc.
Secondly,it is a long-lasting item and will help the agent in undertaking his or her work in future as well.
Office building is a capital resource.
(c)The time that FBI agent spends on the case would be considered as resource by the economists because it is the time spent by the agent on the case that produces the service in terms of tracking down the criminal or eventual arrest of the criminal and prevention of crime.
Time spent on the case by FBI agent is a labor resource.
(d)Farmer's tractor would be considered as resource by the economists because this tractor would help the farmer in undertaking agricultural operations in smooth manner and producing crops in optimum manner.
Secondly,tractor is a long-lasting item and would help the farmer in crop production in years to come.
Farmer's tractor is a capital resource.
(e)The farmer's knowledge of how to operate the tractor would be considered as resource by the economists because it is this knowledge that enables the farmer to operate the tractor in right manner and produce the crops in optimum quantity.
This knowledge is a entrepreneurship resource.
(f)Crude oil would be considered as a resource by the economists because it is a natural resource and all natural resources are considered as resource by the economists.
Secondly,it helps in production of almost all goods and services.
Crude oil is a land resource.
(g)A package of frozen vegetables would not be considered as resource by the economists because it is an input that will help in preparation of meal.
Secondly,frozen vegetables themselves are produced by the resources like land,labor etc.
(h)This would be considered as resource by the economists because through the use of this knowledge large freezers (goods)will be produced and thus vegetables can be freeze commercially.
This knowledge is a entrepreneurship resource.
(i)This ability would be considered as resource by the economists because it is due to this ability that other resources such as land,labor,and capital will come under one roof and a frozen food company can be started.
This ability is an entrepreneurship resource.
(j)Plastic bags used by the frozen food company to hold its product would not be considered as resource by the economists because these plastic bags are acting as input in terms of easy delivery of products by the company.
Moreover,plastic bags themselves are produced by the resources like land,labor,capital etc.
Secondly,it is a long-lasting item and will help the agent in tracking criminals in future as well.
Computer is a capital resource.
(b)Office building would be considered as resource by the economists because it is the office building from where the agent would operate and will produce the service such as tracking down of criminals,interrogation of suspects etc.
Secondly,it is a long-lasting item and will help the agent in undertaking his or her work in future as well.
Office building is a capital resource.
(c)The time that FBI agent spends on the case would be considered as resource by the economists because it is the time spent by the agent on the case that produces the service in terms of tracking down the criminal or eventual arrest of the criminal and prevention of crime.
Time spent on the case by FBI agent is a labor resource.
(d)Farmer's tractor would be considered as resource by the economists because this tractor would help the farmer in undertaking agricultural operations in smooth manner and producing crops in optimum manner.
Secondly,tractor is a long-lasting item and would help the farmer in crop production in years to come.
Farmer's tractor is a capital resource.
(e)The farmer's knowledge of how to operate the tractor would be considered as resource by the economists because it is this knowledge that enables the farmer to operate the tractor in right manner and produce the crops in optimum quantity.
This knowledge is a entrepreneurship resource.
(f)Crude oil would be considered as a resource by the economists because it is a natural resource and all natural resources are considered as resource by the economists.
Secondly,it helps in production of almost all goods and services.
Crude oil is a land resource.
(g)A package of frozen vegetables would not be considered as resource by the economists because it is an input that will help in preparation of meal.
Secondly,frozen vegetables themselves are produced by the resources like land,labor etc.
(h)This would be considered as resource by the economists because through the use of this knowledge large freezers (goods)will be produced and thus vegetables can be freeze commercially.
This knowledge is a entrepreneurship resource.
(i)This ability would be considered as resource by the economists because it is due to this ability that other resources such as land,labor,and capital will come under one roof and a frozen food company can be started.
This ability is an entrepreneurship resource.
(j)Plastic bags used by the frozen food company to hold its product would not be considered as resource by the economists because these plastic bags are acting as input in terms of easy delivery of products by the company.
Moreover,plastic bags themselves are produced by the resources like land,labor,capital etc.
Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
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