homework 1

You plan to travel in Europe this summer. If you​ do, you​ won't be able to take your usual summer job that pays $8,000 for the​ summer, and you​ won't be able to live at home for free. The cost of transportation is ​$3,000​, visas cost ​$300, and living expenses are ​$1,700. What is the opportunity cost of your plan to travel in​ Europe?

$1300

If Y = 800 - 4X, what is the slope of this line?

-4

​______ earns​ ______.

A coal deposit​; rent

In what type of economy does the government decide how most economic resources will be allocated?

Centrally planned economy

According to the economic way of thinking, people:

Compare costs and benefits and make a choice to achieve the greatest benefit over the cost for the person making the choice.

Economic decisions are made at every level in society. When we try to decide which production method to use among several alternatives, which of the following key economic questions are we trying to answer?

How do we produce the products?

Which of the following is a positive economic statement?

If minimum wage rates rise, then unemployment will rise.

Which of the following best defines capital as a factor of​ production?

Instruments, machines, and buildings used in production.

Who is Chairman of the Board of Governors of the Federal​ Reserve?

Janet Yellen

__________ is the study of how households and businesses make choices, how they interact in markets, and how government influences their choices.

Microeconomics

Anything accepted as a means of payment Makes trading efficient Facilitate trade Enable​ buyers/sellers to get info and do business with each other Hire factors of production Organize factors of production to produce and sell goods and services Govern ownership​ & use of things people value Provide incentive to​ specialize/produce

Money Markets Firms Property rights

Every​ week, HassanHassan skates for one hour​, and his grade on each econ test is 90 percent. Last​ week after skating for one hour​, hassan considered skating for another hour. He decided to skate for another hour and cut his study time by one hour. But last​ week, his econ grade fell to 70 percent. Given that Hassan spent a second hour skating​, what can you conclude about the marginal benefit and marginal cost of the first hour of skating​?

The marginal benefit of the first hour of skating exceeded its marginal cost.

Macroeconomics focuses on which of the following topics?

Unemployment, inflation, growth, and trade

Graphs are often used in economics because they:

can simplify complex topics

What kind of economic system relies on private ownership of​ resources, direct incentives and decisions made via markets and the price​ mechanism?

capitalism

Macroeconomics can be used to understand all of the topics listed below, except:

how a consumer decides between the purchase of two different cars

Factors of production include all of the following EXCEPT​ ________.

money

Jobs alone are not the measure of economic​ well-being. If this were the​ case, then we could increase the​ well-being of an economy by giving highway workers spoons rather than backhoes and garment workers needles and thread instead of computerized sewing machines. What does provide the source of high living​ standards?

production of goods and services people value

Economics is the study of choice under conditions of:

scarcity

The principle of opportunity cost evolves from the concept of:

scarcity

The slope of a straight line equals the change in the value on the __________ axis __________ by the change in the value of the other axis measured between any two points on the line.

vertical, divided

All economic questions arise because we

want more than we can get.

The what​, how​, and for whom questions in economics are questions about​ ______.

what goods and services do we​ produce, how do we use the factors of production to produce these​ goods, and who consumes the goods and services that are produced

The slope at a line tangential to the maximum or minimum of a nonlinear curve will always be equal to:

zero

You plan to go to school this summer. If you​ do, you​ won't be able to take your usual summer job that pays ​$12,000 for the summer. The cost of tuition is ​$3,000 and textbooks cost ​$100 You live with your​ family, which covers your living expenses of ​$1,700. What is your opportunity cost of going to school this​ summer?

$15,100

Your employer has asked you to start working overtime and has offered to pay​ $18 per hour for every hour you work beyond forty hours a week. The wage rate for each of the first forty hours will continue to be the usual​ $15 per hour. In terms of​ dollars, what is the marginal benefit of working each hour of​ overtime?

$18.00

Marilyn​, a computer science student, buys three cups of coffee a​ day, which costs her ​$9.00 She decides to buy one more cup each day and her expenditure on coffee increases to ​$12.00 The marginal cost to Marilyn of a cup of coffee is​ _______.

$3.00

The night before a midterm​ exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your exam. If you had studied the night​ before, you'd have scored 70 percent. What was the opportunity cost of your evening at the​ movies?

10 percent off your grade.

Which of the following countries has an economy where most of the resource allocation is determined by a central planning authority?

North Korea

Which of these is a macroeconomic study?

The study of how fast prices in general are rising.

Which of the following is not a possible opportunity cost of attending college?

cost of housing

What are the four goals of any economic​ system? (Order does not matter but spelling​ does! Separate them with a​ comma.)

efficiency, equity, stability, growth

Understanding economics can help policymakers devise strategies to do all of the following except:

eliminate climate change

One of the first steps in deciding whether to complete your education is to:

evaluate the marginal cost and marginal benefit of that decision.

Scarcity​ - be it in​ time, talent, or money​ - forces all of us to make choices. But according to​ economists, those choices can be influenced. What do choices respond​ to?

incentives

Economics:

is concerned with how people respond to incentives

A movie star is an example of the factor of production​ _______.

labor

The resources provided by nature and used to produce goods and services are also known as:

land

Which of these covers the study of topics such as inflation and unemployment?

macroeconomics

If the president announced that "we should do something to stimulate economic growth" this is an example of a __________.

normative statement

The stock of computers, factory buildings and machine tools used to produce goods is known as:

physical capital

Macroeconomics is concerned with all of the following except:

political party affiliation

The role of the entrepreneur always involves:

taking risks

The opportunity cost of any action is

the highest−valued alternative given up.

​"Kids learning business basicsKids learning business basics​" involves a​ ______ question. "Fiber replaces aluminum in airplanesFiber replaces aluminum in airplanes​" involves a​ ______ question. ; "Delta Airlines fails to reach deal with pilotsDelta Airlines fails to reach deal with pilots​" involves a ______ question.

what; how for whom

Which of the following is​ correct? Factors of production are

the inputs used to produce goods and services.

Before starring as Tony Stark in Iron Man​, Robert Downey Jr. had played in 45 movies that had average​ first-weekend box office revenues of a bit less than​ $5 million. Iron Man grossed​ $102 million in its first weekend. The success of Iron Man​ ______ the opportunity cost of hiring Robert Downey Jr. Movie producers now have​ ______ incentive to hire Robert Downey Jr.

​increases; more