Micro Ecnomics CH. 1 homework questions

Pham can work as many or as few hours as she wants at the college bookstore for $12 per hour. But due to her hectic schedule, she has just 15 hours per week that she can spend working at either the bookstore or multiple other potential jobs. One potential job, at a café, will pay her $15 per hour for up to 6 hours per week. She has another job offer at a garage that will pay her $13 an hour for up to 5 hours per week. And she has a potential job at a daycare center that will pay her $11.50 per hour for as many hours as she can work. Assume that the travel time between job locations is negligible. If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore?

4 hrs

Suppose that you are given a $100 budget at work that can be spent only on two items: staplers and pens. If staplers cost $10 each and pens cost $2.50 each, then the opportunity cost of purchasing one stapler is:

4 pens

Why is entrepreneurial ability distinct from labor even though both are considered a category of economic resource?

Because entreprenuerial ability is not directly engaged in production.

Potatoes cost Janice $1 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30 per pount.

How many pounds of potatoes will she purchase? 3 pounds of potatoes b. How many pounds would she purchase if she only had $2 to spend? 2 .pounds of potatoes

What roles do entrepreneurs play in the economy?

Innovate, take risks, and make decisions

Which of the following represents a normative economic statement?

The government ought to lower taxes so people have more money.

Explain how (if at all) each of the following events affects the location of a country's production possibilities curve:

The quality of education increases: Curve shifts outward Correct. b. The number of unemployed workers increases: No change Correct. c. A new technique improves the efficiency of extracting copper from ore: Curve shifts outward Correct. d. A devastating earthquake destroys numerous production facilities: Curve shifts inward Correct.

c. 43,277 units at which MC = $99 and MB = $99

current amount

11 units at which MC = $4 and MB = $3:

fewer

Suppose a city block was going to be used for a parking lot in both New York City and a small town. The opportunity cost would be

greater in New York City because the alternative uses of the city block are more valuable.

The unemployment rate in the United States was 3.7 percent in December 2018: b. A U.S. software firm laid off 15 workers last month and transferred the work to India: c. An unexpected freeze in central Florida reduced the citrus crop and caused the price of oranges to rise: d. U.S. output, adjusted for inflation, increased by 2.3 percent in 2017: . e. Last week Wells Fargo Bank lowered its interest rate on business loans by one-half of 1 percentage point: f. The consumer price index rose by 2.2 percent from November 2017 to November 2018:

macro, micro, micro, macro,micro, macro

3,000 units at which MC = $10 and MB = $13

more

In a market system, the allocation of scarce goods involves the consideration of

must be sacrificed in using a resource for its next-best use

Money is not considered a capital resource in economics because money is

not productive

Which of the following best describes the concept of "utility" and purposeful behavior?

satisfaction from consuming goods and services

Which of the following represents a positive economic statement?

the unemployment rate is 4.8 percent