ECON CHAPTER 1 HW ASSIGNMENT
The diagram to the right shows a hypothetical demand curve for apples. The slope of this curve is _____ (The concept is slope in a decreasing form)
-1.17
A hypothesis in an economic model is
-usually about a causal relationship. -tested before it can be accepted (or not rejected). -a statement that may be either correct or incorrect about an economic variable. (The answer is all of the above)
The pie chart illustrates hypothetical data for the market share for the United States automobile market. The percentage of the U.S. market that U.S. auto firms control is enter your response here_______%. (The concept is reading the pie chart.)
60%
In your economics class, you scored a 62 on the first quiz, a 86 on the second quiz, and an 84 on the third quiz. Your average quiz grade is ______________ On the fourth quiz, you scored an 82. Did the fourth quiz raise your average? ___________
62 + 86 + 84 = 232 232/3 = 77.3 Average = 77.3 YES
When we graph the relationship between two variables, we often want to draw conclusions about whether changes in one variable are causing changes in the other variable. Doing so, however, can lead to incorrect conclusions. Reasons for drawing incorrect conclusions about cause and effect include
A. an omitted variable. B. reverse causality. (The answer was choice c because it was both a and b were correct)
The diagram to the right illustrates a hypothetical demand curve representing the relationship between price (in dollars per unit) and quantity (in 1,000s of units per unit of time). The area of the triangle shown on the diagram is $___________
Area = 1/2 * Base*Height Area = Revenue 0.5 * (75-28)*(62000-15000) = 1,104,500 area = revenue = 1,104,500
A market is a group of ___________of a good or service and the institution or arrangement by which they come together to trade.
Buyers and Sellers
_____________decide(s) what goods and services will be produced.
Consumers, firms, and government
__________is the study of the choices people make to attain their goals, given their scarce resources.
Economics
Trade-offs force society to make choices, particularly when answering the following three fundamental questions:
One, what goods and services will be produced? Two, how will the goods and services be produced? Three, who will receive the goods and services produced?
Microsoft charges a price of $599 for a copy of Windows 7. Is this pricing decision rational?
When we assume the managers at Microsoft have used all available information and have weighed all known benefits and costs, we are assuming rationality.
The diagram to the right is an example of
a time-series graph.
The diagram to the right illustrates a common economic relationship. Economists know this relationship as marginal cost (MC). The diagram illustrates the relationship between the change in total cost and quantity produced. There are three lines (A, B, and C) drawn tangent to the MC curve. At line A, the MC curve has a _____ slope. Where lines B and C touch the MC curve, the slope is _____ and _____. ( testing the ability to read graphs )
negative; positive; increasing
The diagram to the right illustrates a very important relationship in economics between two variables: the price of a good and the quantity demanded of that good. The two variables in this diagram are:
price (dollars per bushel) on the vertical axis and quantity (bushels per week) on the horizontal axis. (The concept was being able to read a bar graph)
Equity is
the fair distribution of economic benefits.
Opportunity cost is
the highest valued alternative that must be given up to engage in an activity.
When the federal government crafts environmental policies that make it less expensive for firms to follow green initiatives,
the policies are consistent with economic incentives.
In the diagram to the right, the curve labeled "S" is apparently _____, while the curve labeled "D" is apparently _____.
nonlinear; linear
Economists often are interested in percentage change from one period to the next. The percentage rate of change of gross domestic product (GDP) is an important macroeconomic variable. If in 2010 GDP was $11,150 billion dollars, and GDP increased to $11,409 billion in 2011, what is the growth rate of the U.S. economy in 2011?
((Value in the second period - value in the first period)/ Value in the first period) X 100 = percent change (((11,409*10^9)-(11,150*10^9))/(11,150*10^9)) *100 = 2.3%
Economics is a social science because
-it considers human behavior—particularly decision-making behavior. -it applies the scientific method to the study of the interactions among individuals. -it is based on studying the actions of individuals. (The answer is all of the above)
Any model is based on making assumptions because
-models have to be simplified to be useful. -we cannot analyze an economic issue unless we reduce its complexity. (The answer is both a and b)
Refer to the graph on the right What percentage of the marbles are blue? What fraction of the marbles are yellow? What fraction of the marbles are red? (Enter your response as a decimal rounded to two decimal places.)
11.9% 28/84 0.12
The bar graph to the right illustrates hypothetical data for the market share for the United States automobile market. The percentage of the U.S. market that U.S. auto firms control is _________%
45%
The slope of a curve is defined as the ___________divided by the___________. (Assume the Y values are on the vertical axis and the X values are on the horizontal axis).
Change in Y ; Change X
The bar graph to the right illustrates hypothetical data for the market share for the United States automobile market. The percentage of the U.S. market that U.S. auto firms control is enter your response here%.
D3 is under the original line of D1 showing a lesser demand/price/revenue meaning there was a decrease.
Which of the following covers the study of topics such as inflation or unemployment?
Macroeconomics
The diagram to the right illustrates a hypothetical demand curve representing the relationship between price (in dollars per unit) and quantity (in 1,000s of units per unit of time). Total revenue is $__________
P=40 and Q=50000 total revenue =Price *quantity = 40*50000=2000000 the total revenue is $2000000
_______________occurs when a good or service is produced at the lowest possible cost. _______________occurs when production is in accordance with consumer preferences.
Productive efficiency; Allocative efficiency
Societies organize their economies in two main ways to answer the three questions of what, how, and who. A society can have a __________economy in which the government decides how economic resources will be allocated. Or a society can have a __________ economy in which the decisions of households and firms interacting in markets allocate economic resources.
centrally planned; market
Microeconomics is the study of
how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices.
In the United States, who receives the goods and services produced depends largely on___________
how income is distributed
Firms choose how to produce the goods and services they sell. In many cases, firms face a trade-off between using more workers or using more machines. For example,
many times in the past several decades, firms may have chosen between a production method in the United States that uses fewer workers and more machines and a production method in China that uses more workers and fewer machines.
Economists use the word marginal to mean an extra or additional benefit or cost of a decision. An optimal decision occurs when
marginal benefit equals marginal cost.
A _________economy is an economy in which most economic decisions result from the interaction of buyers and sellers in markets but in which the government plays a significant role in the allocation of resources.
mixed
The diagram to the right illustrates a supply curve. As with all supply curves, this curve's slope is_________
positive
_________is concerned with what is, and __________is concerned with what ought to be. Economics is about _________which measures the costs and benefits of different courses of action.
positive analysis ; normative analysis ; positive analysis
One of the basic facts of life is that people must make choices as they try to attain their goals. This unavoidable fact comes from a reality an economist calls Part 2
scarcity
Macroeconomics is
the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth.
Which of the following shows a positive nonlinear relationship? (assume values of x>0)
y = 27 + sqrt x not y = 94/x
