Macroeconomics Ch 1,3,4
Which of the following examples illustrate why even the 1,826 billionaires in the world face scarcity? 1. Mark Zuckerberg wants everyone in the world to have Internet access. 2. Donald Trump ran for the job of President of the United States. 3. Bill Gates wants to eradicate malaria. 4. George Soros thinks China will implode. 5. Warren Buffet is a successful fund manager. 6. Sergey Brin wants the content of every book ever published to be available to a Google search
1, 3, and 6
Label each entry in the list as dealing with a microeconomic topic or a macroeconomic topic 1. Motor vehicle production in China is growing by 10 percent a year. 2. Coffee prices rocket. 3. Globalization has reduced African poverty. 4. The government must cut its budget deficit. 5. Apple sells 20 million iPhone 6 a month.
1. Microeconomic 2. Microeconomic 3. Macroeconomic 4. Macroeconomic 5. Microeconomic
Every week, Hassan plays the guitar for two hours, and his grade on each psych test is 80 percent. Last week, after playing for two hours, Hassan considered playing for an additional hour. He decided to play for another hour and cut his study time by one hour, but last week his psych grade was 65 percent. What was Hassan's opportunity cost of the third hour of playing the guitar?
A 15 percentage point drop in his psych grade
Jurassic World had world-wide box office receipts of $1.66 billion. Suppose that Chris Pratt, the leading actor, had been offered a part in another movie and that to hire him for Jurassic World, the producer had to double his pay. Chris Pratt might have had ________ incentive to make Jurassic World and the movie producer might have had an incentive to ______ .
A bigger; reduce the budget for supporting actors
When you buy a movie ticket, you are buying ________
A service
The marginal benefit from producing the blockbuster movie includes _______.
An increase in reputation as a movie producer
Rational choice is a choice that uses that available resources to ________ of the person making the choice
Best achieve the objective
Choose the statement that is incorrect.
Choices that are made in the self-interest cannot benefit the social interest
Hewlett-Packard will cut 30,000 jobs and lower its cost by $2.7 billion a year. Explain how Hewlett-Packard's decision made in its self-interest might also be in the social interest. Hewlett-Packard's decision is also in the social interest if Hewlett-Packard ________.
Cuts its product prices and the laid-off workers find jobs that pay higher wages
With black friday off with full pay, explain what is free and what is scarce Choose the statement that is incorrect
Employees are being paid to take a vacation, so the time spent with their families is free
What is the opportunity cost of the trip to Hawaii for each of them?
For Pam and Pat, the opportunity cost is a cruise and for Pru, it is skiing
1. Harrod's, a London department store, is opening branches in airports, and Taco Bell is expanding throughout Canada 2. Lottery Tickets must state the odds of winning
Harrods and Taco Bell make decisions in self-interest and by serving the self-interest of customers they contribute to the social interest Information on the odds of winning is in the social interest, but people's decisions about whether to pay attention to them is in self-interest
The marginal cost faced by the producer of a movie includes the cost of ________.
Hiring the crew for the additional day
The news headline "Consultants replacing high school counselors" deals with the ________ questions of economics.
How
Why would you expect a lower price to increase the number of people who decide to take a cruise? With a lower price, more people will decide to take a cruise because the lower price _________.
Increases everyone's net benefit from taking a cruise
Pam, Pru, and Pat are deciding how they will celebrate the New Year. Pam prefers to take a cruise, is happy to go to Hawaii, but does not want to go skiing. Pru prefers to go skiing, is happy to go to Hawaii, but does not want to take a cruise. Pat prefers to go to Hawaii or to take a cruise but does not want to go skiing. Their decision is to go to Hawaii. Is this decision rational?
It is a rational decision if they each get more pleasure from doing the same thing than from doing their own thing
What is an example of microeconomics
People prefer buying iphones over nokia phones
Jurassic World had world-wide box office receipts of $1.66 billion. The movie's production budget was $150 million with additional marketing costs. A successful movie brings pleasure to millions, creates work for thousands, and makes a few people rich. Jurrassic World makes a contribution to coping with scarcity because it _______.
Provides an enjoyable experience that satisfies a want
Every week, Sally plays tennis for four hours, and her grade on each English test is 80 percent. Last week, after playing for four hours, Sally considered playing for another hour. She decided to play for another hour and cut her study time by one hour. But last week, her English grade fell to 60 percent. Did Sally make her decision on the margin?
Sally made her decision at the margin because she considered the benefit and cost of one additional hour of tennis
REI is paying its employees to take Black Friday, Thanksgiving off REI, the outdoor gear and apparel retailer, is paying employees to celebrate Thanksgiving 2015 by spending Black Friday outdoors with their families. Source: Sustainable Brands, October 28, 2015 Do you think that REI workers will shop or spend the day with family? REI workers will spend the day _______.
Shopping if the marginal benefit from shopping exceeds the marginal cost
What is an example of macroeconomics
The US unemployment rate has increased by 0.4 percent
What is the benefit from the trip that each gets
The benefit that each person gets from the trip is the pleasure of being in Hawaii together
Economics studies choices that arise from one fact. What is that fact?
The fact is scarcity-human wants exceed the resources available.
When Bob plays guitar for four hours, and his grade on the economics test is 95 percent. Last week, after playing for four hours, Bob considered playing guitar for a fifth hour. He decided to play for one additional hour and cut his study time by one hour, but his economics grade fell to 75 percent. What can you conclude about Bob's marginal benefit and marginal cost of the fourth hour of playing guitar?
The marginal benefit from the fourth hour of playing guitar exceeded its marginal cost
Every week, Ben does gymnastics for three hours, and his grade on the weekly French test is 85 percent. Last week, Ben decided to work out for an additional hour and study for an hour less. Ben's French grade fell to 80 percent. Was Ben's decision to work out for an additional hour rational? Ben's decision was rational if _____.
The marginal benefit from the third hour exceeded its marginal cost
How does the BLS expect what and for whom goods and services are produced to change in the next five years?
The quantities of the goods and services produced by workers in health care, leisure, hospitality, and education will increase, and these workers will be able to buy more the goods and services produced
Which of the following described the reason why scarcity exists
Wants exceed the resources available to satisfy them
The news headline "Space travel only for rich and fit" deals with the _______ questions of economics.
What and for whom
The news headline "Working mothers want better day care" deals with the _______ questions of economics.
What and for whom
The news headline "New fuel sends NASA back to moon" deals with the _______ questions of economics
What and how
What would be the marginal benefit from a cruise? What would be the marginal cost of a cruise? The marginal benefit from a cruise is _______ the cruise. The marginal cost of a cruise is what you _______ to take the cruise.
What you are willing to give up to go on; must give up
Jurrassic World is ______goods and services are produced; the people and equipment used to create the movie are ______ goods and services produced; and the incomes earned by the people who worked on the movie are ______ goods and services are produced.
What, how, for whom
A choice on the margin is a choice that is made by comparing all the relevant _____ systematically and _____. Marginal cost is the _____ that arises from one unit _____ in an activity. Marginal benefit is the _____ that arises from one unit _____ in an activity.
alternatives; incrementally; opportunity cost; increase; benefit; increase
A rational choice is ______
made by comparing marginal benefit and marginal cost
The ____________ decide if a movie is going to be a blockbuster
movie-goers who buy a ticket
An economic model is a description of some features of the economic world that includes _____ features assumed necessary to explain the _____facts.
only those; observed
A statement is a statement about what is. A statement is about what ought to be.
positive normative
Facebook serves ____.
the self interest of its investors, users, and advertisers, and the social interest by enabling people to share information
The New York Times reports that cruise lines have been slashing prices and cruise sales are up. It says this surge of interest tells us that despite the uncertain economic climate, people clearly need more fun in their lives and view their vacations as a valuable and necessary part of it. In deciding whether to take a cruise, would you face a tradeoff? You _____ face a tradeoff because _____.
would; you would forgo something else that you might do
