smartwork5 chapter 1

Macroeconomics

- The exchange rate between Mexican pesos and U.S. dollars - How a cut in federal income tax rates affects economic growth - The current unemployment rate - Inflation was fueled by an increase in rent and energy prices. - The unemployment rate has decreased for the second consecutive quarter.

Microeconomics

- Your decision on whether to buy one additional slice of pizza - The impact of unusually cold weather on the market for oranges - A five-year plan for Microsoft that projects hundreds of billions in new profits for the company - Tesla's decision to sell its cars in Mexico - Your decision to go back to school to get an MBA - Value Petrol lowers the prices of all grades of gasoline in response to a newly opened competitor. - Mika negotiates a long-term contract for capital equipment for her property management business.

the marginal benefit of having a bowl of ice cream outweighs the marginal cost.

Although you are feeling full after a large dinner, you are considering having a bowl of ice cream. You will choose to eat the ice cream if

5 hours

Matias spent 10 hours studying for an exam, and he received an A on the exam. Normally, he would have spent that time watching TV instead of studying. Matias figures he could have made a B after studying only 5 hours, but he really wanted an A. What is Matias 's marginal cost in terms of TV viewing to move from a B to an A on the exam?

(9*3)+30= $57

Sam has two options this weekend. He could work at his job and earn $9 per hour for three hours, or he could go to a show at the theater for that three hours. A ticket for the event costs $30. What is the opportunity cost of the event?

true

Voluntary trade among rational individuals creates value for everyone involved.

a direct

When Jennifer and Erin lower the price at their restaurant, it provides _________________ incentive for customers to choose it when they would not have otherwise done so. This leads to increased sales at the restaurant.

Macroeconomics is the study of

the overall economy

trade-offs & marginal thinking

Daniel and his intramural team just won the co-ed volleyball tournament, and they're celebrating at an all-you-can-eat pizza place. Daniel has had four slices of pizza and is trying to decide whether to have a fifth slice. He does not have to pay for it, but he is thinking about whether feeling overfull from the fifth slice are worth it. Which foundation(s) of economics is he applying?

(46-42)+(80-46)= $38

Deltra was willing to purchase a dozen cookies for $80 that Deirdre was willing to sell for anything more than $42. If they agreed on a price of $46, how much total value was created in this exchange?

limited; unlimited

Economics is the study of how people allocate their _________ resources to satisfy their ________ nearly wants and needs.

false

Everyone benefits with globalized trade.

false

Comparative advantage is not an important aspect of specialization and trade.

$275

Buying and selling textbooks are two separate decisions made at the margin. Textbooks create value both when they are bought and when they are sold. Think about your decision to buy the textbook for this course. You paid $250 for the book, but you would have been willing to pay $450 to use the book for the semester. Suppose that at the end of the semester you could keep your textbook or sell it back to the bookstore. Once you have completed the course, the book is worth only $50 to you. The bookstore will pay you 50% of the original $250. How much total value have you gained?

a: one of the firms in the economy. b: a product in the product market. c: a resource in the resource market.

Jessica works as a ticket-taker at a local theater. Applying the circular flow model: (a) The theater where Jessica works represents ___________________ (b) The movies that the theater shows represent _________________________ (c) The labor that Jessica provides to the theater represents __________________________

cost of edu per year: (15,000+3,000+10,000)= 28,000 the return if we don't go: (20,000-10,000)= 10,000 the opportunity cost of 4 years of college: (28,000-10,000)*4= $152,000

Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you will pay $15,000 each year for tuition, $3,000 each year for textbooks, and $10,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $20,000 per year. Assume that if you decided not to go to college, your parents would not let you live at home. What is your opportunity cost for four years of college?

An increase in prices by retailers expecting higher demand during the sales tax holiday.

Suppose a state aims to make it easier for people to purchase school supplies for children by exempting these purchases from sales taxes. Such programs are often called "sales tax holidays." Identify which of the following would be considered an unintended consequence of this policy.

bartering; a double coincidence of wants

Suppose you have a Xbox your roommate wants, and your roommate has a Eminem concert ticket that you want. You decide to trade the Xbox for the Eminem concert ticket. You have engaged in what economists call _______________ , which can only occur when there is a ____________________________________ .

(70-39)+(91-70) = $52

Suppose you own a bicycle but haven't found the time to ride it much lately. These days, it is only worth $39 to you. One of your close friends, who recently got a job at the college bookstore two miles down the road, wants to take it off your hands. He offers you $70 for the bicycle, and you gladly accept. Your friend is also happy because he thinks the bicycle is worth $91 . How much total value was created from this trade?

the country's economic production will decrease and incomes will be lower

Think about a country where most economic production results in air pollution that creates lots of smog. What would be the trade-off if the bad result (air pollution) were reduced?

true

Trade helps to create additional growth through specialization.

A trade-off; an opportunity cost

Trade-offs and opportunity costs are closely related topics. _________________ exists when a decision-maker has to choose a course of action that prevents him or her from being able to take another course of action, but an __________________ explains what you give up when you choose to buy a new pair of shoes instead of attending a concert.

the opportunity cost of doing it yourself is more than $100.

You are trying to decide whether to pay a dog walker $100 or do the work yourself. It would be rational to hire a dog walker if

trade-offs

You have always thought that learning to play the guitar would be fun. However, this activity would cost money and require time away from other activities. This situation best exemplifies:

$39

You recently got a job as an usher at the nearby movie theater. Last night, you had the opportunity to work but decided to take your very first vacation day. Suppose you could have earned $8 per hour for three hours of work. Instead, you went to a movie yourself, where you spent $15 on a ticket and popcorn. Your opportunity cost to see the movie was