Chapter 1 Homework 1
which scenario involves no opportunity cost
- It's Friday night and you stay up late talking and hanging out with your Fridays - you can eat lunch with the chemistry club, which is giving out free pizza for lunch to all who come to the table to get it
The day-to-day living conditions of modern Americans are very different from what they were in the 20th century. While doing research for an economics project. Charlie discovers that more households today, as compared to households 100 years ago, have electricity, air conditioning, and a car A. which of the following explains why modern Americans enjoy a higher standard of living the Americans 100 years ago? B. In which field do researches focus on investigating the phenomena describes
A. There has been economic growth in our society B. Economics
Suppose that the video game company, Ultravision, releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. - Can Ultravision sell all the units of the cell of obligation games it produces, or should it produce more units
Microeconomics
which statement describes the equity-efficiency trade-of
actions intended to make economic outcomes fairer may cause efficiency to decrease
Suppose the University Health Center receives flu vaccinations at the beginning of each flu season and offers these vaccines to students at the market price of $20.00 each. Of course, college students have varying budgets-- some have money to spare, while others have difficulty meeting basic needs. Additionally, some students have pre-exsisting conditions, such as asthma or diabetes, that place them at high risk for the flu -SUPPOSE THE SCHOOL SELLS ALL OF ITS VACCINES AT THE MARKET PRICE OF $20.00. WHAT DOES THE SCHOOL MAXIMIZE
efficiency
Which economic principle is illustrated by scenario During the summer, a bumper crop of oranges in Florida causes a surplus in the supply of oranges nationwide. As a result, prices fall to compensate for the surplus, and consumers enjoy the fruits of the farmers labor
equilibrium
SUPPOSE NOW THAT THE SCHOOL WISHES TO ENSURE THAT NO STUDENTS WITH DIABETES OR ASTHMA GO WITHOUT THE DRUG, OWING TO AN INABILITY TO PAY FOR IT. BECAUSE THE HEALTH CENTER DOES NOT KNOW THE BUDGET OF EACH OTHER, IT DECIDES TO OFFER VACCINES FREE TO STUDENTS WHO CAN PROVIDE A DOCTOR'S NOTE STATING THAT THEY HAVE A PRE-EXISTING CONDITION - the school is now seeking a greater degree of
fairness
Which economic principle is illustrated by scenario -The local river has so much pollution that three-eyed fish are forming. Regulations are therefore enacted to limit the amount of chemicals dumped into the river
government intervention
After a year of practice and rehersals the band still sounded awful. at their current rate, they expect it will be several years before they are good enough to land their first paid performance. none of them have enough money saved up to the last thing -they all know they are taking economics and ask your advice. what would you say to them.
have each member specialize in the role that they are best in to take advantage of benefits for specialization
AS PRICES OF COMPUTER GAMES FALL, CONSUMERS PURCHASE MORE GAMES, CETERIS PARIBUS -what does the term ceteris paribus mean in the context
holding all else equal (unchanged)
What scenario is an individual's behavior least likely to change
in an effort to make people eat healthier, the city of Bakersville tells its residents to eat wheat bread instead of white bread
AS PRICES OF COMPUTER GAMES FALL, CONSUMERS PURCHASE MORE GAMES, CETERIS PARIBUS - why, if at all, is the ceteris paribus condition important in economic analysis
it enables the analyst to isolate the role of one variable in producing a given outcome
Megan has a 1 hr gap in her course load for the fall semester. There are two courses available for her to take at the time: reading piano sheet music and beginning rock climbing. She does not have any experience with piano or rock climbing. In the end, she decides to enroll in the rock climbing course, despite her fear of heights WHICH ACTIVITY EXHIBITS A POTENTIAL TRADE-OFF WITH ENROLLING IN ROCK CLIMBING
learning to read piano sheet music
Suppose that the video game company, Ultravision, releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. - Have the millions of dollars that people have spent on video games worldwide affected the Gross Domestic Product in their respective countries
macroeconomics
Suppose that the video game company, Ultravision, releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. - How much less economic output is produced nationwide because workers call in sick to play either call of obligations or another video game
macroeconomics
Suppose that the video game company, Ultravision, releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. -Has the country's unemployement rate changed as Ultravision hired a huge team of workers to develop the game
macroeconomics
as a result of a severe recession, the total output or gross domestic product, of a nation falls by 4 percent
macroeconomics
increased consumer spending causes the national unemployment rate to fall
macroeconomics
increased consumer spending causes the rate of inflation to rise
macroeconomics
What is this example of; An educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. The company compares how much adding another worker will improve the product to the additional cost
marginal analysis
Which economic principle is illustrated by scenario -the owner of a snow cone trailer realizes that the demand for snow cones is low during the winter and closes shop until the temperature warms back up near summertime
market efficiency
Suppose that the video game company, Ultravision, releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. - How does ultra vision choose to market call of obligations
microeconomics
Suppose that the video game company, Ultravision, releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. - How much does Ultravision pay developers of the game
microeconomics
Suppose that the video game company, Ultravision, releases a new game called "Call of Obligation: Modern Combat 3." This can be analyzed using tools from both microeconomics and macroeconomics. Classify the items according to whether they are an application in microeconomics or macroeconomics. - How much will Ultravision charge for call of obligation
microeconomics
a tax on tires increases the price of tires paid by car owners
microeconomics
optimism about future car sales leads General Motors to hire more auto workers
microeconomics
robotic technology reduces the demand for auto workers
microeconomics
The richest 1% of Americans should pay more taxes than the rest of the 99%.
normative analysis
social welfare spending in Sweden occupies too large a portion of the national budget
normative analysis
eliminating political conflict
not a primary macroeconomic policy goal
to calculate how much urban residents are willing to pay to protect biodiversity
not a primary macroeconomic policy goal
to set the optimal prices for a pound of peaches
not a primary macroeconomic policy goal
What is this example of; On black friday, there are huge sales for electronics at many retailers. David must decide between buying a new Iphone or a new Apple watch
opportunity cost
a decrease in the supply of coconut will increase the price of German chocolate cake, a good that requires coconut shavings as a key ingredient
positive analysis
as the minimum wage increases, the price of all goods and services also tend to increase
positive analysis
Rising living standards
primary macroeconomic policy goal
low employment
primary macroeconomic policy goal
low inflation
primary macroeconomic policy goal
What is this example of; Ava finds that there is not enough time after work to have dinner, exercise and watch TV and she must make choices about how to use her limited time
resource scarcity
people have limited resources to satisfy unlimited wants
scarcity
Which economic principle is illustrated by scenario -At a high-end restaurant the restaurant owner has one chef at a meat station, one chef at a vegetable station, and one chef, who has an artistic eye, plate the food she is given. the result is increased service speed, enabling the kitchen to serve more customers in an evening
specialization
Suppose the University Health Center receives flu vaccinations at the beginning of each flu season and offers these vaccines to students at the market price of $20.00 each. Of course, college students have varying budgets-- some have money to spare, while others have difficulty meeting basic needs. Additionally, some students have pre-exsisting conditions, such as asthma or diabetes, that place them at high risk for the flu - WHO WILL SEE RECEIVE THE VACCINES IF THE UNIVERSITY HEALTH CENTER SELLS THEM AT THE $20.00 MARKET PRICE?
the students who pay $20.00 for them
everything you do requires giving up something (time, money)
trade-offs
