ch 1 hw econ

You work as an assistant coach on the university basketball team and earn $14 per hour. One day, you decide to skip the hour-long practice and, instead, go to the local carnival, which has an admission fee of $9. The total cost (valued in dollars) of skipping practice and going to the carnival (including the opportunity cost of time) is__________.

Kenji is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Kenji has only 20 hours per week that he can devote to training for his race. Which basic principle of individual choice does this sentence best illustrate? A. All costs are opportunity costs. B. People usually exploit opportunities to make themselves better off. C. Resources are scarce. D. Many decisions are made on the margin.

Suppose that in the hypothetical country of Caffistan, coffee mugs are distributed to whoever is willing to pay the most. This distribution rule gives the residents of Caffistan an incentive to spend time A. Earning Money B. Lobbying Government Officals C. Maintaining their place on the line

People in the U.S. state of Iowa eat both corn and potatoes. It is technically possible for farmers to grow both corn and potatoes in Iowa, yet almost no farmers grow potatoes. Instead, every year, Iowa exports corn and imports potatoes from the U.S. state of Idaho, where farmers specialize in potatoes. Which of the following principles of economic interaction best describes this scenario? -When markets do not achieve efficiency, government intervention can improve overall welfare. -Trade can make everyone better off. -There is a tradeoff between equity and efficiency. -All costs are opportunity costs.

Suppose that, in an attempt to combat severe inflation, the government decides to decrease the amount of money in circulation in the economy. This monetary policy __________ the economy's demand for goods and services, leading to__________ product prices. In the short run, the change in prices induces firms to produce __________ goods and services. This, in turn, leads to a__________ level of unemployment. In other words, the economy faces a trade-off between inflation and unemployment: Lower inflation leads to_________ unemployment

Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. 1. The optimal interest rate for the Federal Reserve to target 2. The effects of government tax policy on long-term economic growth 3. The effect of a cigarette tax on the quantity of cigarettes sold

Categorize each of them as positive or normative. 1. Killing people is bad. 2. By executing convicted murderers, the government may deter potential murderers and, therefore, decrease the murder rate. 3. It is immoral for the government to kill people. 4. The government should not execute anyone, even murderers.

Despite their differences, with which propositions are two economists chosen at random most likely to agree?

Suppose Germany produces only cars and trucks. The resources that are used in the production of these two goods are not specialized—that is, the same set of resources is equally useful in producing both trucks and cars. The shape of Germany's production possibilities frontier (PPF) should reflect the fact that as Germany produces more trucks and fewer cars, the opportunity cost of producing each additional truck ________ . How would the graph look?

Suppose that Italy and Switzerland both produce jeans and olives. Italy's opportunity cost of producing a crate of olives is 5 pairs of jeans while Switzerland's opportunity cost of producing a crate of olives is 10 pairs of jeans. By comparing the opportunity cost of producing olives in the two countries, you can tell that_________ has a comparative advantage in the production of olives and __________ has a comparative advantage in the production of jeans.

If a shortage exists in the car market, then the current price must be_______ than the equilibrium price. For the market to reach equilibrium, you would expect_______ .

For a shortage, pressure is moved ________

Identify whether each of the following events in this scenario occurs in the resource market (the market for factors of production) or the product market (the market for goods and services). 1. Becky earns $600 per week working for the Medical Clinic. 2. Alex spends $175 to purchase medical services from the Medical Clinic. 3.Alex earns $475 per week working for Little Havana.