Principles of Economics Homework Assignment
Principles of Economics Homework Assignment
Question 1
Which of the following illustrates scarcity?
Susan wants to buy an IPhone 7 that costs over $700, but has only $200 to spend.
Question 2
Due to limits on our time, money, and effort, we are best off when we allocate those things
Question 3
Economic capital is productive, so it does not include ________?
Question 4
Identify the macroeconomic issue among the following statements:
Question 5
The opportunity cost of purchasing a textbook is best defined as the _______.
Question 6
Question 7
Marginal cost is necessary to consider in a rational decision, and should be compared to:
Question 8
If a hurricane hits Central Florida, the marginal benefit from visiting Disney World ______, which ______ the incentive to visit Disney World.
rises; weakens
An incentive is a reward or a penalty – a “carrot” or a “stick” – that encourages or discourages an action. If a hurricane hits Central Florida, the marginal benefit from visiting Disney World visiting Disney World falls, which weakens the incentive to visit Disney World.
Question 9
Question 10
Economic models focus on _________ of the complex reality, by making assumptions, which are ________ statements that _________ the complex reality, and are not relevant for the main research questions the model is trying to address.
Question 11
An example of ceteris paribus is best described by the statement ______.
Question 12
The table below gives information about the relationship between two variables x and y. The relationship between x and y is ______ and the slope of the relationship ______ as x increases.
X Y
2 180
4 184
6 188
8 192
10 196
Question 13
The table below gives information about the relationship between two variables x and y. The the slope of the relationship equals ______.
X Y
2 180
4 184
6 188
8 192
10 196
Slope = (Change in Y) / (Change in X) = (184-180) / (4-2) = 4/2 = 2. You could have used any two other X points and their corresponding Y points to find that the ratio is the same (= 2).
Direct costs would be costs that require an outlay of money, such as gas costs = $4 per trip/week.
Indirect costs are “hidden” costs, which represent an opportunity someone gives up to obtain something else (known as “opportunity cost” by economists). In this case by attending the class for 3 hours and driving to and from campus for one hour, one gives up 4 hrs, which he/she could have worked and earned $10 per hour, thus a total of $40.
The sum of the two costs above would yield what you are asked to find for this question.