Principles of Economics Homework Assignment

Principles of Economics Homework Assignment

Question 1

2.69 / 2.69 pts

Which of the following illustrates scarcity?

I got a new pair of running shoes.

Angie loves riding her bike.

Ben will travel to New York City for Spring Break.

Susan wants to buy an IPhone 7 that costs over $700, but has only $200 to spend.

Question 2

2.69 / 2.69 pts

Due to limits on our time, money, and effort, we are best off when we allocate those things

according to what society as a whole would want.

with the objective of maximizing profit.

by constantly assessing the opportunity costs of our choices.

none of the above.

Question 3

2.69 / 2.69 pts

Economic capital is productive, so it does not include ________?

buildings and equipment

tools

money

vehicles

Question 4

2.69 / 2.69 pts

Identify the macroeconomic issue among the following statements:

The electric bill is higher this month.

Our family business costs will rise due to higher electricity rates.

The average cost of producing electricity nationally is rising.

None of the above

Question 5

2.69 / 2.69 pts

The opportunity cost of purchasing a textbook is best defined as the _______.

value of all the alternatives given up to purchase a textbook.  

value of the highest-valued alternative given up to purchase a textbook.

money spent to purchase a textbook.

the time spent getting a textbook.
Principles of Economics Homework Assignment

Question 6

2.71 / 2.71 pts
I had a full time job this summer where I earned $10 per hour. It costs me about $4 in gas money for every round trip to and from campus, which lasts for one hour. My class meets once a week and lasts 3 hours. My opportunity cost (including both direct and indirect costs) of attending class in any given week is:

$0

$30

$34

$40

$44

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.

Question 7

2.69 / 2.69 pts

Marginal cost is necessary to consider in a rational decision, and should be compared to:

opportunity cost.

total benefit.

marginal benefit.

none of the above
Principles of Economics Homework Assignment

Question 8

2.69 / 2.69 pts

If a hurricane hits Central Florida, the marginal benefit from visiting Disney World ______, which ______ the incentive to visit Disney World.

rises; weakens

either falls or rises; either weakens or strengthens

falls; weakens

falls; strengthens 

rises; strengthens

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

2.69 / 2.69 pts
An economic model is a description of some features of the economic world that includes _____ features assumed necessary to explain the _____facts.

only those; unobserved

only those; observed

all the; unobserved

all the; observed
Principles of Economics Homework Assignment

Question 10

2.69 / 2.69 pts

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.

key aspects; false; simplify

all details; false; simplify

key aspects; true; augment

all details; true; augment

Question 11

2.69 / 2.69 pts

An example of ceteris paribus is best described by the statement ______.

To study how cinema ticket prices influence revenue, assume that the movie wins the best picture award.

To study the effect of a wage rise on the number of employees, keep only the population constant.

To find the effect of the increase in capital, increase the number of workers.

To study the effect of a rise in the oil price, keep all other prices constant.
Principles of Economics Homework Assignment

Question 12

2.7 / 2.7 pts

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

positive; falls

negative; rises

positive; remains constant

negative; remains constant

Question 13

2.69 / 2.69 pts

The table below gives information about the relationship between two variables x and y. The the slope of the relationshipequals ______.

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).

Quiz Score: 35 out of 35