Econ Ans

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ECON2103 – Problem Set (1) Multiple Choice Questions: 1. Understanding opportunity cost You work as an assistant coach on the university basketball team and earn $12 per hour. One day, you decide to skip the hour-long practice and go to the local carnival instead, which has an admission fee of $7. The opportunity cost of skipping practice and going to the carnival, valued in dollars is _________. 1) 2) 3) 4) $20 $12 $19 $7 2. Determining opportunity cost Winona is deciding whether to buy a suit that she wants, as well as where to buy it. Three shops carry the same suit. She can go to her local department store, located 15 minutes away from where she works, and pay $120 for the suit. She can travel to a shop across town, located 30…show more content…
How people Interact Consider the following scenario: Because a type of fish is on the verge of extinction, the government Imposes rules that prohibit fishing in the publicly owned spawning grounds. At first, owners of fishing boats complain about this restriction on where they can fish, but soon they notice that the number of adult fish swimming outside the protected area is much higher than it was before. With the restriction, each fishing boat ends up catching more fish than it did before the restriction was in place. Which of the following principles of economic interaction best describes this scenario? 1) 2) 3) 4) There is a tradeoff between equity and efficiency. Markets usually lead to efficiency. Markets move toward equilibrium. When markets do not achieve efficiency, government intervention can improve overall welfare. 7. Determinants of an economy's standard of living What can a government do to raise the living standard of an economy in the long term? Check all that apply. 3 1) Adopt measures to attract foreign investments in the economy. 2) Increase the period of free education for all its residents from nine years to 12 years. 3) Offer generous unemployment benefits for workers who are laid off. Questions from Textbook QUESTIONS FOR REVIEW (P.18): Q3, Q4, and Q5 PROBLEMS AND APPLICATIONS (P.19): Q3, Q5, Q11

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