Economics Assessments 1.1.1 Scarcity, Choice, Opportunity Costs, and Comparative Advantage – Using examples, explain how scarcity, choice, opportunity costs affect decisions that households, businesses, and governments make in the market place and explain how comparative advantage creates gains from trade. 1. Willie loves ice cream. He has found a store that sells ice cream cones at a bargain price of $0.50 each. He has just eaten two of these cones but has not decided to buy a third one. Which of the following statements best explains the economic principle at work in Willie’s decision not to buy a third cone? A. Consumers weigh the additional costs and benefits before choosing to buy more goods. B. Consumers …show more content…
Tasha applies for a job as an engineer. D. The city of Upland builds a new nursing home. Answer: B 3. Recently, the hourly wage that parents are willing to pay babysitters increased dramatically. Higher pay will most likely cause which of the following changes in how babysitters divide their out-of-school time between babysitting and other activities? Time Spent Time Spent Babysitting on Other Activities A. No change Decrease B. Increase Decrease C. Decrease No change D. Increase Increase Answer: B 1.2.1 Business structures-Compare and contrast the functions and constraints facing economic institutions including small and large businesses, labor unions, banks, and households. 1. Which is the first step a labor union takes when negotiating contracts with employers? A. Engage in collective bargaining B. Start a plant lockout C. Demand binding arbitration D. Call for a strike Answer: A 2. If one of a firm’s fixed costs rises, A. its profit-maximizing output level will increase. B. its profit-maximizing output level will decrease. C. its profit-maximizing output level will not change. D. it would likely increase its price. Answer: C 3. What is one way to lower the cost of production? A. Hire additional workers B. Create new technologies C. Use more resources D. Cut more resources
Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta:
a. Given the change in the value of the dollar between 2008 and 2009, as indicated in the table above, describe the effects this will have on United States tourism in each of these countries.
In the Private Sector, there are many choices to be made by Business managers regarding which “projects” to borrow for and which “projects” to invest in. These choices often contain a great deal of ______________________ as well as the potential for benefits (profits).
Having the appropriate structure is vital for an organisation or business to meet its aims and objectives. A business may be structured by:
C) There are opportunity costs involved when scarce resources are used up for free lunches
Basic economic models assume that all parties have “perfect information.” How does “informational asymmetry” undermine our market economy?
A corporate business enterprise is established under a specific legal framework where laws governing the operations and functioning of the enterprise are outlined. The activities of the enterprise are monitored and therefore such an enterprise is recognized by law. This is important due to the fact that legal suits can be filed by the enterprise within the provisions of the law.
1. SteamScot face a ‘basic economic problem’ what is this ‘problem’ and what is the opportunity cost of the replace and repair programme?
This assignment has a maximum total of 100 marks and is worth 10% of your total grade for this course. You should complete it after completing your course work for Units 1 through 5. Answer each question clearly and concisely.
5. Incentives matter. Explain why businesses and entrepreneurs are more likely to voluntarily undertake the projects that consumers value highly relative to price and less likely to undertake the government-sponsored projects in which the per-unit cost of production is above the price consumers willingly
* In the first paragraph, discuss the relevant economic theory of your topic (your textbook is a good source for this paragraph).
. Through the process of reading, I learned many things about the economy. First of all, I learned that it is a much more difficult decision to come to in regards of how much government involvement in the nation’s economy is enough, how much is too little, and how much is not enough. I also learned that trying to keep the economy stable and productive is a constant and difficult struggle, and that it is often difficult to even know what needs to or can be done in order to stabilize it. While I find economics to be somewhat boring (I am a music major and largely emotionally driven, which means that my entertainment is usually emotionally involving somehow), I actually enjoyed how Wheelan explained economics in this book. While I would not read it for fun, reading this book as an assignment was not painful.