I need help for my ECON homework
yu.tewWeek one assignment answers
1. Land/natural resources, labor, capital, entrepreneurial ability
2. A. Fewer, more; B. Unemployed, underemployed; C. More, more; D. Economic growth
3. B
4. C
5. A (a budget line actually shows various combinations of quantities rather than prices. In order to figure out the quantities, you need to divide the income by the price. In this case, on the vertical axis the consumer can purchase a maximum amount of 5 units of B ($100/20). On the horizontal axis, the consumer can purchase a maximum of 10 units of A ($100/10). Use these quantities (5 on the vertical and 10 on the horizontal) to find your slope.)
6. B
7. D
8. C
9. D
10. A. N; B. P; C. N; D.P; E.N; F.N
11. Full employment, fixed resources, fixed technology, a dual-good state
12. The law of increasing opportunity cost states that as the production of a particular good increases, the opportunity cost (the amount of other products that must be forgone or sacrificed to produce a unit of product) of producing an additional unit rises. Opportunity costs rise because economic resources are not completely adaptable to alternative uses, and may be much better at producing one good than producing the other.
13. D
14. D
15. C (First, you need to find the slope. Choose any two sets of coordinates- for example (3,2) and (9,4). The equation for slope is (y2-y1)/(x2-x1), so (4-2)/(9-3), or (2/6), or (1/3). You next need to find the vertical intercept, where the horizontal coordinate is 0. Just from looking at the data set, the intercept is 1. Plug that into the equation y=mx+b (where m is the slope and b is the vertical intercept, y is the depedent variable and x is the independent variable). In this case, B=(1/3)A+1)
16. The tastes or preferences of consumers; the number of consumers in the market; the money income of consumers; the price of related goods; consumer expectations with respect to future prices and income
17. The technology of production; resource prices; taxes and subsidies; prices of other goods; producer expectations of price; the number of sellers in the market
18. A
19. B
20. C
21. D
22. D
23. C
24. D
25. D
26. 30, 4; the information that O’Rourke has an income of $100 is superfluous. To determine the quantities demanded, look at the given price information. For example, the price of A is $0.80. The quantity demanded in column 2 that corresponds to this price is 30. The same applies for B- at the given price of $5, the quantity is 4.
27. 20,7; follow the same principles as problem 26, but use columns 3 and 6 (instead of 2 and 5).
28. Normal (superior)
29. Inferior (for an inferior good, when a consumer’s income increases, they will buy less of a good)
30. $3, $4
Completed chart (old equilibrium price is in italics on left half, new on right half)
Demand and supply schedules |
New demand and supply schedules |
||||
1 |
2 |
3 |
4 |
5 |
6 |
Price |
Quantity demanded |
Quantity supplied |
Price |
Quantity demanded |
Quantity supplied |
$5.00 |
10 |
50 |
$5.00 |
20 |
40 |
4.00 |
20 |
40 |
4.00 |
30 |
30 |
3.00 |
30 |
30 |
3.00 |
40 |
20 |
2.00 |
40 |
20 |
2.00 |
50 |
10 |
1.00 |
50 |
10 |
1.00 |
60 |
0 |
31. 30, 30
32. Decrease demand, decrease price
33. Decrease supply, increase price
34. Increase supply, decrease price
35. Increase demand, increase price
36. Increase demand, increase price
37. Decrease supply, increase price
38. An increase in demand shifts the entire demand curve resulting in all new price/quantity combinations. An increase in quantity demanded moves along the original demand curve to a new price/quantity combination.
39. A price ceiling sets the maximum legal price a seller may charge for a product or service. This results in shortages because the consumer demands more of the good than suppliers are willing to produce/supply at the artificially low (not market determined) price.
40. A price floor is a minimum price fixed by the government, and is usually put in place when the government feels that the market system has not provided a sufficient income for certain groups of resource suppliers or producers. Minimum wages are a prime example of this. At any price above the equilibrium, the quantity supplied is greater than the quantity demanded. With minimum wages, this means that more people are willing to work for the artificially high wage than firms are willing to hire.