ECON 100: Principles Of Economics
ECON 100 – Principles of Economics Name: LaTonya Cooper
January 31, 2011
Due: February 14, 2011
Your assignment is to do Exercises 1-8 on p. 14 of the textbook. Type your name at the top right of this paper. Type your answers after each problem. Answer as concisely as you can while still getting your point across. Save this document, with your answers, on your computer. Rename it, if you like, to something that makes sense to you. Then upload it to Moodle in the slot for Homework 1.
1. Explain why each of the following is or is not an economic good. [12 points]
a. Steaks b. Houses c. Cars d. Garbage e. T-shirts
(D) Garbage is not a good source of an economic goods.
P …show more content…
S
D 0 Q
2.
It is well documented in scientific research that smoking is harmful to our health. Smokers have higher incidences of coronary disease, cancer, and other catastrophic illnesses. Knowing this, about 30 percent of young people begin smoking and about 25 percent of the U.S. population smokes. Are the people who choose to smoke irrational? What do you think of the argument that we should ban smoking in order to protect these people from themselves? [12 points]
The banning of smoking would be irrational however, it would still be a terrible things to do.
3. Use economics to explain why diamonds are more expensive than water, when water is necessary for survival and diamonds are not. [12 points]
3. I think that diamonds are scarcer more than, water.
4. Use economics to explain why people leave tips in the following two cases: (a) at a restaurant they visit often; (b) at a restaurant they visit only once. [12
points]
A) It would be the benefit of leaving a tip; (good service in the future of out-ways costs).
B) The benefits continue to exceed the costs.
5. Use economics to explain why people contribute to charities. [13 points]
I think that the benefits exceeds the costs of a being or becoming a better individual.
6. In presidential campaigns, candidates always seem to make more promises than they can fulfill: more and better health care; a better environment; only minor reductions in defense; better education; better roads, bridges, sewer systems, and water systems; and so on. What economic concept is ignored by the candidates? [13 points]
The 2 principles that are being ignored are an scarcity or opportunity costs.
7. Perhaps you’ve heard the saying “There is no such thing as a free lunch.” What does it mean? If someone invites you to a lunch and offers to pay for it, is it free to you? [13 points]
There is an opportunity cost to everything. The time spent at lunch has a cost because you could be doing something else.
8. During China’s Cultural Revolution in the late 1960s and early 1970s, many people with a high school or college education were forced to move to farms and work in the fields. Some were common laborers for eight or more years. What does this policy say about specialization? Would you predict that the policy would lead to an increase in output? [13 points]
The policy worked against comparative advantage. Educated people were not allowed to use their training. No! out- put would not increase. ( in fact, out-put fell so much that the policy was finally abandoned, even though communist party ideology favored it).
January 31, 2011
Due: February 14, 2011
Your assignment is to do Exercises 1-8 on p. 14 of the textbook. Type your name at the top right of this paper. Type your answers after each problem. Answer as concisely as you can while still getting your point across. Save this document, with your answers, on your computer. Rename it, if you like, to something that makes sense to you. Then upload it to Moodle in the slot for Homework 1.
1. Explain why each of the following is or is not an economic good. [12 points]
a. Steaks b. Houses c. Cars d. Garbage e. T-shirts
(D) Garbage is not a good source of an economic goods.
P …show more content…
S
D 0 Q
2.
It is well documented in scientific research that smoking is harmful to our health. Smokers have higher incidences of coronary disease, cancer, and other catastrophic illnesses. Knowing this, about 30 percent of young people begin smoking and about 25 percent of the U.S. population smokes. Are the people who choose to smoke irrational? What do you think of the argument that we should ban smoking in order to protect these people from themselves? [12 points]
The banning of smoking would be irrational however, it would still be a terrible things to do.
3. Use economics to explain why diamonds are more expensive than water, when water is necessary for survival and diamonds are not. [12 points]
3. I think that diamonds are scarcer more than, water.
4. Use economics to explain why people leave tips in the following two cases: (a) at a restaurant they visit often; (b) at a restaurant they visit only once. [12
points]
A) It would be the benefit of leaving a tip; (good service in the future of out-ways costs).
B) The benefits continue to exceed the costs.
5. Use economics to explain why people contribute to charities. [13 points]
I think that the benefits exceeds the costs of a being or becoming a better individual.
6. In presidential campaigns, candidates always seem to make more promises than they can fulfill: more and better health care; a better environment; only minor reductions in defense; better education; better roads, bridges, sewer systems, and water systems; and so on. What economic concept is ignored by the candidates? [13 points]
The 2 principles that are being ignored are an scarcity or opportunity costs.
7. Perhaps you’ve heard the saying “There is no such thing as a free lunch.” What does it mean? If someone invites you to a lunch and offers to pay for it, is it free to you? [13 points]
There is an opportunity cost to everything. The time spent at lunch has a cost because you could be doing something else.
8. During China’s Cultural Revolution in the late 1960s and early 1970s, many people with a high school or college education were forced to move to farms and work in the fields. Some were common laborers for eight or more years. What does this policy say about specialization? Would you predict that the policy would lead to an increase in output? [13 points]
The policy worked against comparative advantage. Educated people were not allowed to use their training. No! out- put would not increase. ( in fact, out-put fell so much that the policy was finally abandoned, even though communist party ideology favored it).