ECN 211 Week 2 Short Answer
1. Briefly explain the resources used as inputs to produce output, and provide an example of each resource. (5 points)
Do we consider how the finished goods process? Does they need any resources? In economies, resources are land, labor and capital which used as inputs. Without these resource, finished product cannot be done and another way to say it, the output can’t be produced without inputs. Like cake cannot be made without flower, eggs and oven.
Watch the following news video above this box.
This video clip examines supply and demand of oil. Please discuss the impacts that oil prices have on the economy . What happens when to oil prices when the economy slows versus when it is growing? (5 points)
In this technology world nowadays, oil is becoming more necessarily. According to the videos, 3.54 gal of oil will be consumed every day. The more people demand it the prices of oil will increases which will lead the economy is growing. Of courses, the economy is going down if the price of the oil is going down.
3. Consider products that you use in your everyday life. Provide an explanation and at least one example of a normal good, an inferior good, substitutes, and complements. (5 points)
Normal good: demand increases when the income increases. Ex: I bought Nike shoes instead of Walmart shoes when I got a pay raise.
Inferior good: demand decreases when income increases. Ex: I stop drink Starbuck coffee and start brewing my own coffee
Substitutes: something can be used instead of particular good or service. Ex: I choose to stay home to drink with friends instead of going to the bar
Complements: products are used to combine with another. Ex: tacos and salsa need to eat together.
4. Explain why an increase in quantity supplied is not the same as an increase in supply. Which of these would be associated with a rightward shift in the supply curve? What non-price determinants could lead to a shift in the supply curve? Which would be associated with a movement up
Do we consider how the finished goods process? Does they need any resources? In economies, resources are land, labor and capital which used as inputs. Without these resource, finished product cannot be done and another way to say it, the output can’t be produced without inputs. Like cake cannot be made without flower, eggs and oven.
Watch the following news video above this box.
This video clip examines supply and demand of oil. Please discuss the impacts that oil prices have on the economy . What happens when to oil prices when the economy slows versus when it is growing? (5 points)
In this technology world nowadays, oil is becoming more necessarily. According to the videos, 3.54 gal of oil will be consumed every day. The more people demand it the prices of oil will increases which will lead the economy is growing. Of courses, the economy is going down if the price of the oil is going down.
3. Consider products that you use in your everyday life. Provide an explanation and at least one example of a normal good, an inferior good, substitutes, and complements. (5 points)
Normal good: demand increases when the income increases. Ex: I bought Nike shoes instead of Walmart shoes when I got a pay raise.
Inferior good: demand decreases when income increases. Ex: I stop drink Starbuck coffee and start brewing my own coffee
Substitutes: something can be used instead of particular good or service. Ex: I choose to stay home to drink with friends instead of going to the bar
Complements: products are used to combine with another. Ex: tacos and salsa need to eat together.
4. Explain why an increase in quantity supplied is not the same as an increase in supply. Which of these would be associated with a rightward shift in the supply curve? What non-price determinants could lead to a shift in the supply curve? Which would be associated with a movement up