Econ 247 Assign1 A Revised
Economics 247 Assignment 1 Version A
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.
1. a. Define opportunity cost, and explain its importance in economics. (3 marks)
Opportunity cost is whatever must be given up to obtain something. It is fundamental to economic reasoning because it shows that people face trade-offs and the opportunity cost helps us decide what decisions to make.
b. The province of British Columbia hosted the 2010 Olympic Games and invested millions of dollars in improvements to facilities for these events. How would one determine the opportunity cost of the 2010 Olympic Games? (4 marks) The opportunity costs could be determined by looking at the amount of money invested versus the lasting economic value that it could bring to the province such as tourism, consumerism and notoriety. They must look at what they could have possibly done with the money spent on the Olympics and determine if it would have been more beneficial to invest it elsewhere.
2. Use the graph below to answer the questions that follow. (2 marks each)
a. What type of curves are these? Do these curves show a positive or negative correlation between price and quantity?
These curves are demand curves. They show a negative correlation between price and quantity because as the demand increases the price decreases, thus the demand curve slopes downwards.
b. Calculate the slope of the curve between points A and C. (Please show your work.)
24.00 drops to 16.00 = -8.00
Qty increases from 20 to 40 = +20
-8/+20 = -0.4
c. Explain the difference between a “change in quantity demanded” and a “change in demand.”
A change in quantity demanded means there is a movement along a fixed demand curve that occurs when the price changes.
A change in demand means that there is a shift in
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.
1. a. Define opportunity cost, and explain its importance in economics. (3 marks)
Opportunity cost is whatever must be given up to obtain something. It is fundamental to economic reasoning because it shows that people face trade-offs and the opportunity cost helps us decide what decisions to make.
b. The province of British Columbia hosted the 2010 Olympic Games and invested millions of dollars in improvements to facilities for these events. How would one determine the opportunity cost of the 2010 Olympic Games? (4 marks) The opportunity costs could be determined by looking at the amount of money invested versus the lasting economic value that it could bring to the province such as tourism, consumerism and notoriety. They must look at what they could have possibly done with the money spent on the Olympics and determine if it would have been more beneficial to invest it elsewhere.
2. Use the graph below to answer the questions that follow. (2 marks each)
a. What type of curves are these? Do these curves show a positive or negative correlation between price and quantity?
These curves are demand curves. They show a negative correlation between price and quantity because as the demand increases the price decreases, thus the demand curve slopes downwards.
b. Calculate the slope of the curve between points A and C. (Please show your work.)
24.00 drops to 16.00 = -8.00
Qty increases from 20 to 40 = +20
-8/+20 = -0.4
c. Explain the difference between a “change in quantity demanded” and a “change in demand.”
A change in quantity demanded means there is a movement along a fixed demand curve that occurs when the price changes.
A change in demand means that there is a shift in