ECONOMICS
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. 3/3Define opportunity cost, and explain its importance in economics. (3 marks)
-The opportunity cost of something is what you must give up of one thing, in order to get it. Opportunity cost is a key concept of economics because it is described as expressing the basic relationship between scarcity and choice. Opportunity cost plays a crucial part in ensuring that scarce resources are used efficiently.
b. 4/4The 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)
-In order to determine the opportunity cost of the 2010 Olympic Games, we must consider what they could have done with the money if they had invested it elsewhere, so let’s say they would have used this money in order to built a new arena for the Vancouver Canucks well the opportunity cost of the Olympics is the new arena. We should also consider the Event Benefits minus the Event Costs.
2. Use the graph below to answer the questions that follow. (2 marks each)
6/6
a. What type of curves are these? Do these curves show a positive or negative correlation between price and quantity?
The curves in the above graph are demand curve. They show a negative correlation between price and quantity because demand increases as the price decreases.
b. Calculate the slope of the curve between points A and C. (Please show your work.)
Rise over run;
Slope = y/x
Y- $24.00 drops to $16.00 = -$8.00
X- 20 to 40 = +20 slope: -8/+20 = -.40
c. Explain the difference between a “change in quantity demanded” and a “change in demand.”
A change 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. 3/3Define opportunity cost, and explain its importance in economics. (3 marks)
-The opportunity cost of something is what you must give up of one thing, in order to get it. Opportunity cost is a key concept of economics because it is described as expressing the basic relationship between scarcity and choice. Opportunity cost plays a crucial part in ensuring that scarce resources are used efficiently.
b. 4/4The 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)
-In order to determine the opportunity cost of the 2010 Olympic Games, we must consider what they could have done with the money if they had invested it elsewhere, so let’s say they would have used this money in order to built a new arena for the Vancouver Canucks well the opportunity cost of the Olympics is the new arena. We should also consider the Event Benefits minus the Event Costs.
2. Use the graph below to answer the questions that follow. (2 marks each)
6/6
a. What type of curves are these? Do these curves show a positive or negative correlation between price and quantity?
The curves in the above graph are demand curve. They show a negative correlation between price and quantity because demand increases as the price decreases.
b. Calculate the slope of the curve between points A and C. (Please show your work.)
Rise over run;
Slope = y/x
Y- $24.00 drops to $16.00 = -$8.00
X- 20 to 40 = +20 slope: -8/+20 = -.40
c. Explain the difference between a “change in quantity demanded” and a “change in demand.”
A change in