Preview

Economics Assessment

Satisfactory Essays
Open Document
Open Document
5791 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Economics Assessment
Economics Assessments

1.1.1 Scarcity, Choice, Opportunity Costs, and Comparative Advantage – Using examples, explain how scarcity, choice, opportunity costs affect decisions that households, businesses, and governments make in the market place and explain how comparative advantage creates gains from trade.

1. Willie loves ice cream. He has found a store that sells ice cream cones at a bargain price of $0.50 each. He has just eaten two of these cones but has not decided to buy a third one. Which of the following statements best explains the economic principle at work in Willie’s decision not to buy a third cone?

A. Consumers weigh the additional costs and benefits before choosing to buy more goods. B. Consumers spend freely to increase business activity so that the price of goods will drop. C. Consumers save more by buying larger quantities. D. Consumers buy more at lower prices.

Answer: A

2. Juan, Darrell, and Anita all want to go out with their friends on Saturday night but first they must clean their house. Use the idea of comparative advantage to decide who should do what chore in order to get the household chores done the fastest.

|Chore |Juan |Darrell |Anita |
|Vacuum/Dust |35 minutes |50 minutes |25 minutes |
|Do the laundry |60 minutes |30 minutes |50 minutes |
|Clean the Kitchen/Bath |20 minutes |25 minutes |35 minutes |

A. Darrell should vacuum/dust; Anita should clean the kitchen/bath; Juan should do the laundry. B. Darrell should do the laundry; Anita should clean the kitchen/bath; Juan should vacuum/dust. C. Darrell should

You May Also Find These Documents Helpful

  • Satisfactory Essays

    According to the sticky wage theory, which of the following is consistent with an unexpected fall in the price level?…

    • 982 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Economics 101

    • 1678 Words
    • 4 Pages

    1. In the long run an increase in the money supply results in E a proportional increase in price…

    • 1678 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Economics Quiz Paper

    • 2062 Words
    • 9 Pages

    3. Which of the following signals to the owners of scarce resources are the best use of those resources?…

    • 2062 Words
    • 9 Pages
    Satisfactory Essays
  • Better Essays

    Economics Quiz 2000

    • 1442 Words
    • 6 Pages

    A) 0; 0 B) 0; 300 C) 0; 1,000 D) 500; 800 E) 1,000; 2,000…

    • 1442 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Managerial Economics Quiz

    • 4814 Words
    • 20 Pages

    23. According to the theory of comparative advantage, a nation can gain from trade if it is not equally less…

    • 4814 Words
    • 20 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Economics Quiz

    • 759 Words
    • 4 Pages

    increases the amount of consumer surplus that is lost to the buyers and not gained by…

    • 759 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Economics Quiz

    • 899 Words
    • 4 Pages

    Which of the following is not one of the four primary public policy objectives furthered by laws and regulations applicable to U.S. business?…

    • 899 Words
    • 4 Pages
    Satisfactory Essays
  • Best Essays

    economics 365

    • 2287 Words
    • 10 Pages

    Johnson, J. H. (1995). An empirical analysis of the integration responsiveness framework: U.S. Construction equipment industry firms in global competition. Journal of International Business Studies, 26(3), 621-635.…

    • 2287 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Economics Quiz Paper

    • 3073 Words
    • 13 Pages

    This is illustrated above as p0 and q0. A price ceiling below the initial equilibrium price will cause a shortage. That is quantity demanded (qdc) at the price ceiling (pc) exceeds quantity supplied (qsc). To avoid upsetting consumers, the company may provide a lower quality cable TV subscription. This cheaper package would increase the supply of cable TV. The supply curve will rightward. This action will move towards eliminating the cable TV shortage as the quantity supplied of the modified package…

    • 3073 Words
    • 13 Pages
    Good Essays
  • Good Essays

    Econ 102 Economics

    • 1323 Words
    • 5 Pages

    In May 4, 1886 the Haymarket riot in the police clashed violent whit militant anarchists and labor movement protesters in Chicago. The strong public and state reaction against the Haymarket protesters has been palled the first red scare in U.S history.…

    • 1323 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Economics 213

    • 618 Words
    • 2 Pages

    Use your knowledge of the factors that cause shifts in demand, and in a multi-paragraph essay, provide at least three reasons why ice cream sales fluctuate in this manner. (Apply only the factors you think are applicable to explaining this scenario.) Now assume that a month later, the school allows a competing student the right to sell ice creams on school property. (The number of students on campus remains largely unchanged.) What do you think will happen to the price of ice cream at your campus? Explain in detail.…

    • 618 Words
    • 2 Pages
    Good Essays
  • Best Essays

    Economics & the Rest

    • 1458 Words
    • 6 Pages

    Since the market orientated economic reforms were introduced in 1978 (Khan, Hu (1997, P103) China’s economy has seen a 10% increase in Gross Domestic Product (GDP) Per year (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4) which is extremely impressive considering all other developing countries have experienced a 4% increase annually (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4). Prior to the global financial crisis in 2005, the economic growth had averaged 9.5% over the past 2 decades (Economic Surveys: China 2005, (September 2005, P2) During the global financial crisis in 2008-2009, exports shifted from 20 percent annual growth to an annualized contraction of more than 25 percent in early 2009 (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4) However, prompt and vigorous policy actions, as well as swift adjustment in the labour market, helped growth pick up by the second quarter of 2009, putting China in the lead of the global recovery (Economic Survey of China 2010: Achievements, prospects and further challenges, ( February 2, 2010) The success of the Chinese Economy recently, especially during the economic , crisis has been speculated to be the cause of the popular government owned companies. Registered private businesses grew at a rate of 30% annually from 2000 to 2009 affecting different industry sectors from oil to banking (Entrepreneurship in China: Let a million flowers boom (March 10, 2011) and has been the…

    • 1458 Words
    • 6 Pages
    Best Essays
  • Satisfactory Essays

    1. Explain how the concepts of scarcity, choice, and opportunity cost relate to your dilemma.…

    • 336 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Housekeeping Questions

    • 275 Words
    • 2 Pages

    Identify FOUR (4) manual and TWO (02) electrical cleaning equipment commonly found in the housekeeping department and explain the uses of each of them.…

    • 275 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Endesa Take Over Bid

    • 260 Words
    • 2 Pages

    hours to do whatever you want to do. In this period you have also two…

    • 260 Words
    • 2 Pages
    Satisfactory Essays