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FIU ECO2023 Assignment HW01 chapter01 spring 14




Question;1.;award:0 out of;7.69 points;State whether the following are primarily microeconomic or macroeconomic;policy issues;a. Should U.S. interest rates be lowered to decrease the amount of;unemployment?.;b. Will the fact that more and more doctors are selling their practices to;managed care networks increase the efficiency of medical providers?;c. Should the current federal income tax be lowered to reduce;unemployment?;d. Should the federal minimum wage be raised?;e. Should Sprint and Verizon both be allowed to build local phone networks?;f. Should commercial banks be required to provide loans in all areas of the;territory from which they accept deposits?;2.;award:0 out of;7.69 points;a. Which of the;following are microeconomic problems?Instructions: You may select;more than one answer. Click the box with a check mark for correct answers and;click to empty the box for the wrong answers.;Slow;growth.;How;wages are determined in labor markets.;The;pricing policies of firms.;Unemployment.;Inflation.;b. Which of the following are macroeconomic problems?Instructions: You may select;more than one answer. Click the box with a check mark for correct answers and;click to empty the box for the wrong answers.;Externalities;that have negative effects on society.;Inflation.;Unemployment.;How;wages are determined in labor markets.;Monopoly;behavior that raises consumer prices.;3.;award:0 out of;7.69 points;Calculate, using the best estimates you can;a. Your opportunity cost of attending college.;b. Your opportunity cost of taking this course.;c. Your opportunity cost of attending yesterday's lecture in this course.;4.;award:0 out of;7.69 points;You rent a car for $29.55. The first 150 miles are free, but each mile;thereafter costs 15 cents. You plan to drive it 165 miles. What is the marginal;cost of driving the car?;5.;award:0 out of;7.69 points;Economists Henry Saffer of Kean University, Frank J. Chaloupka of the;University of Illinois at Chicago, and Dhaval Dave of Bentley College estimated;that the government must spend $4,170 on drug control to deter one person from;using drugs and the cost that one drug user imposes on society is $897. Based;on this information alone, should the government spend the money on drug;control?;6.;award:0 out of;7.69 points;What is the opportunity cost of buying a $22,000 car?;7.;award:0 out of;7.69 points;Suppose you currently earn $30,000 a year. You are considering a;job that will increase your lifetime earnings by $300,000 but that requires an;MBA. The job will mean also attending business school for two years at an;annual cost of $25,000. You already have a bachelor?s degree, for which you;spent $80,000 in tuition and books. Which of the above information is relevant;to your decision whether to take the job?;8.;award:0 out of;7.69 points;Suppose your college has been given $5 million. You have been asked to;decide how to spend it to improve your college. Explain how you would use the;economic decision rule and the concept of opportunity costs to decide how to;spend it.;7.69 points;What is an economic model? What besides a model do economists need to;make policy recommendations?;10.;award:0 out of;7.69 points;Does economic theory prove that the free market system is best? Why?.;11.;award:0 out of;7.69 points;Distinguish between theorems and precepts. Is it possible for two;economists to agree about theorems but disagree about precepts? Why or why not?;12.;award:0 out of;7.69 points;What is the difference between normative and positive statements?;13.;award:0 out of;7.72 points;State whether the following statements belong in positive economics;normative economics, or the art of economics.;a. In a market, when quantity supplied exceeds quantity demanded, price tends;to fall.;b. When determining tax rates, the government should take into account the;income needs of individuals.;c. When deciding which rationing mechanism is best (lottery, price;first-come/first-served), one must take into account the goals of society.;Could be either normative or art of economics;d. California currently rations water to farmers at subsidized prices. Once;California allows the trading of water rights, it will allow economic forces to;be a market force.


Paper#57226 | Written in 18-Jul-2015

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