Problem 7
A Web site reviewing new CDs offers you a free subscription. All you have to do is complete a brief online application. What is the opportunity cost of this "free" offer? Why do you think the offer is being made?
Problem 7
Applying Economic Concepts Explain why, in an economy that produces only fish and computers and is working at efficiency, the 500 th computer made will cost more in terms of fish than the 450th computer made.
Problem 8
Applying Economic Concepts In which category does each item below belong- microeconomics or macroeconomics? Why? a. Studying statistics to see how well the economy is doing at creating jobs or increasing exports; b. Studying statistics on gasoline sales and hotel bookings to explore the impact of higher gas prices on vacation plans.
Problem 8
Applying Economic Concepts Suppose the owners of a car manufacturing company are thinking of entering the motorcycle production business. How would a PPC model help them make a decision?
Problem 8
Explain how self-interest is part of each economic choice. Use an example from your own experience that shows how you purposely served your own self-interest in a choice you made.
Problem 8
Consider the following entrepreneurs: Lucy, who runs an organic farm, and Ron, a sports superstar who owns several restaurants. Describe how they may have used entrepreneurship to establish and run their businesses.
Problem 9
Select a 10 -minute period of time in your day-to-day life-when you are in the cafeteria at lunchtime, for example. Analyze how scarcity affects your activities during this time period. Write your analysis in a paragraph.
Problem 9
Distinguishing Fact from Opinion Consider the example of the state lottery to raise money for education. How might it be possible for two economists to see the same information and arrive at different opinions about what to do?
Problem 9
Analyzing Cause and Effect If new technology was introduced but there were not enough skilled workers to use it, where would the nation's production be plotted on the PPC-inside or outside the curve? Explain your answer.
Problem 10
Challenge When you go out shopping, do you often worry that there will be a shortage of something you really want? If so, explain why you think there might be a shortage. If not, explain why there seems to be enough of everything you would want to buy.
