devry econ312n week 1 homework latest 2016 may

Problem statement -3 The line labeled DI in the graph to the right shows the number of cups of lemonade that Caroline and Emily can sell at their lemonade stand at various prices.

Caroline and Emily have noticed that they sell more lemonade when it's hotter.

Question: —>

At a price of $0.50, how many more or fewer cups of lemonade do Caroline and Emily sell when the temperature is 90 degrees than when the temperature is 80 degrees?(Note: indicate the change in cups of lemonade sold: fewer will be a negative number and more will be a positive number)

A. 5

B. 15

C. 0

D. -2

2

Every week, Kate plays the guitar for four hours, and her grade on each English test is 8O percent. Last week, after playing for four hours, Kate considered playing for another hour. She decided to play for another hour and cut her study time by one hour. But last week, her English grade fell to 60 percent.

What was Kate's opportunity cost of the fifth hour of playing the guitar?

a. One hour of study time.

BE A 20 percentage point drop in her English grade

QC. The extra hour of playing the guitar.

0 D. Watching television

QE 8O percent in English.

3

Every week, Mary does gymnastics for one hour, and her grade on each English test is 85 percent. Last week after working out for one hour, Mary considered working out for another hour. She decided to work out for another hour and cut her study time by one hour. But last week her English grade fell to 70 percent.

Did Mary make her decision on the margin?

a Mary made her decision at the margin because she considered the benefit and cost of one additional hour of gymnastics.

b Marys decision was not made at the margin because she could have chosen not to do gymnastics but didn't.

C Marys decision was not made at the margin because she didn't compare the total benefit and total cost of a first hour of gymnastics.

D Marys decision was not made at the margin because the marginal cost of a lower grade always exceeds its marginal benefit.

E Marys decision was made at the margin because her grade fell by only 15 percentage points.

4

Classify the following newspaper headlines as positive or normative statements

Statement 1 Smoking causes lung cancer.

Statement 2 Flex-time, which allows employees to shift their work hours over a two-week period, will allow workers to better meet family needs.

OA. Statement 2 is a positive statement because it can be tested. Statement 1 is a normative statement because it can't be tested.

lB. Statement 1 is a positive statement because it can be tested. Statement 2 is a normative statement because it can't be tested.

QC. Statement 1 is a normative statement because it can be tested. Statement 2 is a positive statement because it can't be tested.

D. Statement 2 is a positive statement because it can't be tested. Statement 1 is a positive statement because it can't be tested.

5

One of the following statements is an example of a positive statement. Which one is it?

Vote Democrat

Some people are too fat.

Poverty should be abolished.

Every mother should be able to find affordable day care.

Nuclear power is cheaper than conventional power.

One of the following statements is an example of a normative statement. Which one is it?

Cell phones are better than land lines.

06 Generic drugs cost less than brand names.

Oc China has cut the cost of textiles. O

D The earth is getting cooler. QE

e The minimum wage has stagnated for a decade.

6

Which statement is an example of economics as a policy tool?

QA All sheep are black.

OB The apple harvest lasts for 8 weeks in Pennsylvania.

QC Every child should have a dog.

OD You should vote Democrat

E More people are bu3.ing used cars.

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7

The following news items are either normative or positive statements.

1. The United States should spend more on the environment and less on space exploration.

2. A ban on smoking will lower the Medicare budget.

3. MP3 file sharing has decreased CD sales.

4. Work hours are too long.

Which of the statements are normative?

QA. Statements #2 and #3 are normative.

B. Statements 1 and #4 are normative.

Qc. Statements 1 and #3 are normative.

OD. Statements 3 and #4 are normative.

8

If the price of a personal computer falls to $50, the marginal cost of buying a new computer .----- which---------- th incentive to buy a new computer.

rises; strengthens

rises; weakens

falls; strengthens

either falls or rises; either weakens or strengthens

falls; weakens

9

The following headlines are examples of economics being used as a tool to make a decision.

1. Developers rush to build more homes.

. Bank regulation tightened to end wild lending spree.

2. High unemployment rate keeps people in school longer.

Statement =l is an example of using economics to make a decision.

Statement =2 is an example of using economics to make a decision.

Statement =3 is an example of using economics to make a decision.

persons; a government; persons

persons; businesses; a government

businesses; a government; persons

businesses; businesses; a government

businesses; businesses; persons

10

One of the following statements is an example of a positive statement. Which one is it?

The minimum wage has stagnated for a decade.

0 B Some people are too skinny.

QC Workers must not be lazy.

0o Every mother should be able to find affordable day care.

One of the following statements is an example of a normative statement. Which one is it? –

Some people are too rich

bThe earth is getting hotter

C China has cut the cost of textiles

D Education brings a higher income

11

Which statement is an example of economics as a policy tool?

A. Exercise controls weight.

08. More students are taking out student loans.

C. Most children have a pet.

D. Every child should have a dog.

12

The opportunity cost of skates is best defined as thE

ivalue of the highest-valued alternative given up to get skates

the time spent getting skates

value of all the alternatives given up to get skates

money spent on skates

13

Are either or both of these newspaper headlines positive or normative?

1.We should use more nuclear power.

2. An increase in the minimum wage will bring more teenage unemployment.

AStatement #1 is a positive statement because it can't be tested. Statement #2 is a normative statement because it can be tested.

BStatement #1 is a normative statement because it can't be tested. Statement #2 is a positive statement because it can be tested.

C. Statement 41 is a positive statement because it can be tested. Statement #2 is a normative statement because it can't be tested.

D. Statement #1 is a normative statement because it can be tested. Statement #2 is a normative statement because it can be tested.

14

table shows data on the quantities of compact discs and music videos sold.

YEAR 2004 2006 2008

Quantity of CDs sold (millions Appendix Problem 1 per year)

775 625 375

Quantity of Quantity of music CDs sold videos sold Year (millions per year)

33 23 13

750 2006 625 23 700 2008 375 13 650 625 600 550

Draw three points that represent the data in the table. Draw a curve through the pointS

The relationship in the graph

is positive

is negative

shows two variables that are unrelated

15

The table gives information about the relationship between the variables x and y.

x 1 2 3 4

y 31 28 23 16

1. Draw the four points that describe the relationship. Draw a curve to show the relationship between x and y.

2. The relationship between x and v is

positive becoming steeper

positive becoming less steep

positive and linear

negative becoming steeper

3. The graph shows the relationship between x and y.

Draw a line that intersects both x and y axes and is tangent to point A-a line that touches point A and no other point on the curve. Label it T. D aw a line that intersects both x and y axes and that is tangent to point 8—a line that touches point B and no other point on the curve. Label it TB.

4. The slope of the relationship at point A is —4 and the slope of the relationship at point B is

16

Draw a curve that shows that the number of planes built and the quantity of tuna purchased are unrelated.

Label it U.

17

The graph shows a relationship between two variables, x and y.

What is the slope of the relationship? The slope of the relationship is

>>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.

18

The table gives information about the relationship between two variables: x and y

. What is the slope of the relationship? The slope of this relationship is >>> If the slope is negative, use a minus sign. If the slope is positive, do not use a plus sign.

19

Draw a relationship that rises to a maximum point and then falls. Label the curve C.

Draw a point at the maximum y value and the x value at which the maximum occurs.

Question is complete.

20

The table gives information about the relationship between two variables: x and y.

The relationship between x and v is . AND The SLOPE OF relationship as x increases

positive; falls

positive; remains constant

negative; rises

negative; remains constant

21

The graph shows a relationship between two variables, x and y. What is the slope of the relationship? The slope of the relationship is-------

22

The table gives information about the relationship between two variables: x and y.

The relationship between x and v is increases. And slope as increases

positive; remains constant

positive; falls

negative rises

negative; remains constant

23

35

Ethel and Fred both own bakeries. The figure shows Ethel's ppfe and Fred's PPFF.

How many muffins does Fred bake if he specializes in the good in which he has comparative advantage and bakes the maximum quantity possible?

If Fred specializes in the good in which he has comparative advantage and bakes the maximum quantity possible, he bakes 10 dozen muffins per hour.

34

Olivia and Helen produce afghans and quilts. The figure shows Olivia's PPF0 and Helen's PPFF. Olivia and Helen can achieve gains from trade if

A Helen sells both afghans and quilts to Olivia in exchange for money

B Olivia sells both afghans and quilts to Helen in exchange for money

C Olivia sells afghans to Helen in exchange for some of the quilts that Helen produces

D. Helen sells afghans to Olivia in exchange for some of the quilts that Olivia produces

33

Elizabeth owns an ice cream parlor. In an hour she can produce 10 milkshakes or 30 ice cream sundaes. Ben also owns an ice cream parlor. In an hour he can produce 3 milkshakes or 8 ice cream sundaes. Elizabeth's opportunity cost of 1 milkshake is . Ben's opportunity cost of 1 milkshake is

A 3 ice cream sundaes; 1 ice cream sundae

b 1 ice cream sundae; 3 ice cream sundaes

C 1 ice cream sundae; 0.33 ice cream sundae

0.33 ice cream sundae; 1 ice cream Sunday

-----has a comparative advantage in milkshakes.

32

Two countries: Arctica and Antarctica, produce only two goods: frozen fish and party ice.

The table gives their production possibiliities.

------------- has a comparative advantage in producing frozen fish and -----------advantage in producing party ice.

A Arctica; Antarctica

b Arctica; Arctica

c Antarctica; Arctica

D. Antarctica; Antarctica

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30

Bonnie also owns an ice cream parlor. In an hour: she can produce 7 milkshakes or 21 ice cream sundaes

Esther owns an ice cream parlor. In an hour, she can produce 14 milkshakes or 70 ice cream sundaes.

Bonnie's opportunity cost of 1 milkshake is 3 ice cream sundaes.

Esther's opportunity cost of 1 milkshake is 5 ice cream sundaes.

------------ has a comparative advantage in milkshakes and --------has an absolute advantage in both goods.

A Esther:Esther

Bonnie; Esther c

Bonnie:Bonnie

d Esther:Bonnie

31

Both Mia and Mario specialize in producing the item in which they have a comparative advantage. Then they trade one pasta dish for one pizza..

Before specialization and trade started, Mia and Mario were each producing 6 dishes of pasta and 6 pizzas an hour.

The total gains from trade are

A. 18, 6

B. 6,18

C 6,6

D. 18, 18