Unit 1 Assignment
Student Name: Kennisha Prince
Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed.
1. Determine whether each of the following is primarily a microeconomic or a macroeconomic issue:
i. Setting the price for a cup of coffee. Microeconomic
ii. Measuring the impact of tax policies on total household spending in the economy Macroeconomics
iii. A household’s decision regarding whether or not to go on vacation Microeconomics
iv. A worker’s decision regarding which job to accept Microeconomics
v. Designing government policies to address issues with the social security program Macroeconomics
2. Determine whether each of the following is a positive or normative economic statement. i. A 40-cent-per-pack tax on cigarettes will reduce teenage smoking by 10 percent. Positive
ii. The federal government should spend more on diabetes research. Normative
iii. Rising paper prices will increase book prices. Normative
iv. The price of bagels at Bruegger’s is too high. Positive
3. Determine whether each of the following would cause the United State’s PPF to shift inward, outward, or not at all:
i. A decrease in the average length of annual vacations Shift Inward
ii. An increase in immigration of foreign workers to the U.S. Shift Outward
iii. An increase in the average retirement age Shift Outward
iv. The migration of skilled workers to Europe Shift Inward
4. Determine whether each of the following would increase or decrease the opportunity costs for stay-at-home moms or dads (those who choose not to accept work outside the home). Briefly explain your answers.
Higher unemployment rates. Decrease opportunity cost because she would have to find day care, and plus she might find a job that might pay for less wage.
Lower average wages. Increase...
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