Question 1: Principles of economics (5 point each for a total of 45 points) In each of the following situations identify and briefly explain which of the nine principles is at work:
You choose to shop at the local discount store rather than pay a higher price for the same merchandize at the local department store.
2. On your vacation trip your budget is limited to $35 per day. 3. The student union provides a website on which departing students can sell items such as used books, appliances and furniture rather than giving them away to their roommates as they formerly did. 4. You decide on how many cups of coffee to have when studying the night before an exam by considering how much more work you can do by having another cup versus how jittery it will make you feel. 5. There is limited lab space available to do the project required in Chemistry 101. The lab supervisor assigns lab time to each student based on when is that student able to come. 6. You realize that you can graduate a semester early by forgoing a semester of study abroad. 7. At the student union there is a bulleting board on which people advertise used items for sale, such as bicycles. Once you have adjusted for differences in quality all the bikes sell for the same price. 8. You are better at performing lab experiments, and your lab partner is better writing lab reports. So the two of you agree that you will do all the experiments and she will write up all the reports. 9. Provincial governments mandate that is illegal to drive without passing a driving exam.
ECON 201 –001, Assignment #1 Principles of Economics Due Date: September 11, 2013 @ 11.30 a.m.
Question 2: Opportunity cost (15 points) You won a free ticket to see Eric Clapton concert (which has no resale value). Bob Dylan is performing on the same night and is your next best alternative activity. Tickets to see Dylan cost $40.