Mt445 Unit 1 Assignment 1

Topics: Economics, Production-possibility frontier, Microeconomics Pages: 3 (476 words) Published: November 13, 2014
Unit 1 Assignment
Student Name: Ashley James

Please answer the following questions located in the template document. Submit the file as a Microsoft® Word® document to the Dropbox when completed.

1. Analyze whether each of the following is primarily a microeconomic or a macroeconomic issue:

i. Setting the price for a cup of coffee. This is a microeconomic issue.

ii. Measuring the impact of tax policies on total household spending in the economy. This is a macroeconomic issue.

iii. A household’s decision regarding whether or not to go on vacation. This is a microeconomic issue.

iv. A worker’s decision regarding which job to accept. This is a microeconomic issue.

v. Designing government policies to address issues with the social security program. This is a macroeconomics issue.

2. Explain why each of the following is either a positive or normative economic statement. i. A 40-cent-per-pack tax on cigarettes will reduce teenage smoking by 10 percent. This is a positive economics statement.

ii. The federal government should spend more on diabetes research. This is a normative economic statement.

iii. Rising paper prices will increase book prices. This is a normative economic statement.

iv. The price of bagels at Bruegger’s is too high. This is a positive economic statement.

3. Identify the effect of each of the following on the United States Production Possibilities Frontier (PPF). Does it shift inward, outward, or not at all?

i. A decrease in the average length of annual vacations. Inward

ii. An increase in immigration of foreign workers to the U.S. Outward

iii. An increase in the average retirement age. Outward

iv. The migration of skilled workers to Europe. Inward

4. Identify whether each of the following would increase or decrease the opportunity costs for stay-at-home moms or...
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