Week 1 Assignment: Macroeconomics
Week 1 Assignment
Grantham University
Macroeconomics
09 June 2013
Week 1 Assignment
Chapter 1 – 3 & 7
3. a. What method is used to ration goods in a market economy? How does this rationing method influence the incentive of individuals to supply goods, services, and resources to others? The method used is market price rationing. This method is done by applying a price to items that are to be rationed. The higher the price, the less people can afford the item and is reserved for the elite with the most money. The lower the cost, the more people are able to buy the item or service. “Keeping up with the Jones” is a form of market price rationing. People will pay a higher price to appear that …show more content…
There is no minimum or maximum number of A’s that must be given out for this class. It is not a first come, first serve basis. There is no money involved in buying your grades and grades are not dependent upon your social or business stature. This ensures that grades are given out to those that work for them. Those that work harder get better grades than those that do little to no work at all. If they were rationed accounting to the teachers likes and dislikes, there would be a lot of bribing and illegal activities to get the teachers favor. Money and sex has gotten a lot of people in trouble and will continue to do so in the …show more content…
If he goes for the fourth plate, he is wondering if it is worth it. Is it worth it for the price? Is the food quality good for another plate? Is the public perception of his fourth plate worth it? Will his health be affected with a fourth plate? The payment has already been made in the beginning covering the “all you can eat”. Now, he just has to weigh in all of the other aspects of his decisions so far and figure out what is actually in his best interests.
Chapter 2 – 6, 7, 13
6. If you have a private-ownership right to something, what does that mean? Does private ownership give you the right to do anything you want with the things that you own? Explain. How does private ownership influence the incentive of individuals to a) take care of things, b) conserve resources for the future, and c) develop and modify things in ways that are beneficial to others?
Grantham University
Macroeconomics
09 June 2013
Week 1 Assignment
Chapter 1 – 3 & 7
3. a. What method is used to ration goods in a market economy? How does this rationing method influence the incentive of individuals to supply goods, services, and resources to others? The method used is market price rationing. This method is done by applying a price to items that are to be rationed. The higher the price, the less people can afford the item and is reserved for the elite with the most money. The lower the cost, the more people are able to buy the item or service. “Keeping up with the Jones” is a form of market price rationing. People will pay a higher price to appear that …show more content…
There is no minimum or maximum number of A’s that must be given out for this class. It is not a first come, first serve basis. There is no money involved in buying your grades and grades are not dependent upon your social or business stature. This ensures that grades are given out to those that work for them. Those that work harder get better grades than those that do little to no work at all. If they were rationed accounting to the teachers likes and dislikes, there would be a lot of bribing and illegal activities to get the teachers favor. Money and sex has gotten a lot of people in trouble and will continue to do so in the …show more content…
If he goes for the fourth plate, he is wondering if it is worth it. Is it worth it for the price? Is the food quality good for another plate? Is the public perception of his fourth plate worth it? Will his health be affected with a fourth plate? The payment has already been made in the beginning covering the “all you can eat”. Now, he just has to weigh in all of the other aspects of his decisions so far and figure out what is actually in his best interests.
Chapter 2 – 6, 7, 13
6. If you have a private-ownership right to something, what does that mean? Does private ownership give you the right to do anything you want with the things that you own? Explain. How does private ownership influence the incentive of individuals to a) take care of things, b) conserve resources for the future, and c) develop and modify things in ways that are beneficial to others?