Economics and Essential Work Equipment
CHAPTER 1 a. Short-term financial stress vs long-term increased potential productivity
b. Risk of textbook needing replacement anyway and increased time spent using it if it is worn/hard to read/must be treated carefully vs price
1a. Essential work equipment (also company vehicle, so may/may not have increased mobility leading to reduced transport costs and better access to better/cheaper services); also maintenance
b. As above, except it might be more peripheral as people won't decide whether to use the company based on what kind/condition it is in; also won't need maintenance
c. Service that will insure against potential losses (if the counsel prevents you doing something illegal) /provide an income stream (if s/he tells you about a tax loophole) / damage control (if someone sues)
d. Rental property that will generate income with management
3- (Micro versus Macro) Determine whether each of the following is primarily a microeconomic or a macroeconomic issue:
a. What price to charge for an automobile: Macroeconomics
b. Measuring the impact of tax policies on total consumer spending in the economy: Macroeconomics
c. A household’s decisions about what to buy: Microeconomics
d. A worker’s decision regarding how much to work each week: Microeconomics
CHAPTER 2
4 (Opportunity Cost) You can either spend Spring Break working at home for $80 per day for five days or go to Florida for the week. If you stay home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food and miscellaneous expenses will total about $700. What’s your opportunity cost of going to Florida? (Hint: Answers may vary)
$80x5=$400-$100=$300profit trip to Floirda=$700 expense= -$700 if you stay you make $300 IF you go costs $700+the $300 you would have made if you stay therefore the cost is $300 + $700=$1000
5. a. PPF shifts in because the labor supply is less (assuming the vacations happen outside of the country!)
b. PPF
b. Risk of textbook needing replacement anyway and increased time spent using it if it is worn/hard to read/must be treated carefully vs price
1a. Essential work equipment (also company vehicle, so may/may not have increased mobility leading to reduced transport costs and better access to better/cheaper services); also maintenance
b. As above, except it might be more peripheral as people won't decide whether to use the company based on what kind/condition it is in; also won't need maintenance
c. Service that will insure against potential losses (if the counsel prevents you doing something illegal) /provide an income stream (if s/he tells you about a tax loophole) / damage control (if someone sues)
d. Rental property that will generate income with management
3- (Micro versus Macro) Determine whether each of the following is primarily a microeconomic or a macroeconomic issue:
a. What price to charge for an automobile: Macroeconomics
b. Measuring the impact of tax policies on total consumer spending in the economy: Macroeconomics
c. A household’s decisions about what to buy: Microeconomics
d. A worker’s decision regarding how much to work each week: Microeconomics
CHAPTER 2
4 (Opportunity Cost) You can either spend Spring Break working at home for $80 per day for five days or go to Florida for the week. If you stay home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food and miscellaneous expenses will total about $700. What’s your opportunity cost of going to Florida? (Hint: Answers may vary)
$80x5=$400-$100=$300profit trip to Floirda=$700 expense= -$700 if you stay you make $300 IF you go costs $700+the $300 you would have made if you stay therefore the cost is $300 + $700=$1000
5. a. PPF shifts in because the labor supply is less (assuming the vacations happen outside of the country!)
b. PPF