ECO 201 Homework Set 1

ECO 201 Homework Set 1 - ECO 201 Homework Set 1 Topics 1...

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ECO 201 Homework Set 1: Topics 1 through 7 50 Points This is a printable version of Homework 1. Answers must be submitted through Blackboard (the Assignments button) by 10PM (EST) on Tuesday, February 5. Remember that no late homework is accepted. 1. Economics is: a. the study of the markets for stocks and bonds b. the study of choice under conditions of scarcity c. exclusively the study of business firms d. fundamentally the same as sociology e. applicable only when scarcity is not a problem 2. Scarcity is a situation in which: a. available resources cannot satisfy all potential uses for the resources b. there are unlimited wants c. resources outnumber the potential uses for resources in society d. there is a surplus, since buyers cannot obtain all of the goods that they want e. society’s productive capital is publicly owned 3. The three groups of decision makers in the economy are: a. households, business firms, and banks b. households, business firms, and governments c. business firms, governments, and banks d. business firms, banks, and foreign traders e. households, governments, and banks 4. Households: a. produce goods. b. sell labor. c. buy goods. d. both a and b e. both b and c 5. Microeconomics: a. addresses scarcity from a global perspective b. examines how individuals, households, and firms make economic decisions c. is purely theoretical and has little value in explaining real-world phenomena d. focuses on what is happening in the economy as a whole 6. Suppose that the following headlines appeared in a newspaper. Which would most clearly represent a macroeconomic issue? a. “Fed Raises Interest Rates” b. “Auto Dealership to Cut Prices” c. “Fanny’s Freeze Dried Prunes to Lay Off 50 Workers” d. “United Workers Union to Strike April 15” e. “Brazilian Coffee Bean Crop Falls by 10 Percent” 7. Positive economics deals with: a. theories about improving people’s self-esteem b. practical ways of improving people’s self-esteem by making money c. opinions that affirm economists’ theories d. statements about the way things ought to be e. statements of fact
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8. Which of the following is a positive statement? a. driving speeds should be lowered so that fewer accidents will occur b. when per capita income falls, fewer meals are consumed at restaurants c. the minimum wage is too low; college students deserve a raise d. cigarette sales should be made illegal in order to reduce the incidence of cancer e. Social Security is a good program for U.S. workers 9. Which of the following is a normative statement? a. the Philadelphia Phillies have won 70 baseball games this year b. the Consumer Price Index rose three-tenths of one percent in May c. in January, the average temperature in San Diego exceeds the average temperature in Minneapolis d. the Philadelphia Phillies need a better manager e. the French trade deficit reached an all-time high last year 10. An economic model is: a. a concrete representation of reality b. as close to reality as possible
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ECO 201 Homework Set 1 - ECO 201 Homework Set 1 Topics 1...

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