3551 - First Assignment Questions - Sp-08

3551 - First Assignment Questions - Sp-08 - Econ 3551...

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Econ 3551 Online Sp-08 First Assignment Questions 1. One of my in-laws (who shall remain nameless) always plays the Lotto because he figures that the odds of winning are about 50%. He reasons that you either win or you loose. Therefore, there are two possible outcomes and this means that one has a one-in- two chance of winning (i.e., a fifty percent chance). a) Is he “rational” in the economic sense? Why or why not? ____________________________________________________________ b) Is he stupid? Why or why not? ____________________________________________________________ 2. To get into this class, you had to pay tuition. In order for you to do this assignment, you did not have to pay anymore money. As a consequence is there a cost to you in doing this assignment, or is it costless? Support your answer. (Note: Don’t over-write - - Zero in on the main point.) __________________________________________________________________ 3. The example of the most important benefit of using Biore Strips was an__________ (choose either “explicit” or “implicit”) benefit. Briefly identify this benefit. _______________________________________________________________ 4. If we calculate the elasticity of demand as E = 2.5, is demand elastic, inelastic, or unitary elastic? _____________. Translate your answer into American English. _________________________ 5. Consider the statement: “The Minimum wage causes unemployment to increase.” Is this a positive or normative statement? _____________Why? __________________________________________________________________ 6. Consider the statement: “The higher minimum wage is good for workers.” Is this a positive or normative statement? ______________ Why? __________________________________________________________________ 7. How would you classify demand if a 10% price increase causes demand to decrease by 6%? __________ What is the American English translation? ________ 8. How would you classify demand if a 15% price increase causes demand to decrease by 20%? _________ What is the American English translation? ________

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This homework help was uploaded on 04/17/2008 for the course ECON 3551 taught by Professor St.clair during the Spring '08 term at CSU East Bay.

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3551 - First Assignment Questions - Sp-08 - Econ 3551...

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