1 - Ecn 1B Answer Key Problem set#1 1 When y changes x...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Ecn 1B Answer Key: Problem set #1 1. When y changes, x stays the same. The line depicting this relationship would be a. Vertical b. Horizontal c. Linear with a negative slope d. Linear with a positive slope Answer: (a) Vertical lines have the relationship where y changes but x stays the same. For example, let us consider the vertical line x=2. Two points on this line are (2,1) and (2, 45). Both these points have an x value of 2; but the points have different y values. 2. Because total income in the United States has increased over time, everyone's total income has increased as well. This incorrect argument is an example of 3. Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is a. Brand B plus Brand C b. Twenty dollars c. Brand A d. Brand B or Brand C, depending on which is considered the highest- value alternative forgone. Answer: (d) Opportunity cost of something is the highest-valued alternative that we give up to get it. So the brand Misty considers to be the highest –value alternative is the opportunity cost of the decision.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4. In the above figure, x is y. To find the relationship between z and x, we have to keep y constant. Let us pick y= 3. Then for this value for y, we will find that when z=3, x=2 and when z=4, x=4 (approximately). Thus when z increases from 3 to 4, x also increases from 2 to 4. So x is positively related to z.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern