Introduction to Microeconomics(assignment#1)

Introduction to Microeconomics(assignment#1) - Assignment...

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1 Assignment #1 Introduction to Microeconomics Student Name: Student #: Chapter 1 (p. 18) Q1. In each of the following situations, identify which of the nine principles is at work: a. You choose to shop at the local discount store rather than pay a higher price for the same merchandise at the local department store. Answer: This illustrates the concept that people respond to incentives. b. On your spring vacation trip, your budget is limited to $35 a day. Answer: This illustrates the concept that resources are scarce. c. The student union provides a website on which departing students can sell items such as used books, appliances, and furniture rather than giving them away to their roommates as they formerly did. Answer: This illustrates the concept that markets usually lead to efficiency. d. You decide how many cups of coffee to have when studying the night before an exam by considering how much more work you can do by having another cup versus how jittery it will make you feel. Answer: This illustrates the concept that there is a trade-off between two choices. e. There is limited lab space available to do the project required in Chemistry 101. The lab supervisor assigns lab time to each student based on when that student is able to come. Answer: This illustrates the concept that resources should be used as efficiently as possible to achieve society’s goals. f. You realize that you can graduate a semester early by forgoing a semester of study abroad. Answer: This illustrates the concept that opportunity cost is what you give up to get something. g.
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This note was uploaded on 02/20/2010 for the course BBA BBA101 taught by Professor Everyon during the Three '10 term at University of New England.

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Introduction to Microeconomics(assignment#1) - Assignment...

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