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# Econ Lyryx Lab Answers 1 - L ab 1 Name Yo Wen Song Date...

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Print Help Lab 1 Name: Yo Wen Song Date: 2010-09-26 18:08 Printer-friendly version Question 1 [10 points] Choose the term that best matches each of the following descriptions: Marking: a) Rational person Someone with well-defined goals who tries to fulfill those goals as best as he or she can. b) Opportunity cost The value of the next-best alternative that must be forgone in order to undertake the activity. c ) Economic s Economic analysis that offers cause-and-effect explanations of economic relationships. The correct answer was 'Positive economics'. This will cost you 1 mark. d ) Microeconomic s The study of how people make choices under conditions of scarcity and of the results of those choices for society. The correct answer was 'Economics'. This will cost you 1 mark. e) Equit y A state of impartiality and fairness. f) Efficien cy Obtaining the maximum possible output from a given amount of inputs.
g ) Marginal cost The increase in total cost that results from carrying out one additional unit of an activity. h ) Marginal benefit The increase in total benefit that results from carrying out one additional unit of an activity. i) Post hoc fallacy The argument that because event A precedes event B, event A causes event B. j) Average cost Total cost of undertaking n units of an activity divided by n . Total marks for this question: 8 Question 2 [5 points] Your solution to the question was : Identify each of the following as either a positive or normative statement. a) Interest rates are too high. Positive Normative b) A 12-hour workday is too long. Positive Normative

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c) It was too hot yesterday in Vancouver. Positive Normative d) College and university tuition should be lowered so that more students can obtain an education. e) Increasing the number of MRI machines will reduce the waiting time. Positive Normative Marking:
Question 3 [4 points] Your solution to the question was : A group, several weeks ago, chartered a bus trip to Niagra Falls. The driver's fee is \$105, the bus rental \$650, and the fuel charge \$75. The driver's fee is non-refundable, but the bus rental may be cancelled a week in advance at a charge of \$400. At \$25 a ticket, how many people must buy tickets a week before so that cancelling the trip definitely will not pay? Marking: Your answer was: 13 people Congratulations! You have entered the correct answer. Total marks for this question: 4 Question 4 [4 points] Your solution to the question was : A car company spends \$433,300 per week on rent for its factory. Each car made at the factory requires \$1,667 worth of metal and \$4,000 worth of labour and energy. Answer the following questions assuming that the factory produces 100 cars per week.

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