Econ_101_HW_01_ch_1_2A_Fall_2011

# Econ_101_HW_01_ch_1_2A_Fall_2011 - Economics 101-SFSU Fall...

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Economics 101--SFSU Name: Fall 2011 Homework #1 Due Thursday, Sept. 1, 2011 3 points for each question, a total of 111 points. The extra 11 points are extra credit. 1. Describe at least three of the opportunity costs when you decide to attend college instead of taking a job. 2. Many people regularly commute from the suburbs to downtown Pleasantville. Due to traffic congestion, the trip takes 30 minutes when you travel by highway, but only 15 minutes when you go by side streets. Does this situation describe an equilibrium? Why or why not? If not, what would an equilibrium look like? 3. At the intersection of Main and Broadway are two gas stations. One station charges \$3.00 per gallon for regular gas and the other charges \$2.85 per gallon. Customers can get service immediately at the first station but must wait in a long line at the second. Does this situation describe an equilibrium? Why or why not? If not, what would an equilibrium look like?

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4. At a university dorm, electricity is included in the rent charged to the residents by the university, so the university pays all the electricity bills. Some residents at the dorm leave lights, computers and appliances on when they are not in their rooms. Do you think this situation is efficient? Why or why not? What changes would make the situation efficient? The government imposes a tax of \$5 per pack on cigarettes. Use this information to answer questions 5 to 7. 5. What incentive does this provide to the citizens and how does the incentive work? 6.
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## This note was uploaded on 10/19/2011 for the course ECON 101 taught by Professor Pgking during the Spring '08 term at S.F. State.

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Econ_101_HW_01_ch_1_2A_Fall_2011 - Economics 101-SFSU Fall...

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