HW 1_Solution - ASSIGNMENT: COURSE: DUE DATE: INSTRUCTOR:...

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ASSIGNMENT: Homework #1 COURSE: Principles of Macroeconomics – Econ 2105 DUE DATE: September 14 INSTRUCTOR: Leanora A Brown INSTRUCTION : THIS PDF FILE IS YOUR PERSONAL COPY OF THE HOMEWORK AND SHOULD BE USED TO RECORD YOUR ANSWERS. PLEASE CIRCLE THE CORRECT ANSWERS. PLEASE DO NOT USE A SCANTRON SHEET TO SUBMIT YOUR ANSWERS. 1. Which of the following would be a part of macroeconomics? a) a study of the change in automobile sales due to a change in the price of automobiles b) a study of the impact of tax reduction on the profits of a business c) a study of recessions d) a study of the unemployment of workers displaced by technological change in the typesetting industry 2. The cost of leaving the skating championship before it ends is ________, while the cost of staying for the entire match is ________. a) the opportunity cost of not seeing the perfect “10” performance; zero—the ticket to the championship is already paid so there is no cost b) the opportunity cost of not seeing the perfect “10” performance; the opportunity cost of what else you could have done during that time c) zero—you don't have to pay to leave; zero—the ticket to the match is already paid so there is no cost d) the cost of the ticket; also the cost of the ticket 3. The problem of scarcity is confronted by: a) industrialized societies b) pre-industrialized societies c) societies governed by communist philosophies d) all societies 4. Opportunity cost is: a) about half of the monetary cost of a product b) the dollar payment for a product c) the benefit derived from a product d) the value of the best alternative forgone in making any choice
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5. The basic concern of economics is a) to keep business firms from losing money b) to prove that capitalism is better than socialism c) to study the choices people make d) to use unlimited resources to produce goods and services to satisfy limited wants. 6. The problem of determining what goods and services society should produce a) exists because we can produce more than we need or want b) exists because there are not enough resources to provide all the goods and services that people want to purchase c) would not exist if all goods and services were scarce d) would not exist if government owned all of the resources 7. Assume an economy is operating on its production possibility frontier, which shows the production of military and civilian goods. If the output of military goods is increased, the output of civilian goods: a) will increase, too. b) will not change. c) must decrease. d) may increase or decrease. 8. As long as people have different ________, everyone has a comparative advantage in something. a) direct costs b) benefits c) utility d) opportunity costs Use the following to answer question 9. Scenario: Countries A and B
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This note was uploaded on 03/02/2012 for the course ECON 2105 taught by Professor Staff during the Spring '08 term at Georgia State University, Atlanta.

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HW 1_Solution - ASSIGNMENT: COURSE: DUE DATE: INSTRUCTOR:...

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