pres08_ass1_sol - W1105.001 Principles of Economics Prof...

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W1105.001 Principles of Economics Prof. Musatti Assignment 1, due January 31 st 2008 Before submitting your assignment, please make a copy for your own use. Your assignment will not be returned to you before the recitation sessions. Be sure you include: Name: Recitation Section # Multiple Choice Questions – Please underline your answer 1. A country that does not import products from the rest of the world or export products to the rest of the world a. is better-off because it will learn to be self–sufficient. b. can only consume what it can produce. c. benefits from international specialization. d. is better-off as it does not have to pay a higher price for imported goods. e. will necessarily have high rates of unemployment. 2. Which of the following examples illustrates the economic principle that resources are scarce? a. Bill Gates, the richest man in the world, is quite frustrated that he cannot do more to fight malaria in Africa. b. Andy once said to Martha: “if only there were 26 hours in a day, I would be a happy man”. c. Andrea is a perfectly content woman, however she often wishes she had more money to send to her mother in the Philippines. d. If the Government of the United States wants to launch a program to upgrade the vast but somewhat broken US highway system, it will have to cut funding for children’s health insurance. e. all of the above. 3. This May, Coldplay, a British rock band, is touring the U.S. Matt, a college student at UNC in Chapel Hill, is making plans to go to the New York gig. The concert ticket costs $60. The night of the concert he could sleep at the West Side YMCA where the daily rate is $45. At the concert he could show off the Coldplay T-shirt he bought on-line last year for $20 and that he likes so much that he wears it every other day. To reach NYC he could fly from Raleigh for $350 but he decides he would rather hitch hike his way to the Big Apple and back. It would take him two days and he would have to pay $70 for the two nights in motels (one each way), still he likes the idea better than flying. Matt’s opportunity cost of going to the concert
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This note was uploaded on 04/08/2008 for the course ECON W1105 taught by Professor Musatti during the Fall '07 term at Columbia.

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pres08_ass1_sol - W1105.001 Principles of Economics Prof...

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