1. Give three examples of important trade-offs that you face in your life.
The first trade-off that I have faced in my life was the decision to get married and have a family. The trade-off can be
interests that I find enjoyable. The time trade-off in marr
5.2 Economic Concepts
Our last major purchase was in June of 2008 which was a vehicle. The vehicle was
necessary to replace an over-used vehicle that was becoming less dependable to transport the
family. Part of the situation was the need to have a depend
4.2 Economic Concepts
I researched Bloomberg.com for issues concerning the national economy. I read an article about
consumer confidence in the United States fell in August 2014 to a nine month low because of the
low and gloomy wage perceptions. According
3.2 Economic Concepts
a. Think about when you purchased a product in a monopoly market (where you had
little or no choice of alternative firms offering the product.) Examples might be
instances like food at professional sports event or candy at the movie
2.3 Tax Debate
a. There is considerable debate about taxation and inequality of incomes in the US.
One method of transferring money would to increase taxes on products purchased
primarily by wealthy persons. Would you favor increasing taxes on luxury item
1.4 Problems and Applications
Chapter 1 Question 1, 8; Problems 1 and 6
1. Describe some of the trade-offs faced by each of the following:
a. a family deciding whether to buy a new car
b. a member of Congress deciding how much to spend on national parks
2.2 Economic Concepts
a. Think about a shift in either the supply or demand curve (or both) for a
product. Describe the factors responsible for the shift. What was the effect on price
and quantity sold?
There are many variables that can shift the demand c
1. Explain why an economys income must equal its expenditure.
In an economy there are two parties to every transaction, a buyer and a seller (Mankiw, 2015). W
product or needs a service they are willing to expend their income to pay for the product or ser
As stated by Mankiw (2015) the relationship of total revenue minus the total cost equals the p
The total costs are everythiing that goes into the making of a product such as materials,
1. What is the role of the financial system? Name and describe two markets that are part of
economy. Name and describe two financial intermediaries.
The financial system consists of the institutions that help to match one persons saving with anoth
1.2 Economic Concepts
Describing a major purchase for my wife and I would be the purchase of our home in
2005. This decision was reached after the numerous years of renting a residence. Upon
completion of the rental term, we would walk away with nothing t
1.3 Getting Dressed in the Glob. Economy
a. Do a quick inventory of all the items of clothing you wore as you went about your
work or leisure today.
I have my normal work gear of Aeropostale blue jeans, polo shirt and my undergarment and socks and New Bal
3. Does a change in consumers tastes lead to a movement along the demand curve or a shift in
curve? Does a change in price lead to a movement along the demand curve or a shift in the dema
curve? Explain your answers.
For the change in tastes it would crea