Use the following to answer question 1:
Figure: The Market for Hamburgers
0 300 400
Quantity of hamburgers
1. (Figure: The Market for Hamburgers) Look at the ﬁgure The Market for Hamburgers. If
1. Forest is a mountain man living in complete isolation in Montana. He is completely self- sufficient through hunting, fishing, and farming. He has not been in the city to buy anything in five years. One can infer A) the scarcity principle does not
Name: \‘/l/VY\~UW Date:
1. When the economy suffers a downturn and the incomes of many people decrease,
vacationers are more likely to take car trips than to ﬂy. Which of the following provides
one possible explanation for this phenomenon?
A) Air travel a
1. Suppose the equilibrium price of good X is $25 and the equilibrium quantity is 124
units. If the price of good X is $2:
there will be excess demand for good X.
there will be an excess supply of good X.
the market will clear.
Name: Date: ID
1. If a local California avocado stand operates in a perfectly competitive market, that stand
owner will be a:
2. Perfect competition is characterized by:
. A local restrant has estimated that the price elasticity of demand for meals is equal to
2. If the restaurant increases menu prices by 5%, they can expect the number of
customers to decrease by and total revenue to
A) 10%; increase
B) 5%; stay c
GDP: Measuring Total Production and Income
GDP: Gross Domestic Product
Macroeconomists seek to explain economic events and to formulate
policy to improve the performance of an economy.
The three most important indicators of the performance of an
Trade-os, Comparative Advantage, and the Market
: The idea that because of scarcity, producing more of one
good or service means producing less of another good or service
Where Prices Come From: The Interaction of Demand
The model of demand and supply explains how prices are determined in a
: The amount of
Economics: Foundations and Models
: A situation where unlimited wants exceed the
limited resources available to fulll those wants
Hint: Everyone faces scarcity, some more than others .
Scarcity can be in the form of time, money .
ECON:1100:AAA & BBB (06E:001:AAA & BBB)
Principles of Microeconomics
Tippie College of Business
University of Iowa
Stacey Brook, Ph. D.
Homework Assignment #3
Due Date: April 11th 2013 by 5:00pm. Please type up your answers in Microsoft Word and upload th
06E:002:SCA Principles of Macroeconomics Homework 4 Due 25 March, 6:00 pm 1. (a) We know that Y/Pop = Average Labor Productivity x Share of the population employed. Then since the employment share is constant, for two consecutive years, t+1 and t we