Ec 202 Lecture Notes - Lecture 1: Resource Depletion, Opportunity Cost, Complementary Good

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limeeagle741

28 Apr 2020

School

PSU

Department

Economics

Course

Ec 202

Professor

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Document Summary

Increases in wealth help facilitate economic growth: economic growth causes increases in wealth, wealth and economic growth are negatively related, economic growth causes resource depletion and reduces society"s wealth. Page 1: suppose a famous baseball player, alex rodriguez, hires a high school student to paint his house. A and b, which of the following statement(s) is correct? advantage = comparative. Ability to produce more deeply than competitors: country a has a comparative advantage in good y. Country b has an absolute advantage in both goods. Country b has a comparative advantage in good x. Page 2: table: maximum willingness to pay. The table shows four individuals" maximum willingness to pay for one pound of bananas. Calculate the total dollar amount of producer surplus earned in this market at a price of : ,000, ,000, , , suppose that the equilibrium price in the market is . If the current market price is the equilibrium price will fall to . 50.

Related Questions

1. Which one of the following products is not included in calculating GDP

a) Coffee powder brought by a supplier to make coffee for clients in a coffee shop.

b) A laptop bought by a consumer for private use

c) A laptop bought by a consumer for business use.

d) Services provided by a mobile service provider.

e) None of the above.

2. You are enrolled as a full time student at a college. You paid R10 000 to register for the year. You will be at the college the entire day and will have to buy lunch at the college canteen. Your opportunity costs for studying is/areâ¦

a) R10 000

b) R10 000 plus lunch costs at the college

c) Your lunch costs at the college plus the amount of money you couldâ e earned if you were working

d) Your lunch costs at the college

e) The money you couldâ e earned if you didnât study full time

3. 9. The marketing concept can be considered to be an ethical code according to which the marketing task is performed. Which of the following can be considered to be principles of the marketing concept?

i. Pursuit of profit

ii. Supplier orientation

iii. Social responsibility

iv. Brand loyalty

v. Organisational integration

a) i, ii, iii

b) i, ii, iii, v

c) i, iii, v

d) ii, iii, iv, v

4. 15. The PPF does N T represent â¦

a) Opportunity cost

b) The production capacity under present circumstances

c) Inefficiency

d) n organisationâs most profitable products

e) Production that cannot be reached under present circumstances

pucelion39

1. Which of the following cannot be determined using a production possibility table?

What combination of outputs can be produced.
How much less of one output can be produced if more of another output is produced.
What combination of outputs is best.
How much output can be produced from a given level of inputs.

2. Internal government debt is:

debt owed by citizens to their government.
debt owed by one government to another government.
government debt owed to citizens.
government debt owed to foreigners.

3. In general, budget deficits should:

never be run since they slow economic growth over the long run.
never be run since they crowd out investment in the short run.
be run on a temporary basis whenever the economy is below potential output.
be run on a permanent basis since they can always be financed over and over again.

4. If taxes and government outlays were constant and did not vary with income, then:

passive deficits would increase.
passive deficits would not exist.
structural deficits would increase.
structural deficits would not exist.

5. If the debt of the federal government increases by $10 billion in one year, then the budget:

deficit in that year must be $10 billion.
surplus in that year must be $10 billion.
deficit in that year decreased by $10 billion.
surplus in that year increased by $10 billion.

6. Which of the following would make the impending Social Security problem worse?

Raising income taxes when the baby boomers begin to retire.
Reducing the age at which one is eligible to receive payments.
Reducing Social Security retirement benefits.
Introducing means testing.

7. The price mechanism is: (Points : 5)

not affected by social and political forces.
affected by social but not political forces.
affected by political but not social forces.
affected by both political and social forces.

8. Social forces:

affect the price mechanism through cultural norms.
affect the price mechanism, but not the legal system.
affect the price mechanism through scarcity.
do not affect the price mechanism.

9. Opportunity cost is the same as marginal cost.

True
False

10. Which of the following is a characteristic of a market economy?

Private property.
Government ownership of the means of production.
Distribution according to need.
Tradition determines the what, how, and for whom decisions.

11. Mexico has a comparative advantage in producing corn:

if its opportunity cost of producing corn is higher than the opportunity cost in other countries.
if its opportunity cost of producing corn is the same as the opportunity cost in other countries.
if its opportunity cost of producing corn is lower than the opportunity cost in other countries.
regardless of the opportunity cost in other countries.

12. The opportunity cost for a student of attending college for a year is best measured by the:

benefit received by the student.
tuition paid for the year.
value of the next-best activity forgone by attending college.
total money outlays associated with attending college.

13. A passive deficit is the portion of the deficit that exists when:

the economy is at potential income.
the economy is beneath potential income.
inflation is not fully anticipated.
inflation is fully anticipated.

14. An important international lending institution is the:

IMF.
The Group of Eight.
EU.
WTO.

15. Private property rights:

are essential elements of a market economies.
do not need to be enforced in market economies.
must be established before a socialist economy can function properly.
ensure an equitable distribution of income in market economies.

16. If a country has a comparative advantage in the production of a good, then its resources are better suited to the production of that good than the resources of other countries.

True
False

17. As the interest rate rises, debt service:

decreases.
does not change, but debt increases.
increases.
does not change and neither does the debt.

18. Your opportunity cost of taking this course is:

the tuition you paid for the course.
the benefit of the activity you would have chosen if you had not taken the course.
the benefit you get from taking this course.
the cost of the activity you would have chosen if you had not taken the course.

19. One advantage of a corporation over a sole proprietorship is:

greater accountability.
avoidance of double taxation.
ease of formation.
greater ability to obtain funds.

20. Maintaining objectivity is easiest in:

positive economics.
the art of economics.
normative economics.
it is just as easy in all of the above

byzantiumimpala567

Q1 after Alistair earned his BA, he had to decide whether to accept the offer of a job that will pay him $45,000 per year or spend an additional two years earning an MBA. If he decides to pursue the graduate degree, his annual expenses for tuition, books, board, and lodging will be $32,000. Alistair has been offered a scholarship for $10,000 per year, but to pay the remaining $22,000 per year, he would have to cash in savings bonds that his grandparents have given him that have been earning $500 in interest per year. The annual opportunity cost of earning his MBA is:

1-$67,500.

2- $77,000.

3-$99,000.

4-$77,500.

Q3 Which statement about opportunity cost is NOT true?

1-Opportunity cost may be larger than monetary cost.

2-Opportunity cost includes both explicit and implicit costs.

3-The real or opportunity cost of something is what you must give up to get it.

4-Opportunity cost is synonymous with explicit costs.

Q3 If goods A and B are substitutes, a decrease in the price of good B will

increase the demand for good A.

increase the demand for good B.

decrease the demand for good A.

increase the demand for good B and decrease the demand for good A.

Q4 Suppose that, as incomes in a community increase, the demand for taxi service increases and the demand for bus service decreases. From this, it can be concluded that:

Both taxi service and bus service are inferior goods.

Both taxi service and bus service are normal goods.

Taxi service is a normal good; bus service is an inferior good.

Taxi service is an inferior good; bus service is a normal good.

Q5In economics, a marginal value refers to:

the value associated with an unimportant, or marginal, activity.
	a value entered as an explanatory item in the margin of a balance sheet or other accounts.
	the value associated with one more unit of an activity.
	a value that is most appropriately identified in a footnote. Q6 The terms decrease in demand and decrease in quantity demanded can be used interchangeably. True or false

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Ec 202 Lecture Notes - Lecture 1: Resource Depletion, Opportunity Cost, Complementary Good

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