ECON 2030 Chapter : Econ Lab

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azuremammoth471

15 Mar 2019

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1/21/2015 6:45:00 pm: suppose remus decides to go fishing at lake pescaccio on his day off from work, but he faces a choice: he can fish to the east, south, or west side of the lake. His expected catch for the day is as follows: 3 fish on the east side, 4 fish on the south side, or 5 fish on the west side. **opportunity cost is the best alternative (5 fish on west is greater than 3 fish on east: suppose a parking garage has the following pricing schedule: 0-2 hrs, ; The marginal (i. e. , extra) cost of the first hour of parking is ____: sh, , , , . **1 hour is more than 0 hours. 4 sh: the marginal (extra) cost of the fourth hour of parking is ___, sh, , , , . To do this, she would have to cancel her weekly french tutoring session for which she would have been paid .

Related Questions

1. The following table provides the quantity of fish and coconuts that each individual can catch or gather in one hour.

Coconuts Fish
Adam 6 2
Friday 6 4

a. Who has the absolute advantage in catching fish?
b. What is Friday's opportunity cost of gathering one coconut?
c. Who has the comparative advantage in catching fish?

2. Classify each statement as either a normative economic statement or a positive economic statement.
a. As a person consumes more and more of a good, marginal utility declines.
b. The United States has the best health care system in the world.

3. Consider the market for the Apple iPod, a normal good, for the month of September. Record in the following table how the following event would affect the market for an iPod. Use the words increase, decrease, unchanged, and uncertain.

Event Supply Demand Equilibrium Price Equilibrium Quantity {this is the table}

There is a technological advance in the manufacture of an iPod.

4. You own an electronics company that supplies to local businesses. In a typical month, you sell 200 Dell laptops and 200 HPlaptops. HP estimates the price elasticity of demand for their laptops to be -1.5. Dell estimates that the cross-price elasticity of demand between their laptop computers and HP laptops is 0.80 (Monday's lecture will help you answer this part of the question). This month HP lowered the price of their computers by 5 percent. Based on this information, what would expect to happen to your sales of HP and Dell computers? (State whether this change is an increase or decrease and give the percentage change.)

HP _____________ of ______________%

Dell ______________ of ____________%

Given your answers above, estimate the number of HP and Dell computers you will sell this month.

HP:_______________ Dell:_____________________

Representative multiple-choice questions.

5. If there is a surplus of a product, its price:
a. is in equilibrium.
b. is below the equilibrium level.
c. will rise in the near future.
d. is above the equilibrium level.

6. Suppose that steak and potatoes are complements. Then, other things being equal, an increase in the supply of steak will lower its price and:
a. increase the demand for potatoes and increase the price of potatoes.
b. increase the demand for potatoes and decrease the price of potatoes.
c. decrease the demand for potatoes and increase the price of potatoes.
d. decrease the demand for potatoes and decrease the price of potatoes.

coralgnu583

5. A decision at the margin

Larry is a hard-working college freshman. On Saturday, he decides to work nonstop until he has answered 200 practice problems for his economics course. He starts work at 8:00 AM and uses a table to keep track of his progress throughout the day. He notices that as he gets tired, it takes him longer to solve each problem.

Time	Total Problems Answered
8:00 AM	0
9:00 AM	80
10:00 AM	140
11:00 AM	180
Noon	200

Use the table to answer the following questions.

The marginal, or additional, gain from Larry's second hour of work, from 9:00 AM to 10:00 AM, problems.

The marginal gain from Larry's fourth hour of work, from 11:00 AM to noon, problems.

Later, the teaching assistant in Larry's economics course gives him some advice. Based on experience, the teaching assistant says, working on 70 problems raises a student's exam score by about the same amount as reading the textbook for 1 hour. For simplicity, assume students always cover the same number of pages during each hour they spend reading.

Given this information, to use his 4 hours of study time to get the best exam score possible, how many hours should he have spent working on problems and how many should he have spent reading?

0 hours working on problems, 4 hours reading

1 hour working on problems, 3 hours reading

2 hours working on problems, 2 hours reading

3 hours working on problems, 1-hour reading

ultramarineporcupine742

Question 1. Suppose that a decision maker is confronted with a choice between (i) the certainty of a $200 gain and (ii) a gamble where there is a 0.40 probability that he will gain $600 and a 0.60 probability that he will lose $20. Moreover, suppose that the utilities he attaches to -$20, $200, and $600 are -5, 10 and 25 respectively. Which course of action will he choose?

(a) .The gamble, since the expected utility from the gamble is greater than O.

(b) The gamble, since the expected utility from the gamble exceeds that from the certainty of a $200 gain.

(d) The certainty 'of a $200 gain, since the expected utility from the certainty of a $200 gain exceeds that from the gamble.

(e) He will be indifferent between the two, since both actions yield the same expected utilities.

2. An increase in monetary gain of $1 is associated with smaller and smaller increases in utility as the monetary gain increases in size. People with utility functions of this sort are (a) risk neutral

(b) risk averters

(d) utilitarians

3. An increase in monetary gain of $1 is associated with larger and larger increases in utility as the monetary gain increases in size. People with utility functions of this sort are

(a) risk neutral

(b) risk averters

(d) utilitarians

Question 4. You are trying to decide whether or not to join your friends down at the local refreshment centre. Unfortunately, you have an economics exam tomorrow. You have tried to keep up with the assignments and believe that if you do not study any more you have a 0,8 chance of getting at least a 70 on the exam, If you are lucky, however, and the lecturer does not ask any of the material you are still confused about, you will get a 90 (20% chance). However, if you stay horne and study you have a 90% chance of getting an 85 and a l0%'chance of getting a 75, If you wish to maximize the expected points on this exam, what should you do?

Question 5. Bud Weiser's Neumann-Morganstern utility function can be represented by the following equation U = 9 + M - 0.01M^2 where U is utility and M is monetary gain (in thousands of dollars), He has the opportunity to invest $20,000 in The Bourbon Cowboy Bar and Grill. He believes that there is a 2/3 chance that he will lose his entire investment and a 1/3 chance that he will gain $30,000.

(i) If he makes the investment, what is his expected utility?

(ii) Should he make the investment?

pucerat135

ECON 2030 Chapter : Econ Lab

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