A university decides to change its late-night bus service between the campus and student housing from a fare-based service to a free service. This statement means that the incentive to ride the bus The university's decision is a decision. O A. remains the same; macroeconomic O B. changes; macroeconomic O C. remains the same; microeconomic O D. changes; microeconomic

A university decides to change its late-night bus service between the campus and student housing from a fare-based service to a free service. This statement means that the incentive to ride the bus The university's decision is a decision. O A. remains the same; macroeconomic O B. changes; macroeconomic O C. remains the same; microeconomic O D. changes; microeconomic

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 1SCQ: Suppose Alphonsos town raised the price of bus tickets to 1 per trip (while file price of burgers...

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QUESTION 20 A production possibilities curve shows: OA the maximum amounts of two goods that can be produced assuming the full and efficient use of available resources OB. combinations of capital and labor necessary to produce specific levels of output. OC. that resources are unlimited. OD. that people prefer one of the goods more than the other. QUESTION 21 Which of the following is likely to have the most elastic demand curve? OA Tobacco products OB. Medical services. OC. Gasoline OD. Honda automobiles QUESTION 22 (The following economy produces two products: wheat and steel) (The following economy produces two products: wheat and steee). thes A 1 F Refer to the above table. Moving from point C to point D, the opportunity cost of the third unit of steel is: OA 15 units of wheat. OB. 10 units of wheat. OG-30 units of wheat. OD. 20 units of wheat.
The graph shows the market for paper. The government passes a new law that limits the quantity of paper that producers sell to 40 tons of paper a day. C because This market for paper is O A. efficient; production is greater than zero O B. inefficient; the marginal cost of the 40th ton of paper is greater than the marginal benefit from the 40th ton of paper inefficient; more paper could be produced O C. O D. inefficient; the marginal benefit from the 40th ton of paper is greater than the marginal cost of the 40th ton of paper O E. efficient; the marginal cost of the 40th ton of paper equals the marginal benefit from the 40th ton of paper Draw the deadweight loss when production is 40 tons of paper a day. Label it. 20.00 18.00- 16.00- 14.00- 12.00- 10.00- 8.00- 6.00+ 4.00- 2.00- Price (dollars per ton) 6.00 0.00+ 0 S ID 40 60 80 100 120 Quantity (tons per day) >>> Draw only the objects specified in the question. 20 OU 140
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uestion 1 When a society cannot produce all the goods and services people wish to have, it is said that the economy is experiencing O scarcity O surpluses O inefficiencins O inequalities Question 2 Which of the following statements best represents the principle represented by the adage, "There is no such thing as a free lunch"? O Megan U. must decide between going to a track event or doing her nails. O Sarah B. can attend the concert only if she takes her sister with her. O Charlie H. is hungry and homeless. O Cullen J. must repair the tire on his bike before he can ride it to class.
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A nomadic tribe in Lapland spends all its productive time hunting reindeer. Someof the reindeer meat is kept for consumption and the remainder is sold at a nearbytrading station in return for other goods. It is observed that when the price ofreindeer meat increases the amount the tribe is willing to supply decreases.(a) Sketch this situation in a diagram, with axes ‘reindeer meat’ and ‘all othergoods’. (Hint: locate the production position and sketch the consumptionopportunities line before and after the price change).(b) Determine if reindeer meat is an inferior good to the tribe?(Hint: consider what happens to the consumption position).(c) How does the analysis change if the tribe can hunt and trade fish as well as thereindeer? (Hint: now label the axes ‘reindeer meat’ and ‘fish’ and considerboth the production and consumption decisions