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i. Classify the following issues as relating to microeconomics or macroeconomics. a) a family's decision about how much income to save b) the effect of government regulations on automobile emissions c) the impact of higher national savings on economic growth

i. Classify the following issues as relating to microeconomics or macroeconomics. a) a family's decision about how much income to save b) the effect of government regulations on automobile emissions c) the impact of higher national savings on economic growth

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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i. Classify the following issues as relating to microeconomics or macroeconomics. a) a family's decision about how much income to save b) the effect of government regulations on automobile emissions c) the impact of higher national savings on economic growth d) a firm's decision about how many workers to hire ii. Classify each of the following statements as positive or normative. a) Society faces a short-run trade-off between inflation and unemployment. b) A reduction in the rate of money growth will reduce the rate of inflation. c) Society ought to require welfare recipients to look for jobs. d) Lower tax ates encourage more work and more saving. Page 1 of 3 Suppose that at the beginning of the year the Accountant of the School of Business defines and outlines what he considers to be his priority expenditure ii. areas as follows. item Cost(Ghs) Reference Textbooks 100,000 Office Spaces for lecturers 50,000 Refurbishment of School Auditorium 50,000 Projectors for Lecture Halls 40,000 Landscaping around School buildings 60,000 Upgrading of School Library 100,000 School Bus 150,000 Stationery 20,000 a) What does this list represent? What is the releva of this the Accountant? ) Assuming the Accountant receives a vote of Ghs200,000, which areas must engage his attention? What would be the true cost of these expenditures? c) What should the Accountant do if he is given a vote of only Ghs150,000? What are che consequences of such a decision?
Transcribed Image Text:i. Classify the following issues as relating to microeconomics or macroeconomics. a) a family's decision about how much income to save b) the effect of government regulations on automobile emissions c) the impact of higher national savings on economic growth d) a firm's decision about how many workers to hire ii. Classify each of the following statements as positive or normative. a) Society faces a short-run trade-off between inflation and unemployment. b) A reduction in the rate of money growth will reduce the rate of inflation. c) Society ought to require welfare recipients to look for jobs. d) Lower tax ates encourage more work and more saving. Page 1 of 3 Suppose that at the beginning of the year the Accountant of the School of Business defines and outlines what he considers to be his priority expenditure ii. areas as follows. item Cost(Ghs) Reference Textbooks 100,000 Office Spaces for lecturers 50,000 Refurbishment of School Auditorium 50,000 Projectors for Lecture Halls 40,000 Landscaping around School buildings 60,000 Upgrading of School Library 100,000 School Bus 150,000 Stationery 20,000 a) What does this list represent? What is the releva of this the Accountant? ) Assuming the Accountant receives a vote of Ghs200,000, which areas must engage his attention? What would be the true cost of these expenditures? c) What should the Accountant do if he is given a vote of only Ghs150,000? What are che consequences of such a decision?
UESTION TWo The following are some statements. Analyze and explain the economic thinking behind nem a) Mr. Aryee is considering whether to continue his education to obtain a post- graduate qualification or to enter the job market after his undergraduate studies. Page 2 of 3 b) Madam Yawa plans to spend Ghs 10 to buy 20 balls of kenkey to entertain some guests she is to receive at the weekend. When enters the market she realizes that the per unit price of kenkey is 40 Gh p. c) In a) above what do you consider to be main factors that Mr. Aryee would use into deciding whether to continue his education or entering the job market right away? Mr. Aryee and Mr. Smith receive the same pay packet on a job in a month and are ach faced with budgeting for the following- food, rent, clothing, entertainment and ansportation. If Mr. Aryee decides to arrange these in order of food, clothing rent, ntertainment and transportation but Mr. Smith finds food, rent, clothing, entertainment nd transportation as most feasible arrangement of his wants, what economic concept nderlines these decisions? Explain your answer. i. The following are some given scenarios. a) In the budget presented by the government, far reaching tax rebates are provided to all classes of tax payers. A researcher therefore conducts examine whether these tax reductions have led to a change in the consumption patterns of various social classes in the country. What kind of study would this fall under? Explain your answer. a survey to b) It is an established fact in economics that for goods which are described as inferior goods, when incomes of consumers increase, consumers tend to reduce their consumption of such goods and rather patronize goods which would normally provide higher satisfaction .Suppose in Ghana, gari is seen as an inferior good and incomes of low income earners rise substantially as result of the introduction of a new incomes policy. If a researcher decides to undertake a study to verify the general preposition that as incomes rise, the consumption of inferior goods falls, which type of economic study and what analysis is this? Justify your answer. c) Identify the type(s) of economic activities which are undertaken within the household, backing your answers with practical examples.
Transcribed Image Text:UESTION TWo The following are some statements. Analyze and explain the economic thinking behind nem a) Mr. Aryee is considering whether to continue his education to obtain a post- graduate qualification or to enter the job market after his undergraduate studies. Page 2 of 3 b) Madam Yawa plans to spend Ghs 10 to buy 20 balls of kenkey to entertain some guests she is to receive at the weekend. When enters the market she realizes that the per unit price of kenkey is 40 Gh p. c) In a) above what do you consider to be main factors that Mr. Aryee would use into deciding whether to continue his education or entering the job market right away? Mr. Aryee and Mr. Smith receive the same pay packet on a job in a month and are ach faced with budgeting for the following- food, rent, clothing, entertainment and ansportation. If Mr. Aryee decides to arrange these in order of food, clothing rent, ntertainment and transportation but Mr. Smith finds food, rent, clothing, entertainment nd transportation as most feasible arrangement of his wants, what economic concept nderlines these decisions? Explain your answer. i. The following are some given scenarios. a) In the budget presented by the government, far reaching tax rebates are provided to all classes of tax payers. A researcher therefore conducts examine whether these tax reductions have led to a change in the consumption patterns of various social classes in the country. What kind of study would this fall under? Explain your answer. a survey to b) It is an established fact in economics that for goods which are described as inferior goods, when incomes of consumers increase, consumers tend to reduce their consumption of such goods and rather patronize goods which would normally provide higher satisfaction .Suppose in Ghana, gari is seen as an inferior good and incomes of low income earners rise substantially as result of the introduction of a new incomes policy. If a researcher decides to undertake a study to verify the general preposition that as incomes rise, the consumption of inferior goods falls, which type of economic study and what analysis is this? Justify your answer. c) Identify the type(s) of economic activities which are undertaken within the household, backing your answers with practical examples.
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