ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 1, Problem 3.6P
(Role of Theory) What good is economic theory if it can't predict the behavior of a specific individual?
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18) please help, thanks
In this week’s discussion, we focus on how the market changes when there are changes to the supply or demand of goods and services.
(a) “This year the weather smiled on us, and we made a good crop,” said a wheat farmer in Manitoba. “But just as we made a good crop, the economic situation changed.” This quotation brings to mind the saying, “If you are a farmer, the weather is always bad.” How would use economic theory to explain that this saying might be true and what would you suggest the farmer do to make the best of the situation despite good or bad weather? (one paragraph)
(b) Along with your textbook reading, review the related videos and article for a background on Canada’s marijuana legalization, then respond to the following questions:Do you see any economic effects not mentioned that might occur in the longer period? What major changes do you see happening with the supply and demand sides of the cannabis market in the long run? (1-2 paragraphs; no mini essay).
[Microeconomic theory]
Explain in a picture what is meant by Corner Solution? Illustration of haram and halal goods, ice cream and hot coffee during the rainy season.
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- 19- : Which economics studies the behavior of economic units, the interaction of consumers and firms? a) international Economics B) Macro economics NS) growth economics D) monetary economics TO) microeconomicsarrow_forwardD03arrow_forwardQuestion 1 (a) The production possibility frontier can be used to illustrate the tradeoffs and opportunity costs of different environmental policies. This question requires you to model the economic effects of these policies in the Australian context. i. Draw a production possibility frontier for Australia with automobiles on the Y-axis and all other goods and services on the X-axis (you do not need to include any numbers on your graph). Discuss how increasing awareness of climate change and action affect the choices made by the Australian economy. ii. Use this PPF to discuss how the introduction of a carbon tax would affect Australia. Clearly state your assumptions while making these conclusions. (b) Bob can make 10 burgers or 5 pizzas in an hour while Jane can make 30 burgers or 6 pizzas. i. Calculate each person's opportunity costs and determine which person has comparative advantage in the production of each item. Discuss whether there are any gains from trade. ii. Draw each…arrow_forward
- Question 6 On which of the following concepts do economists focus their study when explaining how humans behave? emotions money fairness O incentives O justicearrow_forwardQuestion 7 (10 points) Listen Figure 2-7 HOURS WITHOUT SLEEP Refer to Figure 2-7. Taking cause and effect into account, which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep? The less coffee a person drinks per day, the more time he can go without sleep. There is no relationship betwveen how much coffee per day a person drinks and how long he can go without sleep. The more coffee a person drinks per day, the more time he can go without sleep. The more coffee a person drinks per day, the less time he can go without sleep. Question 8 (10 points) V Saved CUPS OF COFFEE PER DAYarrow_forwardConcept: Endowment Effect Behavioral economists attribute some consumer behavior to the endowment effect. Which of the following is an example of the endowment effect? An example of the endowment effect is A. being unwilling to sell a house for a price that is greater than the price you would be willing to pay to buy the house if you didn't already own it. B. taking into account nonmonetary opportunity costs such as the value of your time. C. buying lottery tickets with an expected value that is less than their price. D. being willing to will your descendents a painting upon your death that you otherwise could have sold for a substantial price. E. being unwilling to sell a vase that you already own.arrow_forward
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