(a)
The branch of economics represented by the headline "US
Answer to Problem 4P
The branch of economics represented by the headline "US unemployment rate reaches historic high" is
Explanation of Solution
Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand,
Economics: Economics is a field of study that analyses the cost and benefit of actions by economic units such as households, firms, government, etc. This analysis regarding any action gives the optimal decision.
Macroeconomics: Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand, aggregate supply, inflation, unemployment, etc.
(b)
The branch of economics represented by the headline "General Motors Closes Auto Plant in Wisconsin".
Answer to Problem 4P
The branch of economics represented by the headline "General Motors Closes Auto Plant in Wisconsin" is microeconomics.
Explanation of Solution
Microeconomics is the branch of economics that deals with the economic decision-making of micro units like consumers, firms, producers, labor, etc. The examples of microeconomic decisions are consumer choice, producer's choice, etc. General Motors is an individual company whose one of the plants is shut down. This is a microeconomic decision by a micro unit General Motors. Thus, the branch of economics represented by the headline "General Motors Closes Auto Plant in Wisconsin" is microeconomics.
Economics: Economics is a field of study that analyses the cost and benefit of actions by economic units such as households, firms, government, etc. This analysis regarding any action gives the optimal decision. Microeconomics: Microeconomics is the branch of economics that deals with the economic decision-making of micro units like consumers, firms, producers, labor, etc. The examples of microeconomic decisions are consumer choice, producer's choice, etc.
Macroeconomics: Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand, aggregate supply, inflation, unemployment, etc.
(c)
The branch of economics represented by the headline "OPEC Action Results in a General Increase in Prices".
Answer to Problem 4P
The branch of economics represented by the headline "OPEC Action Results in a General Increase in Prices" is macroeconomics.
Explanation of Solution
Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand, aggregate supply, inflation, unemployment, etc. An OPEC decision leading to increase in general level of prices would be a macroeconomic phenomenon since general price level is a macroeconomic variable. Hence, the branch of economics represented by the headline "OPEC Action Results in a General Increase in Prices" is macroeconomics.
Economics: Economics is a field of study that analyses the cost and benefit of actions by economic units such as households, firms, government, etc. This analysis regarding any action gives the optimal decision. Microeconomics: Microeconomics is the branch of economics that deals with the economic decision-making of micro units like consumers, firms, producers, labor, etc. The examples of microeconomic decisions are consumer choice, producer's choice, etc.
Macroeconomics: Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand, aggregate supply, inflation, unemployment, etc.
(d)
The branch of economics represented by the headline "The Cost of Healthcare Rises for Employees".
Answer to Problem 4P
The branch of economics represented by the headline "The Cost of Healthcare Rises for Employees" is macroeconomics.
Explanation of Solution
Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand, aggregate supply, inflation, unemployment, etc.The rise in the cost of healthcare is a macroeconomic concept since the healthcare is now costly for the economy as a whole.Therefore, the branch of economics represented by the headline "The Cost of Healthcare Rises for Employees" is macroeconomics.
Economics: Economics is a field of study that analyses the cost and benefit of actions by economic units such as households, firms, government, etc. This analysis regarding any action gives the optimal decision. Microeconomics: Microeconomics is the branch of economics that deals with the economic decision-making of micro units like consumers, firms, producers, labor, etc. The examples of microeconomic decisions are consumer choice, producer's choice, etc.
Macroeconomics: Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand, aggregate supply, inflation, unemployment, etc.
(e)
The branch of economics represented by the headline "Lawmakers Worry About the Possibility of a US Recession".
Answer to Problem 4P
The branch of economics represented by the headline "Lawmakers Worry About the Possibility of a US Recession" is macroeconomics.
Explanation of Solution
Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand, aggregate supply, inflation, unemployment, etc.Recession refers to the slowing down of economic activity characterized by falling output, prices and employment. Therefore, an issue of a possible recession would represent macroeconomic situation. Thus, the branch of economics represented by the headline "Lawmakers Worry About the Possibility of a US Recession" is macroeconomics.
Economics: Economics is a field of study that analyses the cost and benefit of actions by economic units such as households, firms, government, etc. This analysis regarding any action gives the optimal decision. Microeconomics: Microeconomics is the branch of economics that deals with the economic decision-making of micro units like consumers, firms, producers, labor, etc. The examples of microeconomic decisions are consumer choice, producer's choice, etc.
Macroeconomics: Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand, aggregate supply, inflation, unemployment, etc.
Recession: Recession refers to the slowing down of economic activity characterized by falling output, prices and employment. A recession is preceded by boom and followed by recovery. It is a part of the business cycle: Boom ( Recession( Recovery( Boom.
(f)
The branch of economics represented by the headline "Los Angeles Dodgers Make Pitcher Highest Paid Ballplayer".
Answer to Problem 4P
The branch of economics represented by the headline "Los Angeles Dodgers Make Pitcher Highest Paid Ballplayer" is macroeconomics.
Explanation of Solution
Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand, aggregate supply, inflation, unemployment, etc. If Pitcher is declared the highest paid ballplayer, it is a national level title given to him. Thus, the branch of economics represented by the headline "Los Angeles Dodgers Make Pitcher Highest Paid Ballplayer" is macroeconomics.
Economics: Economics is a field of study that analyses the cost and benefit of actions by economic units such as households, firms, government, etc. This analysis regarding any action gives the optimal decision. Microeconomics: Microeconomics is the branch of economics that deals with the economic decision-making of micro units like consumers, firms, producers, labor, etc. The examples of microeconomic decisions are consumer choice, producer's choice, etc.
Macroeconomics: Macroeconomics is the branch of economics that deals with the economics of the aggregative variables like aggregate demand, aggregate supply, inflation, unemployment, etc.
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Chapter 1 Solutions
EBK EXPLORING MICROECONOMICS
- Assume the United States is a large consumer of steel, able to influence the world price. DUS and SUS denote its demand and supply schedules in Figure 1. The overall (United States plus world) supply schedule of steel is denoted by SUS.+W. Figure 1 Import Tariff Levied by a Large Country Answer all questions (a-f) by referring to Figure 1 above. a) Calculate the free trade market equilibrium price, domestic consumption, and volumE Answer all questions (a-f) by referring to Figure 1 above. a) Calculate the free trade market equilibrium price, domestic consumption, and volume of steel imports by the US. [5 marks] b) Suppose the United States imposes a tariff (t) of $100 on each ton of steel imported. With the tariff, calculate the price of steel and the volume of steel imports by the US. [5 marks] c) Of the $100 tariff, how much is passed on to the US consumer via a higher price, and how much is borne by the foreign exporter? [5 marks] d) Calculate the tariff's deadweight welfare loss to…arrow_forward1. A doctor quits his job, which pays $77,000 per annum, to open a non-governmental organization (NGO) to serve the needs of orphans. His annual expenses for the NGO amounts to $62,700 for food and daily supplies, $9,400 for maintenance, and $1,800 for books. What is his opportunity cost of opening the NGO? (Show working) 2. During the COVID-19 pandemic, hospitals worldwide faced severe resource constraints, including: a. Limited ICU beds b. Shortage of ventilators c. Insufficient doctors and nurses d. Lack of vaccines in early 2021 Governments and hospitals had to make critical decisions about who receives treatment first and how to allocate limited resources efficiently. In no more than 150 words and using core economic concepts of scarcity, choice and opportunity cost, how would you help your government make these critical decisions?arrow_forwardWhat is the argument about necessary evil?arrow_forward
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