Homework 3 - William Candido

14. What assumption is important in using economic model to make predicitons? a) the law of demand b) the rationality assumption c) ceteris paribus/ other things being equal d)evryone being a price taker

Chapter 12 List and discuss the steps in the consumer decision making process. provide an example of each step. List and discuss the three steps in the three perspectives on decision making Chapter 13 Describe the value equation and provide an example. Discuss what evaluative criteria is and what determinant criteria is provide an example of each, Describe 2 factors affect evaluative criteria. Describe the difference between compensatory rules an non-compensatory rules.

Question 1Define the difference between following terms :i) Microeconomics versus Macroeconomicsii) Normative statements versus positive statementsiii) Change in Supply versus change in quantity suppliediv) Law of Demand versus law of supplyv) Determinants of Demand versus determinants of Supplyvi) Opportunity cost versus Marginal costvii) Price Elasticity of Demand versus Cross-Price Elasticity of Demand.viii) Perfect competition versus competitive marketsix) Invisible hand theory versus price controlsx) ‘Free lunch’ versus ‘there’s no such thing as free lunch’xi) ‘How people make decisions’ versus ‘How people interact’ Note: kindly answer the all above terms with example if you want upvote for your answer thanks

Many people struggle with the idea that economics has any place in a discussion of relevant environmental issues. The unfortunate reality, however, is that policy making surrounding these issues is often influenced by budgetary factors. Environmental/ecological/sustainability economics can help in making sure our natural resources are appropriately valued in these budget analyses. For each of the following methods used to value natural resources, offer a brief explanation of how they work and in what context they might be used. • Cost of illness method • Replacement cost method • Defensive expenditures approach • Contingent valuation

Assignment 2:  Problem Solving When faced with a problem, what do you do to solve it? This assignment asks you to apply a six-step to problem solving process to a specific problem scenario. You will write a paper that presents a synthesis of your ideas about solving the problem using this systematic approach. As Voltaire said, “No problem can withstand the assault of sustained thinking.” Choose one (1) of the problem scenarios as a topic choice for your paper (Note: Your professor must approve your topic choice before you begin work on the assignment.) Scenario 1: You have worked at your company for eleven (11) years. You have returned to college to earn a Bachelor’s degree in order to increase your chances for a promotion. You are nearly finished with your degree, when a supervisor’s position in a competing company becomes available in another state. The start date is in two (2) weeks, during your final exam period for your courses. The position offers…

Attempts 9. Exercise 3.9 The Sydney Transportation Company operates an urban bus system in New South Wales, Australia. Economic analysis performed by the firm indicates that two major factors influence the demand for its services: fare levels and downtown parking rates. Table 1 presents information available from 2005 operations. Forecasts of future fares and hourly parking rates are presented in Table 2. Table 1 Average Daily Transit Riders Average Downtown Round-Trip Fare Parking Rate Year 2006 2007 Average / 1 (2005) 5,000 (Dollars) 1.00 1.25 (Dollars) 1.00 Table 2 Round-Trip Fare Average Parking Rates (Dollars) 2.50 2.50 (Dollars) 1.50 Sydney's economists supplied the following information so that the firm can estimate ridership. Based on past experience, the coefficient of cross elasticity between bus ridership and downtown parking rates is estimated at 0.2, given a fare of $1.00 per round trip. This is not expected to change for a fare increase to $1.25. The price elasticity of…

7. Models: Apply the supply-and-demand model to the following markets. In each case, state the key endogenous variables in the market as well as some important exogenous variables or parameters. Also, express each model as a system of mathematical equations. As an example, Q = F(P, X) might be the demand curve in the computer market, where X captures some exogenous variables like the availability of the iPad or computer games. How many equations are there within each example? How many unknowns? 1. The computer market. 2. The market for your favorite music. 3. The market for a particular currency, such as the dollar, the yen, or the euro. (Hint: This last example suggests an important point about "exogenous variables": what is exogenous in one model, as in a narrow study of the supply and demand for dollars, may be endogenous in a richer model-like a study of the entire U.S. macroeconomy.)

QUESTION 39 39. Economic rationality or optimization means that people should compare the consequences of alternative actions or choices and select the one that maximizes net benefits (net of costs). is not an acceptable approach to life according to many philosophers, because they claim that some things, such as human life, should not be subject to this kind of calculation of costs and benefits. does not apply to choices involving human life. all of the above. only (a) and (b) are correct. OO C

1. Distinguish between Microeconomics and Macroeconomics with their obiectives

Question 1   Classify the following as macroeconomic or Microeconomics and provide a justification for your choice .   1) The government issued stimulus cheques to citizens to offset effects to covid-19 .   2) Susan's decision about how much income to save .   3) The decision by McDonald's to hire fewer workers because of an increase in the minimum wage .   4) Airline projects a drastic reduction in international travel for this quarter .This might result in the layoff of workers.    Question 2   A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000.The cost of capital is $3,000 and it is fixed, which means that it does not vary with output.The company is currently producing 24 snowboards .The company's cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st  snowboard .   i) Should the company produce and sell it? (Yes or No). Explain    ii) What core principles should be considered in the…

Question 18: Economic theory attempts to predict the outcomes and impacts of a behavior with an assumed set of conditions.   A True B False

3. MARGINAL ANALYSIS. This example problem goes over the degree of comfort experienced at different levels of clean water. The different peso value amounts are shown for every 20% increase in clean water. We want to find the optimum amount of clean water that we should have in this area, and it is important to remember that there is an optimal amount of pollution. Having 100% clean water is probably never going to be the solution. As we would expect, the more clean water we have in our economy, the higher the benefit we receive (we prefer clean water over dirty water). However, as we produce (or clean) more of the clean water we also incur a cost. As more clean water is present, the higher our costs. Note that benefits here is the same as utility. % of Clean Water Total Benefits Total Cost 0% 20% 50 45 40% 100 155 85 60% 90 80% 160 120 100% 180 155 Find the MC and MB. At what % of Clean Water do we have the best option to be adopted?

Problem: An art museum is opening a new exhibit soon and wants to know what percentage of museum attendees will return to see the new exhibit. During two afternoons, a Thursday and a Saturday, they ask randomly-selected people exiting the museum, "Would you consider returning for our exciting new exhibit opening in two weeks?" What was good about this survey? What could be improved?

The current Covid-19 pandemic has affected various economic sectors around the world. Choose two (2) examples of consumer goods and services in the output market that has a clear impact due to the pandemic. The examples of the goods and services could be either from the buyers’ side or the sellers’ perspective. Illustrate and explain your answers with the help of diagrams (pre-pandemic and during pandemic).

(1). Which of the following is the best definition of economics? A) the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided B) the study of how consumers spend their income C) the study of how business firms decide what inputs to hire and what outputs to produce D) the study of how the federal government allocates tax dollars

10. Normative and positive statements The following table contains statements that provide some analysis of policies that address breast cancer. Categorize each of these statements as either positive or normative. Statement Breast cancer is the fifth most common cause of cancer death. For women aged 60 to 69, breast cancer screening significantly reduces breast cancer mortality. Doctors should encourage women aged 60 to 69 to be screened for breast cancer. The government should force doctors to encourage women aged 60 to 69 to be screened for breast cancer. Positive O O O Normative O O O

18. Why could experiments be used to solve the endogeneity problem?       [answer in no more than 50 words]

Many city governments provide transportation subsidies in the form of lowering the cost perride on public transit (e.g. buses or trains) to lower traffic congestion. According to the modelin this class, which of the following statements may be true about this type of transportationsubsidy? Do not worry about the underlying facts of each statement, only whether it makeseconomic sense given our model. (Select one or more.)(a) Subsidies decrease the number of drivers because transit and driving are substitutes.(b) Subsidies decrease the number of drivers because transit and driving are complements.(c) A subsidy is identical to a binding in-kind transfer.(d) The equivalent variation of a subsidy is greater than the cost of a bus/train trip.(e) The equivalent variation of a subsidy is less than the same size lump-sum transfer.(f) We can’t compute equivalent variation since congestion is an externality.(g) Transportation subsidies target low-wealth people because transit is an inferior…

I. Theoretical Analysis 1. Each individual student or team (two students max) must find an article from the New York Times, The Economist, The Wall Street Journal, or The Financial Times (or a pre-approved alternate reputable news source) that addresses a concept we have covered in class and interests you. You will need to do a theoretical analysis for a news article, so choose one that is sufficiently in-depth and has some material to discuss. 2. Each team will have to turn in a typed analysis of their article (double-spaced, four pages maximum). You must also turn in a copy (not just a link) of the article you have chosen. 3. Each analysis should include at a minimum: i) One paragraph summarizing the article; Be brief! ii) One paragraph relating the article to theories we have discussed in class; Please draw relevant graphs or write down equations here. iii) One paragraph for the interpretation; Provide your explanation if the macroeconomic theory does not fit into your article. Is…

2) This MCQ from MICROECONOMICS course.

Scenario: Alex, an entrepreneur, operates a called business "Fitness for Life", providing physical conditioning services (strength, balance, and flexibility training) in his community. Which of the following are the THREE factors that are most likely to have positive impacts on his business? Select ONLY THREE from the given factors. O People in his community have become more health-conscious. O The average education level of the population in his community is low. The average age of the population in his community is high. The local school district has been running a publicity campaign emphasizing the value of exercise. The level of disposable income in his community is low. O The level of unemployment in his community is high. O The mayor of the city where Alex operates is an amateur marathon runner and has stressed the need for "going green" in the community. DA chiropractor and two independent physical therapists are located in his community. O O O O

Question 5 Read the following scenario and answer the questions that follow. Scenario 2 A recent research article entitled "Milk Manic" made headlines in South Africa. The article explains the significant health benefits of consuming one glass of milk per day. In only seven days you will become stronger and smarter, but milk supercharges your immune system. The scientist further found that consuming a glass of milk a day as a cure for high blood pressure, anxiety and insomnia. For scenario 2, answer the following questions: By the aid of a graph, illustrate and explain how the research article will affect the equilibrium price and quantity in the milk market. The impact of price changes in related products (substitutes and complements) can lead to the same outcome as the news article-the same result as (5.1). 5.2.1. To reach the same result as (5.1). Specify the required price change for 5.1. 5.2. Cremora. Justify your answer. 5.2.2. To reach the same result as (5.1). Specify the…

If your overall grade point average is 2.0 and you earn a 2.5 GPA this semester, your overall grade point average will increase. This situation demonstrates the general principle that if average value is greater than marginal value, marginal value will increase. if average value is greater than total value, total value will increase. if marginal value is greater than average value, average value will increase. if marginal value is greater than total value, total value will increase.

Identify each of the following topics as being part of microeconomics or macroeconomics: the effect of a change in the price of Coke on the purchase of Pepsi. (a) microeconomics (b) macroeconomics

9)What does it mean to make decisions at the margin? * a)That you should make all-or-nothing choices and ignore additional benefits or costs b)That you should make your decision based on what people at the outer fringe or margin of society tell you c)That you can do best on your exams by reading margin materials of your textbook d)That you weigh additional benefits of a change against the additional costs of a change with respect to current conditions