Questions and Answers of Foundations Of Microeconomics

2. The table provides data from the CIA World Fact Book about seven economies. If the economy in which you live isn’t in the table, add the data from the CIA World Fact Book Web site.MyEconLab
1. Mark Zuckerberg’s big idea: The “next 5 billion”Facebook founder Mark Zuckerberg wants to make it so that anyone, anywhere, can get online. To achieve this goal, he has created
9. On a graph of the circular flow model, indicate in which real or money flow each entry in List 2 belongs.Use the following information to work Problems 10 and 11.Poor India makes millionaires at
6. In the African nation of Senegal, to enroll in school a child needs a birth certificate that costs $25. This price is several weeks’ income for many families. Explain how this requirement is
• Why might Boeing’s decisions in making the Dreamliner be in the social interest?
would occur if Boeing manufactured all the components of the Dreamliner at its own factories in the United States.
• Describe some of the changes in what, how, and for whom, that
6. Define the factor of production called capital. Give three examples of capital, different from those in the chapter. Distinguish between the factor of production capital and financial capital.
4. Which factor of production earns the highest percentage of total U.S. income?Define that factor of production. What is the income earned by this factor of production called?
3. Explain which of the following items are not factors of production:• Vans used by a baker to deliver bread• 1,000 shares of Amazon.com stock• Undiscovered oil in the Arctic Ocean
2. Explain which of the following items are not capital goods:• An auto assembly line • A shopping mall • A golf ball
1. Explain which of the following items are not consumption goods and services:• A chocolate bar • A ski lift • A golf ball
Why might so many people in Peru be entrepreneurs?
What microloans miss The 2006 Nobel Peace Prize winner Muhammad Yunus has said that “all people are entrepreneurs” and that microloans will pull poor people out of poverty. Only 14 percent of
4. In the United States, which factor of production earned the largest share of income in 2011 and what percentage did it earn?
3. Distinguish between the functional distribution of income and the personal distribution of income.
2. Name the four factors of production and the incomes they earn.
1. What are the types of goods and services produced? Give an example of each (different from those in the chapter) and distinguish between them.
5. Table 5 provides data on the price of hot chocolate, the temperature, and the number of cups a week. Draw graphs to show the relationship between• The price and the number of cups of hot
2. Draw a time-series graph of the quantity of music videos sold. Say in which year or years the quantity sold (a) was highest, (b) was lowest, (c) decreased the most, and (d) decreased the least. If
• The price and the number of rides, when the temperature is 70°F.• The number of rides and the temperature, when the price is $15 a ride.Instructor Assignable Problems Use the information in
4. Table 3 provides data on the price of a balloon ride, the temperature, and the number of rides a day. Draw graphs to show the relationship between
3. Is the relationship between x and y in Table 2 positive or negative? Calculate the slope of the relationship when x equals 2 and when x equals 4. How does the slope change as the value of x
2. Draw a time-series graph of the quantity of compact discs sold. Say in which year or years the quantity sold (a) was highest, (b) was lowest, (c) increased the most, and (d) decreased the most. If
1. Draw a scatter diagram to show the relationship between the quantities sold of compact discs and music videos. Describe the relationship.
The spreadsheet in Table 1 provides data on the U.S. economy: Column A is the year; the other columns are quantities sold in millions per year of compact discs(column B), music videos (column C), and
3. Amir is accepted to do a bachelor’s degree at university but he can’t afford the tuition fee, so he decided to take a full-time job. What economic concept did Amir use to make this decision?
a. Identify the economic decision-makers and the decisions made in self-interest.
2. From brewer to bio-tech entrepreneur Kiran Mazumdar-Shaw trained as a master brewer and then used her skills to create a pharmaceuticals business. She employed uneducated workers and paid good
b. In whose self-interest is this cash injection: Vincent Tan, a Malaysian billionaire, or some other person? Is this cash injection in the social interest?Explain your answer.
a. With a substantial cash injection, would Cardiff City FC still face a scarcity problem? Explain your answer.
1. Cardiff City FC gets more cash Vincent Tan, the owner of Cardiff City FC, says a further £35m cash injection will be made, which will include £10m to pay off the historical debt and a
Obama’s revision of auto-emission and fuel-economy standards will require automakers to boost fuel economy to 35.5 miles per gallon by 2016, notching up 5% each year from 2012, to limit the amount
8. Provide two examples of economics being used as a tool by each of a student, a business, and a government. Classify your examples as dealing with microeconomic topics and macroeconomic topics.Use
2. Think about the following news items and label each as involving a what, how, or for whom question:• Today, most stores use computers to keep their inventory records, whereas 20 years ago most
1. Which of the following are components of the opportunity cost of being a full-time student? The cost of• Tuition and books• Residence and a meal plan• A subscription to the New Yorker
what is free and what is scarce? Explain your answer.
10. With tickets free and the show to be held in a 1,500-seat Detroit theater,
8. Pam, Pru, and Pat are deciding how they will celebrate the New Year. Pam prefers to take a cruise, is happy to go to Hawaii, but does not want to go skiing. Pru prefers to go skiing, is happy to
7. What is the social interest? Distinguish it from self-interest. In your answer give an example of self-interest and an example of social interest.
The Social Network had world-wide box office receipts of $225 million. The movie had a production budget of about $70 million and additional marketing costs of about $50 million. Creating a
2. Label each entry in List 1 as dealing with a microeconomic topic or a macroeconomic topic. Explain your answer.Use the following information to work Problems 3 to 6.
4. Did Kate make her decision on the margin?
3 Did businesses and consumers act in their self-interest or the social interest?
2. In May 2011, businesses cut hiring because the higher price of gas pushed up costs and higher food prices forced consumers to cut spending.Source: CNNMoney, June 4, 2011
5. How does Facebook influence self-interest and the social interest?
• When do choices made in the pursuit of self-interest also promote the social interest?
• How do choices end up determining what, how, and for whom goods and services get produced?

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