ECON1000 - Principles of Economics - Open Campus Uwi

Question 1 Classify the following as microeconomics or macroeconomics and provide a justification for your choice a) The decision by McDonald's to hire fewer workers because of an increase in the minimum wage b) The effect of government regulations on car emissions c) The impact of a decrease in national savings on a country's economic growth d) The central bank announces that it is increasing the discount rate in an effort to slow the rate of inflation

Question 2 Most governments have a policy of not negotiating with kidnappers, but relatives of kidnap victims do not have the same policy a) which core principle is represented in this scenario (if any)? b) Explanation Question 3 Implementation and enforcement of the seat belt law has resulted in an increase in the number of accidents a) Which core principle is represented in this scenario (if any)? b) Explanation

Question 4 Your marginal benefit from eating candy bars is shown in the table below:

\f# Marginal Benefit Candy (MB) bars 0 2 4 3 2 4 1