Important Note: This assignment requires IRAC Method.

1. Blueknighted Airlines flies round trip from Chicago to Houston several times a day. Steve buys a round-trip ticket one month in advance and pays a price of $200. If Julie buys the ticket one day in advance, and sits next to Steve on the plane, she pays a price of $1,000. Such differences in price are known as (A) Utility maximization (B) Revenue exploitation (C) Price discrimination (D) Antitrust pricing (E) Predatory pricing
2. How have economists traditionally defined "economic growth," and how is that different from "living standards growth"?
3. True or False. Monetarists believe the government should use monetary policy to boost aggregate demand during a recession.
4. True or False. The additional cost to a producer of hiring an additional unit of labor is called the marginal cost.
5. True or False? In you focus on current global economic paradigms, has Adam Smith has been taken out of context from his original text?
6. Is economics value free? Name 2 value decisions might economics make about what is important? e.g. XX is preferred to XX
7. Refer to Figure 10.2. Suppose that the graph initially portrays a competitive market. If the market were to become a monopoly, use the labels in the graph to identify the area of lost consumer surplus. (A) def (B) abd (C) bdfec (D) bcde (E) efgh
8. Refer to Figure 10.2. Suppose that the graph portrays a profit-maximizing monopolist. If the market were to become perfectly competitive, use the labels in the graph to identify the area of monopoly profit that would be transferred to consumers as consumer surplus. (A) def (B) abd (C) bdfec (D) bcde (E) afc
9. When a firm sells the same product to different consumers and charges the consumers different prices, the firm is said to be engaging in (A) Price utilization (B) Price discrimination (C) Price minimization (D) Predatory pricing (E) Price maximization
10. The following are the values for Consumption, Investment, Imports, Exports, and Government spending for the country of Strowsburg in the year 2020 given in billions of dollars: C = $12,000 I = $4,000 G = $3,000 M = $5,000 X = $3,000. Use the following formula: The GDP in billions in Strowsburg is?