merged

More documents

Recommendations

Info

Y Point X Y A 0 1 B 3 3 C 6 5 D 9 7 E 12 9 10 - 9- 8- 7- 6- 5- 4- 3- 2- 1- 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Answers for Chapter 1 Fill-in-the-blanks: 1. Scarcity 10. Opportunity 2. Economics 11. Positive 3. Resources 12. Normative 4. Labor 13. Macroeconomics 5. Human capital 14. Microeconomics 6. Land 15. Graphs 7. Capital 16. direct 8. Entrepreneurship 17. slope 9. incentive Multiple Choice: 1. a. 7. c. 13. b. 2. c. 8. c. 14. d. 3. a. 9. b. 15. b. 4. d. 10. c. 16. a. 5. b. 11. c. 17. d. 6. a. 12. c. 18. b. FOR REVIEW ONLY - NOT FOR DISTRIBUTION X 1 - 17 Scarcity and Choices
Problems: 1. The four categories of resources are: (1) Labor – the physical and mental efforts that people contribute to production. (2) Land – the naturally occurring resources. (3) Capital – produced goods that are used in the production of other goods. (4) Entrepreneurship – the special skill involved in organizing labor, land, and capital for production. 2. Entrepreneurs organize labor, land, and capital for production. Entrepreneurs start new businesses, develop new production techniques, and introduce new products. Entrepreneurs are generally motivated by the goal of profit-maximization. Entrepreneurs also bear the risk of loss. Profits (and losses) direct entrepreneurs and the resources that they control into (and out of) different types of production. 3. Most resource owners have a self-interest to generate maximum profit from the use of their resources. In a competitive market, this pursuit of profit-maximization will lead the resource owners toward two actions that serve the best interest of society; a. Resource owners will direct their resources to the use that is most highly valued by consumers. b. Resource owners will use their resources as efficiently as possible. 4. a. and b. Y 10 - 9- E 8- 7- . D 6- 5- . C 4- 3- . B 2- 1- . A 0 0 1 2 3 4 5 6 7 8 9 10 11 12 c. Slope = (9 – 1) ÷ (12 – 0) = 8 ÷ 12 = Answer to Think Like an Economist: If the government passes a law that makes the punishment for armed robbery the same as the punishment for murder, there will be fewer liquor store hold-ups. However, armed robbers who continue to rob liquor stores will be more likely to murder their victims since the punishment if they murder their victims is no greater than if they don’t murder their victims, and the likelihood of being caught and punished is less if no witnesses are left behind. FOR REVIEW ONLY - NOT FOR DISTRIBUTION . X Scarcity and Choices 1 - 18
Page 2 and 3: PRINCIPLES OF ECONOMICS JEFF HOLT S
Page 4 and 5: Principles of Economics, 6th Editio
Page 6 and 7: 16. Study Guide for Chapter 7 17. C
Page 8 and 9: 11. Appendix: Book Review - “The
Page 10 and 11: 20. Appendix: The NCAA Cartel 21. S
Page 12 and 13: Introduction: A Brief History of U.
Page 14 and 15: In the twentieth century, per capit
Page 16 and 17: Appendix: The 35 Largest National E
Page 18 and 19: Multiple Choice: ___ 1. The Jamesto
Page 20 and 21: 2. Describe the economic cost of th
Page 22 and 23: Chapter 1 Scarcity and Choices The
Page 24 and 25: Example 5B: At the end of 1982, the
Page 26 and 27: Example 11: When Cindy quits her jo
Page 28 and 29: consequences may result in failure
Page 30 and 31: An upward sloping curve (as in Exam
Page 32 and 33: In making decisions, humans tend to
Page 34 and 35: 5. ______________________ _________
Page 36 and 37: ___ 13. If the value of one variabl
Page 40 and 41: Chapter 2 Trade and Economic System
Page 42 and 43: Example 4B: The following quantitie
Page 44 and 45: 1. An increase in the quantity of r
Page 46 and 47: 3. For whom to produce? This is det
Page 48 and 49: The graph below illustrates the shi
Page 50 and 51: The two primary economic systems ar
Page 52 and 53: ___ 12. The capitalist vision sees
Page 54 and 55: ___ 25. According to the book “Ca
Page 56 and 57: Chapter 3 Demand, Supply, and Equil
Page 58 and 59: . For inferior goods, income and de
Page 60 and 61: The same information can be placed
Page 62 and 63: Not only does a free market elimina
Page 64 and 65: $7 - 6 - 5 - S 3 S1 S 2 Price 4 - 3
Page 66 and 67: Example 17: The graph below illustr
Page 68 and 69: Questions for Chapter 3 Fill-in-the
Page 70 and 71: ___ 12. Assuming a market originall
Page 72 and 73: $8 - 7 - 6 - 5 - Price 4 - 3 - 2 -
Page 74 and 75: Chapter 4 Inflation and Unemploymen
Page 76 and 77: Computing the Rate of Inflation The
Page 78 and 79: Full Employment Though unemployment
Page 80 and 81: 3. Cyclical unemployment - due to d
Page 82 and 83: During the Great Depression, the ec
Page 84 and 85: Appendix: Think Like an Economist -
Page 86 and 87: Answer questions 8. and 9. based on
Page 88 and 89:
___ 25. The extension of unemployme
Page 90 and 91:
Chapter 5 Measuring Total Output: G
Page 92 and 93:
5. Leisure. Leisure time is by defi
Page 94 and 95:
The U.S. is a high per capita GDP c
Page 96 and 97:
Example 17: In “An International
Page 98 and 99:
The simple circular flow diagram be
Page 100 and 101:
___ 3. Which of the following would
Page 102 and 103:
2. Explain what nonproduction trans
Page 104 and 105:
Chapter 6 The Aggregate Market The
Page 106 and 107:
Example 2C: Assume the same facts a
Page 108 and 109:
Example 5B: The price of crude oil
Page 110 and 111:
Price Level Real GDP SRAS AD 2 AD 1
Page 112 and 113:
Appendix: Why the Aggregate Demand
Page 114 and 115:
___ 3. DEF Company can invest in ne
Page 116 and 117:
2. List and explain the two factors
Page 118 and 119:
Chapter 7 Classical Economic Theory
Page 120 and 121:
Notice that the investment demand c
Page 122 and 123:
Long-Run Equilibrium If Real GDP is
Page 124 and 125:
Example 6B: When the economy is in
Page 126 and 127:
Laissez-faire If the economy is sel
Page 128 and 129:
___ 5. According to Say’s Law: a.
Page 130 and 131:
3. On the graph below, draw an aggr
Page 132 and 133:
Chapter 8 Keynesian Economic Theory
Page 134 and 135:
Example 2B: The graph below illustr
Page 136 and 137:
Example 5: Assume that the table be
Page 138 and 139:
Notice on the graph on the previous
Page 140 and 141:
According to Keynesian theory, a ch
Page 142 and 143:
“The General Theory” also inclu
Page 144 and 145:
___ 8. If the consumption function
Page 146 and 147:
3. If the MPC is .667, and investme
Page 148 and 149:
Chapter 9 Fiscal Policy The basic e
Page 150 and 151:
Keynesian Fiscal Policy Theory and
Page 152 and 153:
Example 5A: The federal government
Page 154 and 155:
The Laffer Curve What will happen t
Page 156 and 157:
Appendix: The Importance of Incenti
Page 158 and 159:
___ 4. A decrease in government exp
Page 160 and 161:
2. Explain what automatic stabilize
Page 162 and 163:
Chapter 10 Money, Money Creation, a
Page 164 and 165:
Example 4B: The castaways on Gillig
Page 166 and 167:
Looking at the balance sheet below,
Page 168 and 169:
Demand-side One-shot Inflation Exam
Page 170 and 171:
4. Inflation increases uncertainty
Page 172 and 173:
life; it came into existence not by
Page 174 and 175:
calculated by using the potential d
Page 176 and 177:
___ 12. If the required-reserve rat
Page 178 and 179:
4. Referring to the balance sheet f
Page 180 and 181:
Chapter 11 The Federal Reserve Syst
Page 182 and 183:
5. After Bank X sells the $300,000
Page 184 and 185:
Low Mortgage Interest Rates Mortgag
Page 186 and 187:
Relaxed Standards for Mortgage Loan
Page 188 and 189:
The Bursting of the Housing Bubble
Page 190 and 191:
On February 17, 2009, the federal g
Page 192 and 193:
Fed policies caused short-term inte
Page 194 and 195:
___ 10. The Fed’s most important
Page 196 and 197:
___ 25. In response to the recessio
Page 198 and 199:
Chapter 12 Monetary Policy The basi
Page 200 and 201:
2. A change in aggregate demand (AD
Page 202 and 203:
Monetarist Transmission Mechanism C
Page 204 and 205:
3. Borrowers do not have to seek ou
Page 206 and 207:
Appendix: Book Review - “The Age
Page 208 and 209:
Questions for Chapter 12 Fill-in-th
Page 210 and 211:
___ 16. The primary source of incom
Page 212 and 213:
7. According to Alan Greenspan, wha
Page 214 and 215:
Chapter 13 Taxes, Deficits, and the
Page 216 and 217:
Example 5: In 2015, Taxpayer A had
Page 218 and 219:
of $5 and a quantity of 10 units. T
Page 220 and 221:
The complexity of the tax law also
Page 222 and 223:
the current government spending and
Page 224 and 225:
cut of 1964. The top rate was lower
Page 226 and 227:
___ 6. Federal excise taxes: a. are
Page 228 and 229:
3. How would eliminating the loopho
Page 230 and 231:
Chapter 14 Economic Growth The basi
Page 232 and 233:
2. Labor. Labor can contribute to e
Page 234 and 235:
estricting international trade (e.g
Page 236 and 237:
An improvement in technology (e.g.
Page 238 and 239:
The table below shows the economic
Page 240 and 241:
will increase both Real GDP and per
Page 242 and 243:
___ 8. Which of the following is co
Page 244 and 245:
___ 26. The opinion that economic g
Page 246 and 247:
Chapter 15 Less Developed Countries
Page 248 and 249:
Example 8: Countries A, B, C, and D
Page 250 and 251:
Obstacles to Economic Development f
Page 252 and 253:
c. Restrictions on international tr
Page 254 and 255:
Appendix: Book Review - “The Powe
Page 256 and 257:
Example 25: In Brazil, about half t
Page 258 and 259:
Study Guide for Chapter 15 Chapter
Page 260 and 261:
___ 13. Among the counterproductive
Page 262 and 263:
4. List four ways that governments
Page 264 and 265:
Chapter 16 International Trade The
Page 266 and 267:
Other Benefits of Free Internationa
Page 268 and 269:
Example 6: The graph below illustra
Page 270 and 271:
competitive disadvantage. But dumpi
Page 272 and 273:
is only 25% as productive as before
Page 274 and 275:
Smith was skeptical of government a
Page 276 and 277:
___ 4. For Country X, what is the o
Page 278 and 279:
___ 18. Frédéric Bastiat’s “P
Page 280 and 281:
4. On the graph below: (1) What is
Page 282 and 283:
Chapter 17 Elasticity We are often
Page 284 and 285:
Example 4A: What is price elasticit
Page 286 and 287:
Example 5A: Gertie’s Gas and Go i
Page 288 and 289:
Example 10A: When the price of Good
Page 290 and 291:
Example 13B: On the graph below, su
Page 292 and 293:
$7 - 6 - 5 - Price 4 - 3 - 2 - 1 -
Page 294 and 295:
In the long run, would the deadweig
Page 296 and 297:
___ 7. The factors that determine w
Page 298 and 299:
3. a. Which price (or prices) from
Page 300 and 301:
Chapter 18 Utility The basic econom
Page 302 and 303:
Nonetheless, society generally assu
Page 304 and 305:
Example 9: Capital City operates a
Page 306 and 307:
Marginal rate of substitution - the
Page 308 and 309:
The diamond-water paradox is the ob
Page 310 and 311:
Complete the table below to answer
Page 312 and 313:
4. The graph below shows indifferen
Page 314 and 315:
Chapter 19 The Firm The basic econo
Page 316 and 317:
than contributing to team productio
Page 318 and 319:
1. Difficulty in raising large amou
Page 320 and 321:
Corporations also use self-financin
Page 322 and 323:
Example 24: A blacksmith who produc
Page 324 and 325:
For financing needs, proprietorship
Page 326 and 327:
___ 13. Corporations: a. are comple
Page 328 and 329:
5. List two things that the absence
Page 330 and 331:
Chapter 20 Production and Costs The
Page 332 and 333:
In Example 5B, Birdwell finds that
Page 334 and 335:
variable cost initially decreases,
Page 336 and 337:
Quantity TC MC AFC AVC ATC 0 240 X
Page 338 and 339:
If the scale of operation is increa
Page 340 and 341:
average total cost. Average fixed c
Page 342 and 343:
___ 11. Concerning the cost curves:
Page 344 and 345:
5. Complete the following cost tabl
Page 346 and 347:
Chapter 21 Perfect Competition The
Page 348 and 349:
Even though a perfect competitor ca
Page 350 and 351:
Example 6C: This example builds on
Page 352 and 353:
At what price will there be neither
Page 354 and 355:
Appendix: Perfect Competition in th
Page 356 and 357:
Multiple Choice: ___ 1. A perfect c
Page 358 and 359:
___ 17. Perfect competition: a. req
Page 360 and 361:
Answers for Chapter 21 Fill-in-the-
Page 362 and 363:
Chapter 22 Monopoly Of the four mar
Page 364 and 365:
3. Exclusive ownership of an essent
Page 366 and 367:
maximizing quantity (4 units) creat
Page 368 and 369:
$22 - 20 - 18 - 16 - 14 - Deadweigh
Page 370 and 371:
2. Negotiating, beginning at a high
Page 372 and 373:
Legal barriers are created by gover
Page 374 and 375:
___ 8. The slope of the demand curv
Page 376 and 377:
Price Quantity 3. List some of the
Page 378 and 379:
Chapter 23 Monopolistic Competition
Page 380 and 381:
For Percomp (the perfect competitor
Page 382 and 383:
Example 7A: The graph below represe
Page 384 and 385:
Example 9: The Organization of the
Page 386 and 387:
Example 12 illustrates the dilemma
Page 388 and 389:
its current price and quantity. The
Page 390 and 391:
___ 14. Game theory: a. is a method
Page 392 and 393:
Answers for Chapter 23 Fill-in-the-
Page 394 and 395:
Chapter 24 Factor Markets The basic
Page 396 and 397:
$ $240 - 200 - 160 - 120 - 80 - 40
Page 398 and 399:
Since producers will attempt to equ
Page 400 and 401:
2. Differences in nonmoney aspects
Page 402 and 403:
were his strikeouts, walks, and hom
Page 404 and 405:
___ 3. To maximize profits, a produ
Page 406 and 407:
___ 19. According to the book, “M
Page 408 and 409:
Multiple Choice: 1. a. 8. c. 15. d.
Page 410 and 411:
Chapter 25 Labor Unions The primary
Page 412 and 413:
The elasticity of demand for union
Page 414 and 415:
Example 4A: Assume that the graph b
Page 416 and 417:
Notice from the graph in Example 6
Page 418 and 419:
Wage Factory A Quantity of Labor S
Page 420 and 421:
As a cartel, a labor union faces a
Page 422 and 423:
___ 10. For a monopsony: a. there i
Page 424 and 425:
3. The graph below represents a lab
Page 426 and 427:
Chapter 26 Interest, Present Value,
Page 428 and 429:
An increase in expected rates of re
Page 430 and 431:
An asset is valuable because we exp
Page 432 and 433:
Example 13B: General Ordnance prove
Page 434 and 435:
Appendix: Present Value Table One f
Page 436 and 437:
___ 4. An increase in expected rate
Page 438 and 439:
Problems: 1. List and explain the t
Page 440 and 441:
Chapter 27 Market Failure The basic
Page 442 and 443:
External Benefit If a market genera
Page 444 and 445:
Example 2: To encourage the consump
Page 446 and 447:
$100 - 90 - 80 - MSC 70 - $ 60 - 50
Page 448 and 449:
A common good is nonexcludable. Non
Page 450 and 451:
Page 452 and 453:
___ 5. What government policy would
Page 454 and 455:
4. Based on the information on the
Page 456 and 457:
Chapter 28 Public Choice and Govern
Page 458 and 459:
Candidates and the Median Voter Mod
Page 460 and 461:
Example 8: According to State and F
Page 462 and 463:
Example 10: When Elvis Presley was
Page 464 and 465:
4. Pessimistic bias. This is the te
Page 466 and 467:
___ 5. An elected official will: a.
Page 468 and 469:
2. If a certain policy will yield s
Page 470 and 471:
Chapter 29 Government Regulation of
Page 472 and 473:
underproduction is the amount that
Page 474 and 475:
micromanagement results in business
Page 476 and 477:
market. They may agree with their c
Page 478 and 479:
Questions for Chapter 29 Fill-in-th
Page 480 and 481:
___ 10. The public interest theory
Page 482 and 483:
4. List the four types of costs imp
Page 484 and 485:
Chapter 30 Agriculture and Health C
Page 486 and 487:
weather may cause bumper crops. Bad
Page 488 and 489:
Security and Rural Investment Act o
Page 490 and 491:
Example 12: From 1960 to 2013, the
Page 492 and 493:
1. NHI would provide universal heal
Page 494 and 495:
d. Insurance providers are not allo
Page 496 and 497:
Page 498 and 499:
Answer questions 7. through 10. by
Page 500 and 501:
___ 21. If there were no individual
Page 502 and 503:
Chapter 31 Income Distribution and
Page 504 and 505:
Income is more equally distributed
Page 506 and 507:
over a typical career is the accumu
Page 508 and 509:
Ideal Income Redistribution The ide
Page 510 and 511:
Poverty - a family whose income fal
Page 512 and 513:
Appendix: Income Inequality around
Page 514 and 515:
How is this story an analogy for th
Page 516 and 517:
___ 2. In 2013, the Lowest Income 6
Page 518 and 519:
Problems: 1. Explain the two primar
Page 520 and 521:
Absolute advantage - when one natio
Page 522 and 523:
Fiat money - money by government de
Page 524 and 525:
Nonrivalrous good - a good for whic
Page 526 and 527:
Absolute advantage, 16-9 Absolute e
Page 528 and 529:
“Company town”, 25-6 Comparativ
Page 530 and 531:
Eli Lilly and Company, 22-1 Emergen
Page 532 and 533:
Houston, Texas, 15-10 Human capital
Page 534 and 535:
Market, 3-1, 3-8-9 Market basket, 4
Page 536 and 537:
Political bias, 9-4, 12-7 Political
Page 538 and 539:
Short run production, 20-2-3 Short-
Page 540 and 541:
Upturns, 9-4 USDA, 27-9, 30-1-2, 30
show all

merged

Create successful ePaper yourself

Delete template?

Save as template?