Introduction to Economics Exercise 1 - 1481 Words

INTRODUCTION TO ECONOMICS Exercise 1 1. What determines that a resource be scarce? Why is scarcity important in defining Economics as a science Resources are seen as being scarce, when the wants exceed the resources. The fundamental problem of economics relates to the choices made in the face of limited resources and unlimited wants. 2. Read your local newspaper and economic magazines. Explain the difference between Microeconomics and Macroeconomics. From your research, give three examples of microeconomic and macroeconomic issues. Microeconomics relates to the study of households and firms and the interaction between these different economic actors. Macroeconomics, however, relates to the study of the economy as a whole,†¦show more content†¦All the market will be affect; we will see an increase of demand for main and complementary goods. Shortage will probably appear and price will increase to search equilibrium. Rumor will be reality. 7. Using the following demand and supply table Price | Demand | Supply | 1.25 | 8 | 28 | 1.00 | 14 | 24 | 0.75 | 20 | 20 | 0.50 | 26 | 16 | 0.25 | 32 | 12 | a. Graph the demand curve and the supply curve b. Identify the equilibrium price and equilibrium quantity c. Assume a price of 1.00, Identify if there is shortage or surplus in the market and how the market forces behave to reinstate the equilibrium d. Now assume the price is 0.50 and repeat the question above e. Now assume this is the market behavior for an inferior good, what would happen if the consumers income would increase from $ 25 to $ 32 a week f. Assume this markets complementary good ´s price increases, what would happen in this market g. Assume there is a rumor that the price for this good will increases in the following days. How do expectations affect this market? What will be the final outcome? For all the questions above you must support your answer with a graph. 8. Price elasticity of demand : (0,1)/(-0,2) = -1,5 The demand is elastic and sensitive to price changes. 9. Price elasticity of demand : ((0,38-0,5)/0,5) = -0,24 -24% ((26000-10000)/10000) = 1,6 160% (-0,24)/(1,6) = -0,15 The demand is elastic and sensitive to priceShow MoreRelatedSocial Determinants of Childhood Obesity Essay example1265 Words   |  6 Pagestheir doctor, just as they were when they were babies and toddlers, it will help doctors and parents to closely monitor their weight. Although obesity is caused by an imbalance of the calories consumed with the output of energy through metabolism and exercise (O’Gorman et al., 2011; Wang, 2008), the reason/s for this imbalance can arise from several of the 10 social determinants (the social gradient, stress, early life, social exclusion, work, unemployment, social support, addiction, food, and transport)Read MoreAnnotated Bibliography: Obesity828 Words   |  3 PagesA., et.al., eds. (2007). Children, Obesity Exercise. New York: Routledge. Americas children are not getting enough exercise, and the health risks due to obesity are becoming epidemic in nature. Even First Lady Michelle Obama is supporting an initiative to help children become more active and to provide for exercise (at least 30-60 minutes per day) in all schools. Even limited amounts of exercise can have great health benefits. When humans exercise, the brain produces chemicals that help enhanceRead MoreEssay about Effects of Human Activities on the Lake System630 Words   |  3 Pagesï » ¿Jacquilyn L. Estrada Date Performed: February 23, 2013 Z-2R/Z2-12 Date Submitted: March 4, 2013 Exercise 2: Effects of Human Activities on the Lake System Introduction Laguna de Bay is said to be the Philippines’ largest inland water body covering situated at the heart of CALABARZON.   It is also specified that a total of twenty-four (24) sub-basins drain directly to the lake, with the Pagsanjan-Lumban Rivers System contributing to as much as 35% of the total inflow to the lakeRead MoreEcon 2301 Study Guide1079 Words   |  5 Pages discussion, and small group exercises. Course Rationale This course is meant to give students insight into the dynamics of our national economy. The knowledge gained in this course will make students more informed citizens and allow them to follow the debates over national economic policy reported in the media. This course is also a foundation course that will prepare students to be successful in upper division finance, marketing, business administration, economics, government and social work coursesRead MoreThe Global Challenges of Comparative Politics1393 Words   |  6 PagesIntroduction The Global Challenges of Comparative Politics Introduction to Comparative Politics-Studies how different countries both shape and are shaped by the world. 1989,2001, and 2008 define the current era of world politics-describes a particular important moment; critical juncture. A frequently cited date is 1989, when the Berlin wall was dismantled. 1989 ushered in three important changes. Marked the end of a bipolar world-marked the emergence of a unipolar world. Marked the triumphRead MorePower Elite1379 Words   |  6 Pageswhom we can call the elite or the power elite. Power can be defined as the ability to effect and control the behavior of others. Elite, is a relatively small dominant group in a big society that usually made up from the upper class members of society.[1] The theory of power elite claims that power is concentrated in the hands of a few and composed of people who occupy the top positions in society and have access to political power. In other words this theory claims that a single elite group decidesRead MoreEconomic Impact Of Economic Freedom On Economic Growth1403 Words   |  6 PagesIntroduction: In the last three decades the concept of economic freedom have dominated the economic theories as the best way to economic development, Many economists and politicians believe that economic freedom displays a significantly positive effect on economic growth, while others believe that the increased freedom will have a negative effects on economic growth. In addition, all of the international organizations such as the World Bank and the International Monetary Fund (IMF) encourage developingRead MoreCase Study: Application of Real Options to Energy Investments1718 Words   |  7 PagesIntroduction Energy investments have been evaluated using diverse methods. Santos et. al. (2014) argue that conventional approaches such as Net Present Value (NPV) or Internal Rate of Return (IRR) do not consider relevant project characteristics like irreversibility, uncertainty and management flexibility. They propose that the Real Options Approach (ROA) has an advantage over conventional methods. The aim of this essay is to apply real options to a renewable energy investment (mini-hydro plant)Read MoreObesity And Obesity Among Hispanic And African American Communities1701 Words   |  7 PagesDiabetes and Obesity Abstract There exists a close relationship between diabetes and obesity. The two conditions have troubled the global sector, leading to numerous deaths and excessive expenditure. This study evaluates the relationship between exercise/diets with obesity and diabetes among Hispanic and African American populations. The two communities face challenges of contracting diabetes and obesity owing to their lifestyle. There is much to compare among the African American and Hispanic peopleRead MoreMcdonald s Risk Assessment Policies And Procedures1216 Words   |  5 PagesABC Co. XYZ road, Australia Website: Phone: email: TITLE: RISK ASSESSMENT POLICIES AND PROCEDURES DATE: 1-1-201X TO: ASSESSOR FROM: Mr.ABC Introduction: This report is about McDonalds’s risk assessment policies and procedures. We have done technical analysis of policies, procedures, guidelines, strengths, weaknesses, legal and legislation requirements of McDonalds. This report summarizes our work to make it convenient for