Chapter 1, Introduction Video Solutions, Economic Issues and Policy (with InfoApps 2-Semester Printed Access Card)

Problem 1

Suppose your friend is strong on defense and insists that we must bolster our national defense, whatever the cost. How can you use economic logic to make him or her aware of the opportunity costs associated with his or her objective?

Erwin Antoni

Numerade Educator

03:20

Problem 2

Unemployment imposes serious hardship on out-of-woak individuals and their families. What are the costs of uncmployment to society as a whole? (Keep in mind the production possibilities curve.)

Kaylee Mcclellan

Numerade Educator

05:06

Problem 3

Why, in a rich nation, is it important that we fully use our resources and technology to maximize our nation's output? Is it only the level of total output that is important, or are the types of output that we produce also important? Do you think that the distribution of this output (and the income generated by its production) is just as important as its total amount?

Md.Daniyal Arshad

Numerade Educator

06:27

Problem 4

How do you think our nation's output should be distributed according to income or according to some other standard (such as basic human need)?

Kanishk Mishra

Numerade Educator

01:20

Problem 5

Equilibnium implies that quantity demanded equals quantity supplied at a particular price. Must consumers and producers actually sit down to discuss and decide on an equilibrium market price, such as we may see in a fammers' market or a flea market? Why or why not?

Daniel Cisneros

Numerade Educator

01:44

Problem 6

Does the efficiency of the price mechanism ensure that our market-based econonny is an equitable one? Why or why not?

Srikar Katta

Numerade Educator

04:06

Problem 7

The following schedules are for bushels of apples in a local market. Graph the supply and demand curves. What are the equilibrium price and quantity?
$$
\begin{array}{ccc}
\hline \text { Price } & \begin{array}{c}
\text { Quantity } \\
\text { Demanded }
\end{array} & \begin{array}{c}
\text { Quantity } \\
\text { Supplied }
\end{array} \\
\hline \$ 20 & 200 & 1,000 \\
18 & 400 & 800 \\
16 & 600 & 600 \\
14 & 800 & \$ 00 \\
12 & 1,000 & 200 \\
\hline
\end{array}
$$
Now assume that an early freeze has decreased the apple harvest, and the new supply schedule is as follows. Has supply increased or decreased? What are the new equilibrium price and quantity? (Note that the demand curve is unchanged.)
$$
\begin{array}{cc}
\hline \text { Price } & \text { Quantity Supplied } \\
\hline \$ 20 & 600 \\
18 & 400 \\
16 & 200 \\
14 & 0 \\
\hline
\end{array}
$$

Rashmi Sinha

Numerade Educator

03:02

Problem 8

Go to the Web site at http:/hetec.mec.ac.ul/JokEc, find a good economics joke, and share it with your teacher!

Ahmad Reda

Numerade Educator

03:02

Problem 9

Become familiar with the EconApps Web site at http:i/www. cengage.com/economics/cconapps and explore some of the topics mentioned in the margins of your book. This site includes South-Western's dynamic Web features: EconNews Online, EconDebate Onlinc, and EconLinks Online. Organized by pertinent Economic topics and searchable by topic of fearure, these will deepen your understanding of theoretical concepts through hands-on exploration and analysis of the latest economic news stories, policy debates, and data. You, the student, will find this site invaluable.

Ahmad Reda

Numerade Educator

Problem 10

One additional source that may be useful if you need to do research on economics topics is the Web site of the British periodical, The Economist. Its articles on various topics can usually be understood by beginning students of cconomics. You can find this site at httpll www cconomist com.

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