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Principles of Microeconomics

Steven A. Greenlaw, David Shapiro

Chapter 1

Welcome to Economics - all with Video Answers

Educators

Chapter Questions

05:15

Problem 1

What is scarcity? Can you think of two causes of scarcity?

Jennifer Stoner
Jennifer Stoner
Numerade Educator
02:41

Problem 2

Residents of the town of Smithfield like to consume hams, but each ham requires 10 people to produce it and takes a month. If the town has a total of 100 people, what is the maximum amount of ham the residents can consume in a month?

Mukesh Devi
Mukesh Devi
Numerade Educator
03:18

Problem 3

A consultant works for $\$ 200$ per hour. She likes to eat vegetables, but is not very good at growing them. Why does it make more economic sense for her to spend her time at the consulting job and shop for her vegetables?

Mihir Nayar
Mihir Nayar
Numerade Educator
01:03

Problem 4

A computer systems engineer could paint his house, but it makes more sense for him to hire a painter to do it. Explain why.

EL
Etheric Lujan
Numerade Educator
01:21

Problem 5

What would be another example of a "system" in the real world that could serve as a metaphor for micro and macroeconomics?

Srikar Katta
Srikar Katta
Numerade Educator
14:36

Problem 6

Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram onto sheet of paper and then add a foreign country as a third agent. Draw a rough sketch of the flows of imports, exports, and the payments for each on your diagram.

Paul A.
Paul A.
California State Polytechnic University, Pomona
03:09

Problem 7

What is an example of a problem in the world today, not mentioned in the chapter, that has an economic dimension?

Mihir Nayar
Mihir Nayar
Numerade Educator
04:09

Problem 8

The chapter defines private enterprise as a characteristic of market-oriented economies. What would public enterprise be? Hint: It is a characteristic of command economies.

Mihir Nayar
Mihir Nayar
Numerade Educator
02:10

Problem 9

Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States?

Oluwadamilola Ameobi
Oluwadamilola Ameobi
Numerade Educator
03:58

Problem 10

Give the three reasons that explain why the division of labor increases an economy's level of production.

Mihir Nayar
Mihir Nayar
Numerade Educator
02:48

Problem 11

What are three reasons to study economics?

Mihir Nayar
Mihir Nayar
Numerade Educator
02:21

Problem 12

What is the difference between microeconomics and macroeconomics?

Mihir Nayar
Mihir Nayar
Numerade Educator
00:33

Problem 13

What are examples of individual economic agents?

Srikar Katta
Srikar Katta
Numerade Educator
00:54

Problem 14

What are the three main goals of macroeconomics?

EL
Etheric Lujan
Numerade Educator
00:00

Problem 15

How did John Maynard Keynes define economics?

Srikar Katta
Srikar Katta
Numerade Educator
03:13

Problem 16

Are households primarily buyers or sellers in the goods and services market? In the labor market?

Mihir Nayar
Mihir Nayar
Numerade Educator
01:56

Problem 17

Are firms primarily buyers or sellers in the goods and services market? In the labor market?

Mihir Nayar
Mihir Nayar
Numerade Educator
03:19

Problem 18

What are the three ways that societies can organize themselves economically?

Mihir Nayar
Mihir Nayar
Numerade Educator
02:31

Problem 19

What is globalization? How do you think it might have affected the economy over the past decade?

Mihir Nayar
Mihir Nayar
Numerade Educator
05:19

Problem 20

Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert.

Vishal Sharma
Vishal Sharma
Numerade Educator
02:47

Problem 21

Why would division of labor without trade not work?

Mihir Nayar
Mihir Nayar
Numerade Educator
02:13

Problem 22

Can you think of any examples of free goods, that is, goods or services that are not scarce?

Mihir Nayar
Mihir Nayar
Numerade Educator
01:51

Problem 23

A balanced federal budget and a balance of trade are secondary goals of macroeconomics, while growth in the standard of living (for example) is a primary goal. Why do you think that is so?

James Kiss
James Kiss
Numerade Educator
00:02

Problem 24

Macroeconomics is an aggregate of what happens at the microeconomic level. Would it be possible for what happens at the macro level to differ from how economic agents would react to some stimulus at the micro level? Hint: Think about the behavior of crowds.

Mihir Nayar
Mihir Nayar
Numerade Educator
04:44

Problem 25

Why is it unfair or meaningless to criticize a theory as "unrealistic?"

Mihir Nayar
Mihir Nayar
Numerade Educator
02:28

Problem 26

Suppose, as an economist, you are asked to analyze an issue unlike anything you have ever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situation?

Mihir Nayar
Mihir Nayar
Numerade Educator
01:34

Problem 27

Why do you think that most modern countries" economies are a mix of command and market types?

Srikar Katta
Srikar Katta
Numerade Educator
00:52

Problem 28

Can you think of ways that globalization has helped you economically? Can you think of ways that it has not?

EL
Etheric Lujan
Numerade Educator