Economics Homework Three - Model - Revision history

AddisonDM at 03:34, March 5, 2011

2011-03-05T03:34:49Z

Aschlafly at 16:09, September 30, 2009

2009-09-30T16:09:16Z

Aschlafly: Protected "Economics Homework Three - Model": model answers are complete ([edit=sysop] (indefinite) [move=sysop] (indefinite))

2009-09-30T04:13:59Z

Protected "Economics Homework Three - Model": model answers are complete ([edit=sysop] (indefinite) [move=sysop] (indefinite))

Aschlafly at 03:41, September 30, 2009

2009-09-30T03:41:19Z

Aschlafly: complete

2009-09-30T03:40:32Z

complete

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2009-09-30T03:25:32Z

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2009-09-30T01:01:08Z

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2009-09-28T12:34:55Z

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← Older revision		Revision as of 03:34, March 5, 2011
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	:These school drop outs are searching for a job because the opportunity to make the set amount of money seems appealing. This appeal leads them to drop out of school where they could have formed a far better future for themselves. Now, they must stay in the same position with no hope of a real job.		:These school drop outs are searching for a job because the opportunity to make the set amount of money seems appealing. This appeal leads them to drop out of school where they could have formed a far better future for themselves. Now, they must stay in the same position with no hope of a real job.
	:Minimum wage only serves to hold back its participants. It puts employees out of work. It also attracts those who are not in a position to need to be employed, but are just looking for the easy way out. It encourages individuals to not do the best they can. For all of these reasons I affirm that minimum wage should not be increased and is a poor ideology to start. (Elizabeth)		:Minimum wage only serves to hold back its participants. It puts employees out of work. It also attracts those who are not in a position to need to be employed, but are just looking for the easy way out. It encourages individuals to not do the best they can. For all of these reasons I affirm that minimum wage should not be increased and is a poor ideology to start. (Elizabeth)
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		+	[[Category:Economics lectures]]

← Older revision		Revision as of 16:09, September 30, 2009
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	===Honors===		===Honors===
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−	~~Write an essay of about 200-300 words total on one or more of the following topics:~~

	9. Explain price discrimination, and conclude with your view of whether it should be legal or illegal.		9. Explain price discrimination, and conclude with your view of whether it should be legal or illegal.

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 .  Do you support "free trade" because it creates wealth, or do you oppose it for simply redistributing wealth to foreigners, some hostile to the United States?
-:Free trade is something I agree with.  Organically occurring market forces are more efficient and furnish better results than any government intervention could conceivably attain.  The general public typically doesn't care where products come from, they just want the cheaper price tag, resulting in increased demand for those goods. ..."  (Sarah)
+:Free trade is something I agree with.  Organically occurring market forces are more efficient and furnish better results than any government intervention could conceivably attain.  The general public typically doesn't care where products come from, they just want the cheaper price tag, resulting in increased demand for those goods. ...  (Sarah)
 .  What is your view of the minimum wage?  Should it be increased?
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 :These school drop outs are searching for a job because the opportunity to make the set amount of money seems appealing. This appeal leads them to drop out of school where they could have formed a far better future for themselves. Now, they must stay in the same position with no hope of a real job.
 :Minimum wage only serves to hold back its participants. It puts employees out of work. It also attracts those who are not in a position to need to be employed, but are just looking for the easy way out. It encourages individuals to not do the best they can. For all of these reasons I affirm that minimum wage should not be increased and is a poor ideology to start.  (Elizabeth)

← Older revision		Revision as of 03:40, September 30, 2009
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	:Nearly horizontal; nearly vertical. (Mary)		:Nearly horizontal; nearly vertical. (Mary)
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		+	:Perfectly elastic would be a horizontal line and perfectly inelastic would be a vertical line. (Caroline)

	4. '''''Why''''' is the name "necessity" given to a good that has a price elasticity of less than one, and the name "luxury" given to a good that has a price elasticity of more than one?		4. '''''Why''''' is the name "necessity" given to a good that has a price elasticity of less than one, and the name "luxury" given to a good that has a price elasticity of more than one?

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 :a. horizontal b. vertical  (Isaac)
 . '''''Why''''' is the name "necessity" given to a good that has a price elasticity of less than one, and the name "luxury" given to a good that has a price elasticity of more than one?
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 :An example of a normal good is a new car; an example of an inferior good would be a used car.  (Matt)
 .  A "price ceiling" is a type of price control that sets the maximum price allowed by law for something (like a real ceiling).  A "price floor" is a type of price control that sets a minimum price allowed by law for something (like a real floor).  Does a price ceiling that is set below the equilibrium (free market) price cause a surplus or a shortage?  Using the graph in this lecture, explain why a surplus or a shortage is created by a price ceiling.
-:A price ceiling set below the free market equilibrium will cause a shortage.  Because the price is set below the equilibrium, the demand for the goods will go up.  However, the quantity supplied is lower than it would be in a free market, because there is less money to be made by selling those goods with ap rice ceiling.  Therefore, because of a high demand and a low supply due to the price ceiling, there becomes a shortage of goods.  (Sean)
+:A price ceiling set below the free market equilibrium will cause a shortage.  Because the price is set below the equilibrium, the demand for the goods will go up.  However, the quantity supplied is lower than it would be in a free market, because there is less money to be made by selling those goods with a price ceiling.  Therefore, because of a high demand and a low supply due to the price ceiling, there becomes a shortage of goods.  (Sean)
 ===Honors===
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 .  Do you support "free trade" because it creates wealth, or do you oppose it for simply redistributing wealth to foreigners, some hostile to the United States?
+:Free trade is something I agree with.  Organically occurring market forces are more efficient and furnish better results than any government intervention could conceivably attain.  The general public typically doesn't care where products come from, they just want the cheaper price tag, resulting in increased demand for those goods. ..."  (Sarah)
 .  What is your view of the minimum wage?  Should it be increased?

← Older revision	Revision as of 04:13, September 30, 2009
(No difference)

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 . Explain the  concept of income elasticity.
 :Income elasticity is defined as the percent change in quantity divided by the percent change in income, explaining the fact that as a person's income decreases, they have a lower demand for most goods--they cannot afford as much--and the corollary concept: when their income increases, the demand increases.  Goods where the demand decreases when income increases are inferior goods, less desirable substitutes for something. A used car is an inferior good.  (Duncan)
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 Editor's Note:  this question has a mistake.  It should have said "'''income''' elasticity" rather than "price elasticity."
 :A necessity is considered income elasticity because it is something that is needed, whether income is high or low. A luxury good is not a needed necessity therefore it is not purchased as often if the income is low.  (Amanda)
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 .  A "price ceiling" is a type of price control that sets the maximum price allowed by law for something (like a real ceiling).  A "price floor" is a type of price control that sets a minimum price allowed by law for something (like a real floor).  Does a price ceiling that is set below the equilibrium (free market) price cause a surplus or a shortage?  Using the graph in this lecture, explain why a surplus or a shortage is created by a price ceiling.
+:A price ceiling set below the free market equilibrium will cause a shortage.  Because the price is set below the equilibrium, the demand for the goods will go up.  However, the quantity supplied is lower than it would be in a free market, because there is less money to be made by selling those goods with ap rice ceiling.  Therefore, because of a high demand and a low supply due to the price ceiling, there becomes a shortage of goods.  (Sean)
 ===Honors===
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 :Minimum wage slows the market and the people participating within it. Minimum wage pushes already working people out of their jobs. It also encourages children to quit school before finishing their education. Minimum wage is an all around poor option and should not be employed.
-When minimum wage is employed it puts people who are already working out of a job. It does this because when paying a higher minimum wage is forced upon the employer they naturally want to pay less and therefore fires employees in order to conserve money. When this happens there are fewer jobs available. However, this does not seem to faze the school drop outs.
+:When minimum wage is employed it puts people who are already working out of a job. It does this because when paying a higher minimum wage is forced upon the employer they naturally want to pay less and therefore fires employees in order to conserve money. When this happens there are fewer jobs available. However, this does not seem to faze the school drop outs.
-These school drop outs are searching for a job because the opportunity to make the set amount of money seems appealing. This appeal leads them to drop out of school where they could have formed a far better future for themselves. Now, they must stay in the same position with no hope of a real job.
+:These school drop outs are searching for a job because the opportunity to make the set amount of money seems appealing. This appeal leads them to drop out of school where they could have formed a far better future for themselves. Now, they must stay in the same position with no hope of a real job.
-Minimum wage only serves to hold back its participants. It puts employees out of work. It also attracts those who are not in a position to need to be employed, but are just looking for the easy way out. It encourages individuals to not do the best they can. For all of these reasons I affirm that minimum wage should not be increased and is a poor ideology to start.  (Elizabeth)
+:Minimum wage only serves to hold back its participants. It puts employees out of work. It also attracts those who are not in a position to need to be employed, but are just looking for the easy way out. It encourages individuals to not do the best they can. For all of these reasons I affirm that minimum wage should not be increased and is a poor ideology to start.  (Elizabeth)
 .  Describe and discuss how wealth is created in society.
+:

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 :A substitute for french fries would be actually believe it or not be steamed broccoli! I just recently went out to eat with my family, and my brother-in-law ordered chicken tenders, but instead of ordering french fries with them he ordered steamed broccoli for a more nutritional choice. For as long as I can remember going that particular restaurant, broccoli has always been the substitute for french fries, and I find it very interesting that obviously since they have kept it on their menu for long they are making money off of it! A complement for french fries would be ketchup, or soda, or a hamburger.  (Deborah)
 .  Give an example of a "normal" good, and an example of an "inferior" good.
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 :An example of a “normal” good would be a laptop. When a income increases, there is more of a demand for newer electronics increases. An example of an “inferior” good would be used cars. An increase in income would allow people to have more money to spend on newer cars. The demand for used cars, which are generally cheaper, would decrease.  (Allie)
 .  A "price ceiling" is a type of price control that sets the maximum price allowed by law for something (like a real ceiling).  A "price floor" is a type of price control that sets a minimum price allowed by law for something (like a real floor).  Does a price ceiling that is set below the equilibrium (free market) price cause a surplus or a shortage?  Using the graph in this lecture, explain why a surplus or a shortage is created by a price ceiling.
@@ Line 60: / Line 64: @@
 .  What is your view of the minimum wage?  Should it be increased?
+:Minimum wage slows the market and the people participating within it. Minimum wage pushes already working people out of their jobs. It also encourages children to quit school before finishing their education. Minimum wage is an all around poor option and should not be employed.
 .  Describe and discuss how wealth is created in society.
+:

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 :Income elasticity deals with the change in demand for a good based on buyers’ incomes. A good is considered “income elastic” if demand significantly decreases when incomes decrease. A good is considered “income inelastic” if demand remains roughly the same when incomes decrease. Necessary or basic goods are income inelastic because everyone, regardless of income, needs them (demand will still decrease but not very much); “luxury” or essentially unnecessary goods are income elastic. (Addison)
 . A nearly perfectly elastic demand curve is nearly ________ in shape; a nearly perfectly inelastic demand curve is nearly __________ in shape.
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 Editor's Note:  this question has a mistake.  It should have said "'''income''' elasticity" rather than "price elasticity."
 :Necessities are the goods we need. They are income inelastic. They are needed and purchased regardless of our income level. Examples would be basic food and clothing to get by. A luxury is a good we want. It income elastic don't generally purchase luxuries in hard economic times.  (Shanna)
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 :Just suppose you do not own a cow, but happen to be lucky enough to live near someone who does and who sells the milk produced by it. If your income is high, you will probably be able to buy some of the expensive, but deliciously creamy, "real milk". However, if your income is low and you simply can't use any of your money on this milk, you will probably be forced to resort back to the infinitely inferior milk sold in stores. The milk from the cow is a "normal good" and the milk sold in stores is an "inferior" good.  (Trisha)
 .  A "price ceiling" is a type of price control that sets the maximum price allowed by law for something (like a real ceiling).  A "price floor" is a type of price control that sets a minimum price allowed by law for something (like a real floor).  Does a price ceiling that is set below the equilibrium (free market) price cause a surplus or a shortage?  Using the graph in this lecture, explain why a surplus or a shortage is created by a price ceiling.
@@ Line 38: / Line 46: @@
 Write an essay of about 200-300 words total on one or more of the following topics:
 .  Explain price discrimination, and conclude with your view of whether it should be legal or illegal.
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 :Price discrimination is the act of selling two identical goods to two different people, charging different prices for the two sales.  It is technically illegal, as many feel it is unfair for a supplier to "exploit" one person by charging more, but it still goes on under the guise of different tricks.  For example, at a ski mountain in Vermont where we usually go for a week in the winter, there are two classes of lift ticket for over-18s: Adult and Vermonter; a Vermonter ticket (which requires residence in the state) is 20% less than a normal one.
 :Price discrimination should not be illegal; the resale market for most goods prevents it (if a merchant sold a rug to one person for $2000 and to another for $2500, the one who got the better price would simply buy more rugs than he needed and resell them at a price lower than $2500 and more than $2000.  For items such as lift tickets or a sweatshirt with your name on it, you cannot resell it, and the sellers, if discrimination is illegal, will simply find ways around it, as described above.  Finally, poorer people will most likely get a better deal on things, as sellers know they cannot afford as high a price as the richer.  (Duncan)
 .  Do you support "free trade" because it creates wealth, or do you oppose it for simply redistributing wealth to foreigners, some hostile to the United States?