UltraAlbatross3748
Section 1: Analyze whether each of the following is primarily a…
Section 1: Analyze whether each of the following is primarily a microeconomic or macroeconomic issue. Justify each of the answers with a specific explanation (one to two sentences each).
Briefly explain your answers.
Purchasing a cup of coffee
An increase in Canadian imports for the month of August
A student’s decision on whether or not to take an online course
A change in the country’s immigration policy
A doctor’s decision to retire
Section 2: Analyze whether each of the following is a positive or normative economic statement. Justify each of the answers with a specific explanation (one to sentences each).
GDP has increased by 3.5% in 2020.
Children should be spending more time in school to increase their odds of employment.
Eating oranges can be beneficial for one’s health.
The price of gas is up 5.7% this year in comparison to last year.
Section 3: Explain the effect of each of the following on the United States production possibilities frontier (PPF). Does it shift inward, outward, or not at all? Briefly explain your answers.
A decrease in the average expenditures on food
An decrease in immigration of foreign workers to the U.S.
An increase in the U.S. population
The migration of skilled Europe workers to the U.S.
Section 4: Answer the following in a 450- to 500-word essay.
An opportunity cost is the value of the best alternative we forgo to make a decision. The decisions we make typically involve constraints such as time, money, and other resources. There is no “free lunch” in our decision making; we always encounter opportunity costs. If we decide to do something, it often means that we lose the chance to do something else. Therefore, we need to critically evaluate our decision making to minimize our opportunity costs based on the viable alternative choices available to us in a given period.
Given the above information as the background, assume parents are evaluating the opportunity costs of stay-at-home moms or dads under different scenarios. You should thoroughly explain whether the parent’s decision under each of the following scenarios would increase or decrease the opportunity costs for stay-at-home moms or dads (those who choose not to work outside the home).
There is low unemployment rate in the economy. What is its impact on the opportunity cost of the stay-at-home mom or dad? Does it increase or decrease the opportunity costs?
There is high average wage rate in the economy. What is its impact on the opportunity cost of the stay-at-home mom or dad? Does it increase or decrease the opportunity costs?
There is no improvement in the economic conditions that led to high demand for labor. What is its impact on the opportunity cost of stay-at-home mom or dad? Does it increase or decrease the opportunity costs?
Suppose the government increased income tax rates on wages earned. What is its impact on the opportunity cost of stay-at-home mom or dad? Does it increase or decrease the opportunity costs?
