The resource cost to produce fish and oil are listed below. Fish OilBritain 30 10Norway 60 30

1.Assume that each country has resources fixed at 120 units during the given time period. Fill in the table below with the maximum amount of fish or oil that Britain and Norway can produce from these resources.

1.What is the opportunity cost of producing 1 ton of fish in Britain?

2.What is the opportunity cost of producing 1 ton of fish in Norway?

3.Which country has an absolute advantage in the production of fish?

4.Which country has a comparative advantage in the production of fish?

Fish Oil

Britain

Norway

4 12

2 4

3 tons of oil

2 tons of oil

Britain

Norway

10

20

30

A

B

Soybeans

wheat

In the next figure, assume that the economy is operating at point A.

1. Why might the economy be operating at point A? Because the economy is in a recession

2. What is the opportunity cost of moving to B?There is no opportunity cost because you are not

simply shifting production, you are increasing the the overall production of the economy

Shipping method Delivery time Charge Standard shipping 3–7 days $3.99 Second-day air 2 business days $8.98 Next-day air 1 business day $13.98

Liza needs to buy a textbook for her Economics class tomorrow. The price at the college bookstore is $65. One online site offers it for $55

and another site, for $57. All prices include sales tax. The accompanying table indicates the typical shipping and handling

charges for the textbook ordered online.

8. What is the opportunity cost of buying online instead of at the bookstore? Note that if you buy the book online, you must wait to get it.

THE SHIPPING TIME BECAUSE IN ORDER TO GET A DEAL ON THE PRICE, YOU HAVE TO DO 2 DAY SHIPPING OR MORE

9. Show the relevant choices for Liza. What determines which of these options Liza will choose?

1) BUY THE BOOK @ BOOKSTORE @ $652)BUY BOOK ONLINE @ $63.98 ($55 + 8.98 2-DAY SH)3) BUY BOOK ONLINE @ $58.99 ($55 + 3.99 3-7 DAY SH)

S2

$1

$2

$3

$4

$5

200 400 600 800 1000

S1D1 D2

10. EP 1: ______

11. EP 2: ______

12. What might cause the shift in supply from S1 to S2? 13. What might cause the shift in demand from D1 to D2?

$3$3

HOTDOGS OR BUNS BECOME CHEAPER

PEOPLE ARE JUST HUNGRIER

_____ 14. What will happen to the supply curve for iPads if Apple lowers the selling price of them?

_____ 15. What will happen to the supply curve for automobiles if Nissan was to leave the auto industry?

_____ 16. What will happen to the supply curve if Nintendo predicts it will sell the Wii at a lower price?

_____ 17. What will happen to the supply curve for solar panels if the federal government rejects a subsidy to help pay for the costs?

_____ 18. What will happen to the supply curve for pizza if Edies raises the prices of its pizzas?

_____ 19. What will happen to the supply curve if Moog workers become more efficient?

M

SI

SI

SI

M

SO

20. What happened to the supply curve for National Fuel?

21. Which factor of change caused this change?

THE CURVE SHIFTED OUT

NEW RESERVES FOUND THAT ARE EASILY ACCESSIBLE

200 400 600 800 1000

$10

$20

$30 S2S1

____ 22. What will happen to the demand curve for IBM if they lower the price of their PC’s?

____ 23. What will happen to the demand curve for bottled water if there is a hot week forecasted?

____ 24. What will happen to the demand curve for chocolate the week leading up to Valentine’s Day?

____ 25. What will happen to the demand curve for Sabres Jerseys at the beginning of the NHL Season?

M

SO

SO

SO

D2

$1

$2

$3

$4

$5

200 400 600 800 1000

D1

SHIFT RIGHT

IT’S A HOTTER DAY

1200

26. Does it shift left, shift right or move along the curve? ____________________________

27. What factor of change causes this?

__________________________________________

Please choose whether the following is:1. Elastic2. Inelastic

____ 28. Water

____ 29. Salt

____ 30. Coffee

____ 31. Chocolate

2211

Match the curve with its label. A. Elastic demand curveB. Inelastic demand curveC. Elastic supply curveD. Inelastic supply curve

32.) ______

33.) _____

34.) ______ 35.) ______

B D

C A

Directions: For each of the following, indicate whether the group would be classified as Employed (E), Unemployed (U), or not counted (NC).

Wharton, TX has a population of 9,000. Of that 9,000:

36. ________ a. 6,000 work as paid employees.

37. ________ b. 1,100 are unemployed, but are looking for work.

38. ________ c. 1,400 are unemployed and have given up looking for work.

39. ________ d. 450 are retired and go fishing daily.

40. ________ e. 50 quit their jobs last year to go back to college. Now, calculate the following:

________ 41. How many people would be included in the workforce?

________ 42. What is the unemployment rate for Wharton, TX?

________ 43. How many people from above would be considered discouraged workers?

EUNCNCNC

7,10015.5%1,400

Directions: Answer questions by filling in an A (Traditional), B (Command), or C (Market) on the space provided.

_____ 44. Which economic system rejects new methods of farming?

_____ 45. Which economic system allows for the greatest individual freedom?

_____ 46. Which economic system features gender-based roles for its members and

offers predictability and stability?

_____ 47. Which economic system can change production goals quickly?

_____ 48. Which economic system is based on government directives?

ACA

CB

In 2012 you bought a used car for $4000. It was originally purchased in 2004 for $13,000. You have your mechanic look it over and fix some things on it for a cost of $550.

____ 49. How many dollars would be recorded in 2012 GDP?1.$100 2. $550 3. $4550 4. $13,000

____ 50. How many dollars would be recorded in 2004 GDP?1.$100 2. $550 3. $4550 4. $13,000

2

4