Econ 114.3 (X02) Assignment 1 (NO ANSWER).docVIP

Econ 114.3 (X02) Assignment 1 This assignment is based on the material in Modules 1, 2 and 3 of your COURSE GUIDE and Chapters 1, 5 and 6 of your textbook. Due date: Jan 22, 2016 Mark allocation: This assignment will count 10% toward your final grade 30 Multiple Choice (30 marks) Identify the choice that best completes the statement or answers the question. __a__ 1. Why do both households and societies face many decisions? a. because resources are scarce b. because populations may increase or decrease over time c. because wages for households and therefore society fluctuate with business cycles d. because people, by nature, tend to disagree _a___ 2. Which of the following would NOT be a result of laws that require firms to reduce pollution? a. lower spending by government b. higher prices to consumers c. lower wages to workers d. smaller profit to firms __b__ 3. What is the opportunity cost of an item? a. the number of hours needed to earn money to buy it b. what you give up to get that item c. usually more than the dollar value of the item d. usually less than the dollar value of the item __c__ 4. The average cost per seat on an airplane trip from Calgary to Edmonton is $105. Suppose no refreshments are served and seven seats are empty. How could the airline company increase its profit? a. if it charged no less than $105 for the seven remaining seats b. if it charged more than $105 for the seven remaining seats c. if it charged any ticket price above $0 for the remaining seats d. if it left the seats empty __a__ 5. How can trade benefit a family? a. A family benefits by allowing the family to buy a greater variety of goods and services at a lower cost. b. A family benefits by allowing each person to buy only the goods and services they want most. c. A family can benefit only if the family is not in economic competition with other families. d. Trade can only benefit entire nations, not individuals. _a___ 6. How does trade affec