The Basics of Economics Essay

643 Words Jun 24th, 2013 3 Pages
CRAM Exclusive
Essay Sample
In each of the following identify which of the economic principle(s) (see below) is at work. a. You pick the shortest line at the store checkout. g. People respond to incentives. b. The price of new textbooks increased so you buy the used textbook. e. Markets are a good way to organize economic activity. c. You decide to watch the Olympics rather than study for this test. b. The cost of something is what you must give up to get it. d. You help your friend with economics, he helps you

middle of document…

9. Comparative advantage
j. Change in the quantity demanded of a good that is the result of a change in that good’s price all other influences held constant. 11. Demand Curve
k. A fall in the price of one good makes people more willing to buy the other good. 14. Substitutes
l. Shift in demand curve as a result of a change in a factor other than price of the good. 12. Complements
m. A rise in income increases the demand for a good. 13. Normal good

3. Identify whether the following statement are normative(n) or positive(p).
a. The price of gas is too high. Normative.
b. The Federal Reserve lowered interest rates yesterday. Positive.
c. The long term national debt should be reduced. Normative.
d. Foreign imports are bad for the economy. Positive.
e. Inflation is expected to rise. Positive.
f. More women are enrolled in college than men. Positive.
g. People who smoke pass on increased medical costs to the whole society. Positive.

Suppose that the price of overnight package delivery service is $18 before a $5 excise tax is imposed. With the tax, the price rises to $20. What is the supplier’s burden (incidence) of the tax? Suppliers burden is $3 because $18 + $5 = $23 thus $23 - $20 = $3 What is the consumer’s? It is $2 because originally consumers paid $18, but with tax now pay $2 extra thus consumers burden is $2. Under what circumstances does the burden of an excise tax fall mainly on
CRAM Exclusive

Related Documents

  • Basic Economics with Tar Essay

    the great economic crisis in our country especially, the need of food. That’s why the price of rice rises since the demand is great and we only have limited supplies. It was the crisis of consumer goods. Accordingly, consumer goods is a commodity, or a physical, tangible item that satisfies some human want or need, or something that people find useful or desirable and make an effort to acquire it. Goods that are scarce (are in limited supply in relation to demand) are called economic goods, whereas

    Words: 993 - Pages: 4
  • Basics of Economic Geography Essays

    Geography thus may be: "the study of the way in which society organizes itself in space".Economic geography is the study of the location, distribution and spatial organization of economic activities across the world. It represents a traditional subfield of the discipline of geography. However, in recent decades, many economists have also approached the field in ways more typical of the discipline of economics. Economic geography has taken a variety of approaches to many different subject matters, including

    Words: 2788 - Pages: 12
  • Economic Basics Essay

    7. In capitalism, most businesses have a profit motive. Describe at least one reason that businesses with a profit motive may be helpful for society and at least one reason that they may be harmful for society. Then, explain whether you think profit motive is a good thing or a bad thing for society. (4-7 sentences. 2.0 points)Capitalism allows people to choose what tthey want to do. It gives people the right to spend their money where they want harmful. the government control is very limited it allows

    Words: 772 - Pages: 4
  • Universal Basic Income Essays

    In a paper for the BIEN congress, it indicates that a basic income is definitely feasible. If the basic income is constructed by cutting tax allowances and means-tested and contributory benefits, then a revenue neutral basic income would be possible. The Citizens Income Trust has shown that for the financial year 2012-2013, a basic income of c71, £56.25, and £142.70 for adults over 25 years, 16 to 24 years old, and pensioners respectively, could have been financed through cutting tax allowances,

    Words: 1904 - Pages: 8
  • Basics of Studying Literature Essay

    material and present it with directness and clearness; and (2) of the Emotion, which gives warmth, enthusiasm, and appealing human power. The relative proportions of these two faculties vary greatly in books of different sorts. Exposition (as in most essays) cannot as a rule be permeated with so much emotion as narration or, certainly, as lyric poetry. In a great book the relation of the two faculties will of course properly correspond to form and spirit. Largely a matter of Emotion is the Personal Sympathy

    Words: 3640 - Pages: 15
  • Essay on Economics

    up some things for other things. The Economic Problem LIMITED RESOURCES UNLIMITED WANTS SCARCITY An insufficiency of means in relation to wants CHOICE OPPORTUNITY COSTS The ‘methods’ definition focuses on how economists deal with problems rather than the problems themselves. (i.e. the Scientific method) They see Economics as supplying a ‘tool kit’ to explain the economic dimensions of human behaviour. Combining both views of Economics we can define Economics as the study of how individuals and

    Words: 4953 - Pages: 20
  • Essay What Are the Basics of Bartending?

    you are serving the prepared mixtures in the correct glass types. This will require some research and studying up, but it absolutely helps to leave a positive impression. Just like any student would struggle with math if they didn't understand the basic formulas for addition and subtraction, any bartender can not easily succeed without knowing about what they are working with. Once you become aware of what mixes well together and how to serve it, the technique of preparation comes into play. This

    Words: 504 - Pages: 3
  • Accounting Basics Essay

    Each step also needs to be performed in specific order. There are nine basic steps in the accounting process (Weygandt, et. al., 2012). First, it needs to be decided if a business transaction occurred. If it a business transaction has occurred then it has to be determined what kind of transaction took place. Each transaction will affect two aspects of the equation every time (Weygandt, et. al., 2012). If there is an increase in an asset then there has to be a decrease in another asset or a

    Words: 942 - Pages: 4
  • Economics Essay

    Although capitalism is seen as rule by the people and free market, without government  rules and regulations it would not exist. Even capitalism has some government involvement with  the three basic rules they follow, and without these rules many serious social and economic  problems would not be fixed. Capitalism relies on stable banks and financial businesses in order  to function properly, when people wish to take out all their money at once the banks become  susceptible to disaster and 

    Words: 1450 - Pages: 6
  • Is Democracy a Basic Social Good? Essay

    What better way to add to the basic social good by implementing a way of life which can allow those people affected by it to help each other, and ultimately their government. Dewey also goes to show that since democracy allows for the everyday man to have free speech with his neighbors and to educate himself with public information, that person can use that power to better society as a whole. He also sees democracy as a gift, something so irreplaceable to all who embrace it in saying, “Democracy

    Words: 1525 - Pages: 7