1) FILL IN THE HIGHLIGHTED BOXES
WORKERS WAGE RATE TOTAL LABOR COST MARGINAL FACTOR COST
1 $ 12.00 $ 12.00
2 $ 12.10 $ 24.20
3 $ 12.20
4 $ 12.60
3) Using the following data, prove that pollution permits that can be bought and sold can reduce pollution from 12 units to 6 units at a lower cost than a regulation that specifies each of the three firms must cut its pollution in half.
FIRM X FIRM Y FIRM Z
Cost of Eliminating:
First unit of Polution $ 200 $ 500 $ 1,000
Second unit of Polution 300 700 2,000
Third unit of Polution 400 800 2,900
Fourth unit of Polution 500 900 3,400
Short answer questions in economics: economics, market economy, command economy,supply and demand
Questions (also attached):
1) What is economics?
2) What types of things are considered in economics? What is not?
3) What role does economics play in your personal decisions?
4) What are the advantages of a market versus a command economy?
1. What is the difference between the shift of and a movement along the demand curve?
2. What is the difference between the shift of and a movement along the supply curve?
3. How do shortages and surpluses develop?
4. What types of shortages and surpluses affect you either personally or in your work environment?
2. Answer the following questions:
a. What causes the changes in supply and demand?
b. How do shifts in supply and demand affect your decision making?
c. List four key points in the study of economics.