Economics New Ways of Thinking solutions

Economics New Ways of Thinking
Some National Basketball Association (NBA) players receive annual incomes of several million dollars. Explain their high salaries in terms of supply and demand.

Economics New Ways of Thinking
Because scarcity exists, people must make choices. Explain why.

Economics New Ways of Thinking
Define: a. supply b. law of supply c. direct relationship d. quantity supplied e. supply curve f. supply schedule

Economics New Ways of Thinking
Define the following terms: a. scarcity b. opportunity cost c. economics d. want e. resource f. production possibilities frontier g. rationing device

Economics New Ways of Thinking
Define: a. investment bank b. dividend

Economics New Ways of Thinking
A producer makes 100 units of good X at $40 each. Under no circumstances will he sell the good for less than $40. Do you agree or disagree? Explain your answer.

Economics New Ways of Thinking
Use the term quantity supplied correctly in a sentence. Use the word supply correctly in a sentence.

Economics New Ways of Thinking
John is paid $7 an hour, and Kimsan is paid $23 an hour. In general, why does Kimsan earn more than John?

Economics New Ways of Thinking
Suppose the United States can produce either 90 apples and 20 oranges or 80 apples and 30 oranges.What is the opportunity cost of producing 1 apple?

Economics New Ways of Thinking
a. State the law of supply. b. Explain the direct relationship between the price of a good and the quantity supplied.

Economics New Ways of Thinking
If price were not used as a rationing device, would something else have to be used? If so, what might it be? Suppose that a local movie theatre decided to use something other than price to determine who got to see the latest movies. Devise a rationing device that would be fair to both moviegoers and

Economics New Ways of Thinking
Gallagher is planning on going to college in a few months. The tuition is $10,000 a year. Assuming that Gallagher goes to college for four years, is the opportunity cost of his attending college $40,000? Why or why not?

Economics New Ways of Thinking
What information did Charles Dow convey with the Dow Jones Industrial Average?

Economics New Ways of Thinking
Produced goods used for further production are referred to as ______.

Economics New Ways of Thinking
Define: a. exports b. imports c. balance of trade d. absolute advantage e. comparative advantage f. specialize

Economics New Ways of Thinking
What does it mean to say that country A has a comparative advantage in the production of computers?

Economics New Ways of Thinking
Suppose three McDonalds restaurants operate in your town, and each pays its employees $6 per hour. IfMcDonalds started paying $9 per hour to its employees,would more, fewer, or the same number of people want to work for McDonalds, according to the law of supply?

Economics New Ways of Thinking
Do all supply curves graphically represent the law of supply? Explain your answer.

Economics New Ways of Thinking
What does it mean to buy the market?

Economics New Ways of Thinking
Suppose that for 500 stocks, the share price of each stock rises on Monday. Does everyone in the stock market believe that stocks are headed even higher, since no one would buy a stock if he or she thought share prices were headed lower?