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Assignment 2 1 According to Dr Williams in order to obtain more of something what is required Dr Williams states that in order to get more of something it requires the sacrifice of something else Nothing is free Is Why or why not 2 there such a thing as free libraries or free schools according to Williams William states that even though Consumers of these places may enjoy them at no price but that doesn t mean they re free If money wasn t saved up for public libraries schools and medical services those savings would be available for something else That something else sacrificed is the cost of public libraries schools and medical services 3 According to Dr Williams re wording of the law of demand a complete the following the higher the price cost of something the we take of it take of it The lower the price cost the more less we b No question c Due to the above list at least two things that might be expected to happen if the price of oil falls i People may start to travel more ii People may start to purchase more gas 4 According to Williams a if there were not scarcity would there be economic issues yes no economic issues no b Fill in the blank Scarcity simply means we all want more of something but there are not enough resources on earth to satisfy every want Rather than use violence to decide who gets things Williams said that the more 5 preferred method is the market mechanism According to him who gets things using the market mechanism Williams says that the people who are willing to bid the highest price gets the most out of using market mechanism Also identify whether the following are more closely associated with Micro or Macro economics 1 2 3 Macro Macro Micro The unemployment rate in the US was 4 5 in June 2018 The US inflation rate rose by 1 5 last year An unexpected plant fungus reduced the crop of tomatoes in California to decrease by one half 4 Micro Coca Cola corporation decides to introduce a major new diet drink 5 US Tariffs on imported goods form China were increased by 10 in to the market 2018 Macro 6 Micro Jim s hours were cut at work He will discuss how this might impact his family s budget with them at dinner tonight Also make sure that you have reviewed the concepts of Positive or Normative statements From the following explain whether or not they would be positive or normative statements Normative statement judging the temperature in the room The temperature 1 in your room is too warm 2 room Positive statement stating a fact about what the temperature is in the The temperature in your room is 82 degrees Fahrenheit 3 high Normative statement another opinion everyone may not think they are too US Federal taxes on the highest income earners are too high Positive statement this is fact based could look this up and it be true 4 Federal taxes on the highest income earners are currently set at 37 US Normative statement states what it should be not what it is US minimum 5 wage should be at least 15 per hour Positive statement this is a true factual statement on minimum wage 6 current US minimum wage for most workers is 7 25 per hour The Explain provide an example of how in your life you have achieved or attempted to achieve a level of efficiency or efficient use of resources as defined in your notes text Efficiency Effectiveness My first thought for an example was my car While it may be very how well something done how useful something is effective to transport from place to place and go long distances but my car does transport people due to how it uses fuel efficiently

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Auburn ECON 2020 - Assignment 2 Micro

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