Microeconomics - Standards M11 and M12 - Assignment #5

1.  Using  the typical 'Facebook' lingo, write a definition for Microeconomics and then provide a standard English translation for your 'Facebook' definition.
facebook- economic in a small part of the world.
standard- the branch of economics dealing with particular aspects of an economy, as the price-cost relationship of a firm.

1.  Using what you learned about the three functions of money, explain how 'play money' differs from 'real' money?
play money is not made by the government and cannot be used as a trade.
real money is made by the government and can be traded and used over and over again.

2. What would you accept in place of money, if someone wanted to 'buy' your most prized material possession?
my most prize possession is my bed.. but in place of my bed i would take a car.


1.  For each event described below, explain what happens to either the demand or supply curve. (increase/decrease?  Shifts left or right?)

(a) What happens to the demand for chicken if concerns about mad cow disease lead to widespread euthanizing of  cows on U.S. cattle farms?
decrease, left
(b) What happens to the supply of orange juice if Florida is hit with very severe weather?
decrease, left
(c) In the market for coffee, severe global weather systems destroy 30% of the coffee bean crop.
decrease, left
(d) In the market for cereal, if the price of cardboard material used to package cereal increases.
increase, right

2. For each part below,  EXPLAIN what happens to equilibrium quantity and price (increase or decrease?).

Microeconomics - Standards M11 and M12 - Assignment #5 - Due 9/17/2010

What is Microeconomics?

1.  Using  the typical 'Facebook' lingo, write a definition for Microeconomics and then provide a standard English translation for your 'Facebook' definition.

Title:  Role of Money - M11

1.  Using what you learned about the three functions of money, explain how 'play money' differs from 'real' money?

2.  Money has no actual value other than the value we attach to it. The barter system would still be practiced today if the participants did not agree to set a value on a piece of printed paper that represented the value of the goods and services they had to offer.  What would you accept in place of money, if someone wanted to 'buy' your most prized material possession? 

Circular Flow Model - M11

1.  What does a circular flow model tell us?
whats the role of every household, business, and gov.

2.  What is the role of households in the three sector circular flow model?
pay taxes, and payments.

3.  What is the role of businesses in the three sector circular flow model?
income/goods and service, and pay taxes.

4.  What is the role of government in the three sector circular flow model?
service/payments, and income

5.  What role do households have in the factors or resource market (inputs)?
income/goods and service

Title:  Law of Demand and Law of Supply - M12

1.  For each event described below, explain what happens to either the demand or supply curve. (increase/decrease?  Shifts left or right?)

2. For each part below,  EXPLAIN what happens to equilibrium quantity and price (increase or decrease?).

a)  In the market for doughnuts, if they were found to be a major contributor to high cholesterol in adults

decrease

b)  In the market for doughnuts, if widespread unemployment continues.

decrease

c) In the market for doughnuts, if Krispy Kreme introduces a new whole wheat 'low-calorie' doughnut.

increase

3.  What are two factors that can change the quantity demanded?  Provide an example for each.

if someone introduces a simular product. vcr/ dvd

if the price goes way up. gas prices

assignment 4

1. the economic goals of freedom, security, efficiency, equity, stability, and economic growth is achieved in a market economy by
2. the role of the gov has increased because there are limited supplies and unlimited wants and needs.
3. i disagree with the statement deruglation wont work because people are greety because you never know what will and what wont work unless you tey it. there was always greety people in the world but that didnt stop us from being where we are today.
4.  
5. the 6 functions are maintaing social fram work, providing public goods, maintaining competition, redistribution income, correcting for exteralities, and stabilizaing the economy.
6. the relationship that input and output have on productivity is that by when you make an output is so that you can get an input. you hope from the input you can make a profit.
7. investment in technology, education and capital good help productivity and economic growth because it makes the work go faster in less amount of time.
8. the us can jus stop producing more technology so that the companys need workers. 

assignment 4

the economic goals of freedom, security, efficiency, equity, stability, and economic growth is achieved in a market economy by

assignment 3...

1. the 3 basic economic questions are for whom, what, and how.
2. and econimic system is the system of production and distribution and consumption and four types are market, command, traditional, and mixed.
3. A market economy is the type of economy that the United States has and these questions are answered in the marketplace by the interaction of buyers and sellers. For example, the question of what to produce may be based on what trend is popular right now. The producer would create a product that they think would sell well to the public in hopes to make a profit. The question of how to produce is usually based on the producer's choice. They might decide to produce a product with more workers or they might decide to produce it more with machines and computers to save on labor costs. The question involving for whom to produce is based on the buyer who decides what they want or need and what price they are willing to pay for it.

A traditional economy is an economy that answers the three questions based on their social customs and how the society has dealt with these questions in the past. A country's customs can differ greatly to that of a neighboring country so traditional economies vary from one another.

A command economy is an economy where these questions are all answered by the government.     Rather than giving indviduals the chance to decide what they want or need, the government decides these  questions for the country. This type of economy is difficult for the individual because it is impossible for the government to know exactly what is best for each and every citizen.

A mixed economy is an economic system that answers the three questions both in the marketplace and in the government. Although the United States government plays a role in our economy, a mixed economy usually involves producers working closer with the government than they do in the United States so the US economic system is still a market economy.

    
4. The us is mixed because economy where some resources are allocated through the price or market mechanism and others are allocated by the state.

5. this is an example of a traditional economic system because every teacher teacher the same thing to every student every year.

ssef3

a) how do individuals and busineses specialize? they find their best item that they can sell for the lowest opp cost.
b) both parties have to gain from the voluntary exchange bacause if one party suffered, the trade would be useless.

production possibilities curve, rational decision making, and soecialization

• if i qwned a business it would tell me how good my production is and it could help me set goals for the future.
• two things that could cause my ppc to shift outward would be in crease in better technology and make more goods.

• the best way to determine if im making the rational econimic decision is to determine the opportunity cost.

• companies choose to specialize so they can produce goods at max efficientcey. they choose to trade so they can have a good they cant produce or because the opprotunity cost is low.

• i feel that this lession will hepl me in the future if i decide to become a company owner. this will help me to see what i need to do to make my company better.