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