Q11 Each scenario below illustrates a basic underlying princ

Q11: Each scenario below illustrates a basic underlying principle of economics of how economies work through the interactions of individual choices. Please label each scenario accordingly.

* (                         ) The owner of a snow cone trailer realizes that the demand for snow cones is low during the winter, and thus, closes shop until the temperature warms back up near summertime.

* (                   ) The local river has so much pollution that three-eyed fish are forming. The government responds by regulating the amount of chemicals that can be dumped into the river.

* (                   ) At a high end restaurant, the restaurant owner has one chef at a meat station, one chef at a vegetable station and one chef, who has an artistic eye, plate the food they are given. The result is increased speed, as more customers get serviced during an evening.

* (                    ) During the summer, a bumper crop of oranges in Florida causes a surplus in the supply of oranges nationwide. As a result, prices fall to compensate for the surplus and civilians enjoy the fruits of the farmers labor.

(Governmment intervention )    (Market Efficiency)    (Specialization )      (Equilibrium)

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Q12:

      Suppose you are a freshmen in college and you have not declared a major. One reason you enrolled at your respective college was the school\\\'s vibrant social life. At the same time, you want to balance your academic life because you know that your grades will matter for graduate school or job applications

     You decide to forgo partying for 2 hours to study for an upcoming economics exam. In your first-semester, \\\"Principles of Economics\\\" class, you learn that the enjoyment you would have received from partying is an example of a(n)

1-(( equilibriu - specialization - incentive(s) - efficiency - opportunity cost(s) - equity - market failure))

   While in class, you realize that there are more people in the classroom than there are seats. Across the hall, you notice a large, empty lecture hall and wonder why the university is not operating at

2-(( equilibriu - specialization - incentive(s) - efficiency - opportunity cost(s) - equity - market failure ))   

      Your economics professor is attempting to recruit more students to major in economics. She argues and presents data showing economics majors develop skills valuable in private industry, government, and research. She also argues that they earn a relatively higher income than other majors. Your professor is presenting you with 3- ((equilibriu - specialization - incentive(s) - efficiency - opportunity cost(s) - equity - market failure )) to major in economics.

      You are assigned a final group project for your economics course. One member of your group is really good at finding resources for the project, one is really good at proofreading and editing, and you are really good at making a presentation. Based on this, you know that via   4-((equilibriu - specialization - incentive(s) - efficiency - opportunity cost(s) - equity - market failure))   you can complete the project more efficiently than if you all did each part together.

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(( equilibriu - specialization - incentive(s) - efficiency - opportunity cost(s) - equity - market failure ))

Solution

Q.11 Please label each scenario accordingly.

* (Market efficiency)

* (government intervention)

* specialization

* (equilibrium)

Q.12. Please label each scenario accordingly.

1. opportunity cost.

2. efficiency

3. incentives

4. efficiency

5. specialization.

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