Cost Benefit Analysis

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Module ONE If the x-axis is Quantity, and the y-axis is Price, what does line S1 represent? The supply of a product at time 1 --- The supply and demand curves show data for trendy smartphone covers. How would the graph change if the producer hired a popular actor as spokesperson for the product? Add D2 to the right of D, showing an increase in demand and increase in equilibrium price. --- Use the cost-benefit analysis table to answer the question: Should Clara work on the Fourth of July? A cost benefit table with two columns. The first column is labeled Cost and includes the statements: 1. Losing an opportunity for fun with friends; 2. Losing an opportunity to work on her tan, and 3. Getting tired from working extra…show more content…
--- When new technology for the more efficient production of peanut butter was implemented, the supply curve for peanut butter shifted to the right --- You choose to complete your homework rather than watch television so that you can earn a good grade. You made the choice with the lowest opportunity cost --- Magola makes baked goods for a living. She and a friend buy the ingredients, follow Magola's recipes, and sell cakes and cookies to neighbors. Cookies and cakes is the answer to which economic question(s)? What to produce? --- A console game, ZOMBIES!, has come out recently. It sells for $60. Which of these might lower the price of the game? A negative article about the game from a well-known reviewer, causing sales to drop --- Use the cost-benefit analysis table to answer the question: Should Mrs. Baxter allow her students to take an open-book test? Which of the following would best fill the blank space? Mrs. Baxter may have to reteach material. --- An increase in demand causes the demand curve to shift to the right --- When "bell-bottom" pants became fashionable in the 1970s, the demand curve for…show more content…
A deficit results when more money is spent than is taken in; a surplus results when more money is taken in than is spent. -- Buying securities in open market operations may promote economic growth because this action increases banks' cash, allowing for more loans and investment -- The Federal Reserve includes twelve regional banks -- Which is an example of the deregulation of a government-regulated natural monopoly? A new law allows consumers to choose between electricity providers -- The country of Lilliput has high unemployment and low consumer spending, and small businesses are closing. What should Lilliput's government do to improve the economy? Lower the income tax, which gives citizens more money to spend, and buy more services from civilian-owned businesses, which creates more jobs. -- In the diagram above, what will happen if the government sets the price for potatoes at point A? There will be a surplus of potatoes. -- The government sets the price of wheat for the coming year above the equilibrium price. What effect would this have on supply and demand? There will be more wheat produced than demand requires. -- Which is an example of a natural
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