# Econ 2030 Recitation #1

 “By how much did employment change in the construction industry in the United States in July 2024 from its June 2024 level?” is an example of a _____ question. 1. microeconomic 2. macroeconomic 1. Microeconomic “By how much did employment change in the United States in July 2024 from its June 2024 level?” is an example of a _____ question. 1. microeconomic 2. macroeconomic 2. Macroeconomics “Employment continued to trend up in construction in July (+25,000), in line with the average monthly gain over the prior 12 months (+19,000)." [BLS, “Employment Situation Summary,” 02 Aug 2024] This quote is an example of a news item about a _____ issue. 1. microeconomic 2. macroeconomic 1. Microeconomics “Total nonfarm payroll employment in the United States edged up by 114,000 in July, below the average monthly gain of 215,000 over the prior 12 months." [BLS, “Employment Situation Summary,” 02 Aug 2024] This quote is an example of a news item about a _____ issue. 1. microeconomic 2. macroeconomic 2. Macroeconomics Suppose Preston decides to go fishing at Veronica Lake on his day off from work, but he faces a choice: he can fish the east, south, or west side of the lake.  His expected catch for the day is as follows: 5 fish on the east side, 3 fish on the south side, or 7 fish on the west side.  Everything else held constant, Preston’s benefit of fishing the east side of the lake is _____ fish. 1. -5 2. -2 3. 2 4. 3 5. 5 6. 7 7. 8 8. 10 9. 12 5. (5 fish) Suppose Preston decides to go fishing at Veronica Lake on his day off from work, but he faces a choice: he can fish the east, south, or west side of the lake.  His expected catch for the day is as follows: 5 fish on the east side, 3 fish on the south side, or 7 fish on the west side.  Everything else held constant, Preston’s opportunity cost of fishing the east side of the lake is _____ fish. 1. -5 2. -2 3. 2 4. 3 5. 5 6. 7 7. 8 8. 10 9. 12 6. (7 fish) Suppose Preston decides to go fishing at Veronica Lake on his day off from work, but he faces a choice: he can fish the east, south, or west side of the lake. His expected catch for the day is as follows: 5 fish on the east side, 3 fish on the south side, or 7 fish on the west side. Suppose further that Preston chose to fish the east side of the lake. Was Preston’s decision rational? Why or why not?  Explain. Not rational, because the benefit is less than the cost (he can get 7 fish on the west side compared to only 5 on the east). Suppose rational decision-maker Anna faces a choice: she can either see Scarlett O’Hanna or Beth Patterson in concert. Suppose further that tickets to see Scarlett are \$10 each, tickets to see Beth are free, and Anna has already purchased a non-exchangeable, non-refundable ticket to see Scarlett. 1. What is Anna’s benefit from seeing Scarlett in concert? 2. What is Anna’s opportunity cost of seeing Scarlett in concert? 3. What is Anna’s benefit from seeing Beth in concert?  4. What is Anna’s opportunity cost of seeing Beth in concert?  5. Which concert will Anna choose to attend? Why? Explain. 6. What is Anna’s sunk cost in making her decision? 1. Because sunk cost is irrelevant, Anna's benefit from seeing is the expected pleasure of Scarlett 2. Expected pleasure of seeing Beth. 3. Expected pleasure of seeing Beth 4. Expected pleasure of seeing Scarlett 5. Which ever concert will bring her higher pleasure. She already spend \$10 so it doesn't matter which concert she sees. 6. \$10 Suppose an online store sells pairs of shoes for \$30 each and is running a "buy two pairs, get a third pair for 50 percent off" sale. Suppose further that shipping costs \$10 per order but is free on all orders over \$50. 1. What was the marginal cost of the first pair of shoes? 2. What was the marginal cost of the second pair? 3. What was the marginal cost of the third pair? 1. 30+10= 40, 40-0= 40 2. Tot.Cost(2nd pair)= 30+60= 60, MargCost(2)= 60-40= 20 3. TC(3)= 60+15= 75, MC(3)= 65-60= 15 “The wine tasting was a perfect way to celebrate the end of an eventful first week in Rome” is an example of a _____ statement. A) Positive B) Normative B) Normative Positive= Evidence BasedNormative= Opinionated “Jeep-maker Stellantis is laying off 2,450 factory workers in Michigan, after deciding to end production of a Ram truck model at a factory that has been making pickups for decades." [WSJ, 16 Aug 2024] The preceding is an example of a _____ statement about a _____ issue. 1.positive; microeconomic 2.positive; macroeconomic 3.normative: microeconomic 4.normative; macroeconomic 1. Positive; microeconomic AuthorGoBroncos ID365667 Card SetEcon 2030 Recitation #1 Description Updated2024-09-04T02:56:56Z Show Answers