ECON212 CHS-1&2

Before you started applying for college, a job recruiter offered you a full-time cashier position at a department store, earning an after-tax salary of $23,000 per year. However, you turn down this offer and attend your first year of college. The addition

you value a year of college at more than $59,000
The opportunity cost of a choice includes both the monetary amount paid and the value of your time given up by making that choice over another. By turning down the cashier job (and going to college), you fo

Match each definition to its appropriate concept.

when economic benefits are distributed uniformly across the society-equality
when a society gets the most it can from its scarce resources -efficiency
Efficiency means that society is utilizing its scarce resources to attain the maximum possible benefits.

All societies face a trade-off between equality and efficiency.
If the United States government raises the income taxes on the wealthiest Americans, while increasing welfare payments to the poorest Americans, the result will likely bea decrease Correct in

When governments design policies aimed at increasing equality, society must also be prepared to accept a decrease in efficiency.
For example, if the U.S. government increases income taxes on the wealthiest Americans, and redistributes the resulting tax re

Because of the violent nature of the sport, professional American football players are at risk of suffering concussions (or brain injuries) during the violent collisions that occur between players during the game. Violent collisions involving hits to the

While the new helmetsdecrease Correct the probability of a concussion resulting from each individual collision, at the same time the new helmets could also give football players an incentive to play morerecklessly Correct , which could potentiallyincrease

Kate has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an accounting firm's website in exchange for someone doing their tax returns.
Which of the following principles of economic interaction

Trade can make everyone better off.
When tasks are divided according to who can provide them at the lowest cost, specialization occurs�which can lead to greater output. Economists refer to this concept as gains from trade.

Loggers are muchless Correct likely to supply wood to the market if property rights are not enforced.

Property rights are the ability of individuals to own and control their own scarce resources. The enforcement of property rights, usually through the police and court systems, is essential for markets to function efficiently, since in the absence of secur

A manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town downstream.
A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can

Manufacturing firm dumps chemical waste into river - Externality
There is only one car dealership in a small town - Market power
While markets, guided by the invisible hand, usually produce efficient outcomes, there are instances in which markets do not a