A household’s decision regarding whether or not to go on vacation Microeconomics- this is based off of an individual’s income iv. A worker’s decision regarding which job to accept Microeconomics- this involves an individual v. Designing government policies to address issues with the social security program Macroeconomics- Macroeconomics Xs a major part of the economy 2. Explain why each of the following is either a positive or normative economic statement. i. A 40-cent-per-pack tax on cigarettes will reduce teenage smoking by 10 percent. Positive it is what it is ii.
The federal government should spend more on diabetes research. Normative because it is what it should be. iii. Rising paper prices will increase book prices. Normative because this is what is normal. iv. The price of bagels at Bruegger’s is too high. Positive because it just is what it is 3. Identify the effect of each of the following on the United States Production Possibilities Frontier (PPF). Does it shift inward, outward, or not at all? i. A decrease in the average length of annual vacations This would be an inward curve because there is a decrease ii. An increase in immigration of foreign workers to the U. S.
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This would be an outward curve because its and increase iii. An increase in the average retirement age This would be an outward curve because it’s an increase. iv. The migration of skilled workers to Europe This would be in inward curve because it is a decrease. 4. Identify whether each Of the following would increase or decrease the opportunity costs for stay-at-home moms or dads (those who choose not to accept work outside the home). Briefly explain your answers. a. Higher unemployment rates. Decreases – because they are missing out on nothing by not working, but the opportunity cost goes down b. Lower average wages.
Decreases- because they do not have to worry ab0Ut the lower wage but the opportunity cost goes down b. Higher demand for labor. Increases- Because they have an increase inopportunity cost of staying home d. Lower income tax rates on wages earned. Increases- Because they have an increase in opportunity cost Directions for Submitting your Assignment Complete your Assignment in this Microsoft [email protected] document and save it as Username-MT445Assignment-Unit#. doc (Example:TAIlen-MT445Assignment- Unitl . doc). Submit your file by selecting the Unit 1 : Assignment Dropbox by the end of Unit 1. Content and Analysis Points Possible