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Economics Homework Thirteen Answers - Student One

2009-12-17T03:53:42Z

VeronikaF:

VeronikaF

1. Which is true about the average fixed costs (AFC) of a firm?
(a) a firm can eliminate these costs by shutting down in the short run.

(a) is the correct answer since in the short run there are many fixed costs, but in the long run there are only variable costs.

2. Some politicians complain about how people are losing their jobs to workers in China. Is this problem the result of "free trade" or "protectionism"?

Free trade, not protectionism, is causing people in the USA to lose their jobs to workers in China. Protectionism opposes trade between countries since people believe money is not everything and that trading with China is as if you were sharing your candy with your enemy. I personally think free trade is the way to go since it pushes each country to do what they do best and not waste their time on producing a certain good when they could more efficiently produce a different good. Trying to do another’s job will result in mistakes, an increase in transaction cost, and less consumer surplus.

3. What is one of the primary responsibilities of the Federal Reserve Bank?

The Federal Reserve Bank, an independent central bank, is in existence to adjust the discount rate - the interest that is charged to commercial banks.

4. Review: Suppose that after completing this course, you start a new company. In your first year, you "broke even" (had zero profits), and in your second year you want to increase your revenue and profits. After careful study of your market, you decide that you can increase your revenue by increasing your price. Therefore your good must be price elastic/inelastic (choose one).

To raise the price of your goods produced they must be inelastic, which means that the consumers will be willing to pay any price for that certain good.

6. You can go on www.orbitz.com and watch the price of airline tickets change from day-to-day. If you pick fixed dates of travel, such as Jan. 15 to fly somewhere and Jan. 18 to return, then you will notice that the closer you get to those dates, the higher the price of the ticket usually is. In other words, the earlier in advance that you can buy a ticket, the cheaper it usually is. Explain how this illustrates a basic difference between long run and short run costs.

Long run costs are variable unlike short run costs which are fixed. If you pay for the tickets before hand the price will be cheaper because there are so many airline companies to choose from, which causes it to be a variable cost. If you wait until the day before the flight to buy your tickets you will not have any other options except to buy that expensively priced ticket. The price of that ticket is fixed since you have no options or “variables” to choose otherwise. You are basically forced to pay an extra amount of money if you want that ticket since the quantity has decreases and the tickets are scarcer and, as we all know, when something become “limited” the price automatically increases since the value of that item increases.

Honors:

Answer question 8, and then 2 out of the following 3 questions:

8. Explain why in long-run equilibrium the price charged in monopolistic competition is greater than marginal cost but equal to average total cost.

The price is greater than marginal cost because the sales cost is not the lowest possible cost. There is competition and not a total monopoly over the common goods produced even though the company may have a monopoly over their “unique” goods they sell. By doing this, you will increase your profit but not necessarily give up the demand since, in monopolistic competition, there are not perfect substitutes. The price is also equal to average total cost because the firm should shut done if there are any long run losses, such as when price is greater than average cost.

9. Economics is sometimes called the “dismal science” because economists predicted population to grow faster than the food supply, marginal returns to diminish, and profits to vanish. But, in fact, there is an abundance of food and profits have not vanished. Why is economics not so dismal after all?

Most of these assumptions have not occurred but may come in existence in the future. We must not worry about what is to come eventually, but focus on the present so that catastrophe may not occur. If we spend all our time predicting and worrying we are losing opportunities to find a solution and in economics that is what you study. In economics you study the future and the possibilities that are available. Economics also shows how we must live our lives to the fullest and worry about today and not tomorrow. Economics is a type of science which instead of analyzing chemical equations and plant species, you dissect the art of business and make a cycle of money instead of a food chain. Economics is about studying what has brought the great empires into existence, including the one we live in today. Economics is the underlying truth of life as we see it.

10. "Protectionism" is a pejorative (negative) word. Can you think of a more positive, flattering word to express the same concept in a supportive way?

Nationalism could be the word to describe the same meaning as Protectionism, but in a more positive way since it means your nation is of primary importance. Protectionists want the U.S. companies to stay in their own country and hire American citizens instead of producing in China with Chinese laborers. They do not want the U.S. to trade with other countries and let them “steal” the jobs of American citizens. Protectionists believe that we should help our kind and not go strictly for cheaper production since money is not everything; they prefer isolation.

Economics Homework Thirteen Answers - Student One

2009-12-12T16:36:45Z

VeronikaF: Created page with 'VeronikaF'

VeronikaF

Economics Homework Twelve Answers - Student One

2009-12-10T02:55:10Z

VeronikaF:

VERONIKAF

1.A monopoly is one seller without any competitors. What is a "monopsony"?

Monopsony is one buyer without any competitors. In a monopsony a single customers has control over the market of a certain good since that customers would be the sole buyer.

2.Define, in your own words, what a "production possibilities curve" is.

A production possibilities curve, also known as a transformation curve, shows the amount of production for two goods that can be produced efficiently by a group or a single with limited resources. It shows the maximum amount of various outputs that a nation can produce in a fixed time on a graph.

3.Do you think that government policy should give high priority to the Lorenz curve? Explain the issue that a Lorenz curve addresses, and whether you think that should be a high priority of government economic policy.

Yes, since the Lorenz curve represents the distribution of income or relative poverty of each household. We definitely will not be able to help all the poor, but it is our responsibility to help those in need. Some may not agree that the government will do the best job since most of it is run by greed, but the government does bring people together. There will always be poor among us and the best we can do is to be there for them.

4. Look again at Figure A. What is the opportunity cost of shifting production from B to C?

Loss of 350 cars and 100 boats would be the opportunity cost of shifting production from B to C. By decreasing the companies output of cars and boats would lose the opportunity to make more of a profit. Wal-Mart is successful because they purchase and sell only immense amount of good. They run by the motto “Go big or Go home!” The more you produce the average total cost for each good becomes less with every other extra good produced.

6. Review: explain again what AFC, AVC and ATC are, and how they relate to each other. When should a firm shut down in the short run?

Average fixed cost is the total fixed cost divided by the quantity of output produced. Average variable cost is a firm’s variable cost divided by the quantity of all output produced. Average total cost is the total cost divided by the output produced. They are all related to each other since AVC+AFC=ATC. When AVC>P a firm shown shut down in the short run.

7. What is needed to reach point D in Figure A? (In other words, what causes a production possibilities curve to shift outward?)

You would have to increase the amount of boats by 50 and not change the amount of cars, in others a trade off in the amount of goods. The production possibility frontier of the goods would have to shift and the production and efficiency would have to increase for point D to be reached. The output of the goods must increase due to maybe an increase in workforce, advances in technology, and capital equipment available for businesses.

Honors:

Answer 3 out of 4 questions below:

8. Look again at Figure C in the lecture (the first graph in this Lecture). At what point is total revenue maximized?

Where marginal revenue meets marginal cost on the graph is the point where total revenue is maximized.

9. Explain why the production possibilities curve is convex (opening downward like the top of a circle) rather than concave (opening upward like the inside of a bowl) or a straight line.

Limited resources, a time frame, and efficiencies of scale result in a convex curve in the production possibilities curve. Because of limited resources, time, and efficiency, the quality of goods, the ability to react to new technology, and the efficiency of labor and production would decrease resulting in a loss of opportunity. A production possibilities curve is convex since it is always negative because it graphs the loss of opportunities that you could have used to benefit yourself and your business.

10. Suppose you are a monopsony, and you must pay $9 per hour ($9/hr) to hire nine workers, but in order to hire one more worker you must pay $10/hr. The tenth worker will bring in $15 extra per hour to the firm’s revenue. Do you hire the tenth worker?

No, because by hiring a tenth worker, the cost for labor would be greater than the total revenue. You would pay $81 for nine workers for one hour and for ten workers for an hour you would pay $100. The difference between those two costs is $19 which could not be paid for by the extra $15 earned by the tenth worker. You would be losing $4 each hour.

Economics Homework Twelve Answers - Student One

2009-12-06T21:33:30Z

VeronikaF: Created page with 'VERONIKAF IN PROGRESS'

VERONIKAF IN PROGRESS

Economics Homework Eleven Answers - Student One

2009-12-03T13:05:56Z

VeronikaF:

VeronikaF

Answer 5 out of 6:

1.If you were to loan someone money, why would you want him to pay you something extra (interest) when he pays back the loan? Give at least one reason.

I would want the borrower to pay me interest because it would pay for the lost opportunity of me using my money to earn more another way. Also, interest will help demonstrate that the borrower will be able to back your money including interest and not spend it recklessly, because the borrower would not agree to pay interest if he was planning not to use it wisely.

2.Suppose I loaned you $1000 today, and interest rates are 5% per year (compounded annually), and you repaid the loan plus interest in 2 years, then what is the total you would pay to satisfy this debt?

$1102.50

3.Review: is the cost of the bus for a trip to D.C. a "fixed cost" or a "variable cost"? Explain, assuming for the purpose of this question that one and only one bus can be used (in reality, we may have several buses).

The cost of a bus for a trip to D.C. would be a “fixed cost” since the price for the bus is ‘fixed’ and most likely will not change . Also, the price for the bus would not depend on how many passengers would ride to D.C. If we would pay for several buses it would be a variable cost since it would vary with the number of passengers.

4.Which concept in Economics do you think is the best self-motivator, which you might use to achieve more?

“Carpe Diem”, seize the day, motivates you to accomplish as much as you can in the time you are given. You would use your time wisely if it was to be your last day on earth. We do not take the possibility of not having the privilege of living tomorrow it seriously. So live each day to the fullest as if it were your last.

5.Pick another question from the midterm exam that you answered incorrectly, and explain the correct answer.

Question number 19 on the girl’s midterm exam,” When a firm shuts down and goes out of business, jobs are lost and that makes the community poorer. What else is always lost from the reduction input which also makes the society poorer?” asks what else does the public loose when a firm shuts down. The correct answer to this question is (B), consumer surplus, because there will be less competition for the widgets that they used to produce, which would increase the price for that certain good and reduce consumer surplus.
Honors

Answer 3 out of 4:

6.Explain what “economic rent” is in your own words, using your own example.
“Economic rent” is an excess amount of cost put in without increasing the input. The cost of business seats on an airplane is an economic rent because you pay more for them than economy seats but you do not receive more goods. The only thing you receive is better service and larger seats, but not an extra amount of goods.

7.An agreement by different firms with each other to reduce output is illegal. Why should that be illegal?

An agreement by different firms should be illegal because the firms could then settle on their own higher price for their goods without being limited by competition. This would result in higher prices for the widgets and the public would be forced to pay the high cost for these goods since all the firms would have the same price. The firms would have the ability to decide on the cost of their goods and control the market for that widget. This would eliminate all competition, which causes firms to decrease the prices of their goods to appeal to the public. The free market would be a past dream.

9. What is your favorite concept in Economics, and why?

Gresham’s law, bad drives out good, is one of my favorite concepts in the study of economics because it truly applies to our present society. As a seed cannot survive in unfertile land so good cannot thrive in bad. Also, bad money drives out good money because it attracts all of us since it is easier to gain and does not require as much work. When one person begins to do something bad or earn bad money, other people become more comfortable with that idea since someone else did it. It is basically a long chain reaction and all good is pushed away by the increasing “bad”.

Economics Homework Eleven Answers - Student One

2009-11-20T18:03:48Z

VeronikaF: Created page with 'VeronikaF in progress'

VeronikaF in progress

Economics Homework Ten Answers - Student One

2009-11-19T14:37:15Z

VeronikaF:

VeronikaF

1.In your own words, try to give a better definition of "externalities" than provided by this Lecture.

Externalities are either costs or benefits that someone receives without payment. Externalities may be good or bad depending on what the person receives. It basically is the result that affects someone other than the buyer and seller. Everything we do each day has a certain effect on everyone. We may not notice it, but we are like the game of dominos; we act upon each other.

2.Explain why marginal revenue must be zero when total revenue is maximized.

Marginal revenue must be zero because when the total revenue is maximized it cannot be increased any further. If marginal revenue was one (1) than total revenue would have to be greater than it is possible. Maximized means that it cannot be increased. It is as far as it goes. And if the marginal revenue were negative one (-1) than the total revenue could not be the highest it could.

3. What is your favorite question on the midterm exam that you answered incorrectly, and why is it your favorite?

My favorite midterm exam question that I got wrong is number 31 on the girl’s exam. The question asks what happens when demand for labor increases. The correct answer is that the product produced by that labor increases in price since the company is having a shortage of workers and has to hire “short term” laborers so their business will continue on. And since the company will have to pay more for that short run cost, they will have to increase the cost of the products that they produce. Until they find workers to fill the lack of laborers, they are going to be spending more money for that average widget produced.

4. Give an example of a positive externality, and an example of a negative externality. The example does not have to be limited to a business.

A positive externality is if your house was by an open field in which every night of the summer, a movie was projected on a large screen. You would not have to pay the admission fee to watch the movie because you could watch it from your back porch.

5. Explain why private firms in the free market are unlikely to try to provide public goods.

If private firms were to provide public goods they would be loosing opportunities of making money by selling those widgets privately. Public goods are for anyone and everyone who can get their hands on them. By providing private goods you are basically giving goods away when you could be selling them privately for a good amount of money. The reason private firms do not provide public goods in the free market is because they would be losing money. The reason for a business is to make money, not give it away.

6. Review question: the cross-elasticity of A with respect to B is positive, and C with respect to D is negative. What is the relationship (complement or substitute?) of goods A and B with each other, and C and D with each other? Explain.

Goods A and B would be substitutes since they are positive and goods C and D would be complements since they are negative. The reason substitutes are positive and complements are negative is that a substitute for a more expensive item gives the consumer a positive result, but a complement is just another expense for the consumer which gives a negative result.
Honors
Answer 3 out of the following 4 questions:

9. Provide, in your own words, the best definition of "public good" that you can.

A “public good” is a good that costs no extra expenses to enjoy.

10. Find a question on the midterm that describes a situation that would be unusual in the real world, and explain why the scenario of the question is unrealistic.

Question 21 on the girl’s midterm exam is an example of an unusual situation. Question 21 is a graph of perfect substitutes and in real life it is very unusual to have something that can perfectly substitute for another. Everything is different and one item that could make you as perfectly satisfied as another is almost unheard of.

11. Revisit the problem on the midterm about the price ceiling (with the graph), which asked how much the shortage would be. Provide the correct answer and explain why. (If you answered it correctly, then provide a similarly difficult substitute question for this.)

The shortage would be 600 units because if the price ceiling is set at $2, the minimum quantity is set at 200 units and the maximum quantity is set at 800 units. To find the surplus or shortage of goods in the market, we must find the distance between the two numbers by subtracting 200 units from 800 units. The result is a shortage of 600 units, the correct answer.

Economics Homework Ten Answers - Student One

2009-11-19T14:35:41Z

VeronikaF:

VeronikaF

1.In your own words, try to give a better definition of "externalities" than provided by this Lecture.

Externalities are either costs or benefits that someone receives without payment. Externalities may be good or bad depending on what the person receives. It basically is the result that affects someone other than the buyer and seller. Everything we do each day has a certain effect on everyone. We may not notice it, but we are like the game of dominos; we act upon each other.

2.Explain why marginal revenue must be zero when total revenue is maximized.

Marginal revenue must be zero because when the total revenue is maximized it cannot be increased any further. If marginal revenue was one (1) than total revenue would have to be greater than it is possible. Maximized means that it cannot be increased. It is as far as it goes. And if the marginal revenue were negative one (-1) than the total revenue could not be the highest it could.

3. What is your favorite question on the midterm exam that you answered incorrectly, and why is it your favorite?

My favorite midterm exam question that I got wrong is number 31 on the girl’s exam. The question asks what happens when demand for labor increases. The correct answer is that the product produced by that labor increases in price since the company is having a shortage of workers and has to hire “short term” laborers so their business will continue on. And since the company will have to pay more for that short run cost, they will have to increase the cost of the products that they produce. Until they find workers to fill the lack of laborers, they are going to be spending more money for that average widget produced.

4. Give an example of a positive externality, and an example of a negative externality. The example does not have to be limited to a business.

A positive externality is if your house was by an open field in which every night of the summer, a movie was projected on a large screen. You would not have to pay the admission fee to watch the movie because you could watch it from your back porch.

5. Explain why private firms in the free market are unlikely to try to provide public goods.

If private firms were to provide public goods they would be loosing opportunities of making money by selling those widgets privately. Public goods are for anyone and everyone who can get their hands on them. By providing private goods you are basically giving goods away when you could be selling them privately for a good amount of money. The reason private firms do not provide public goods in the free market is because they would be losing money. The reason for a business is to make money, not give it away.

6. Review question: the cross-elasticity of A with respect to B is positive, and C with respect to D is negative. What is the relationship (complement or substitute?) of goods A and B with each other, and C and D with each other? Explain.

Goods A and B would be substitutes since they are positive and goods C and D would be complements since they are negative. The reason substitutes are positive and complements are negative is that a substitute for a more expensive item gives the consumer a positive result, but a complement is just another expense for the consumer which gives a negative result.
Honors
Answer 3 out of the following 4 questions:

9. Provide, in your own words, the best definition of "public good" that you can.

A “public good” is a good that costs no extra expenses to enjoy.

10. Find a question on the midterm that describes a situation that would be unusual in the real world, and explain why the scenario of the question is unrealistic.

Question 21 on the girl’s midterm exam is an example of an unusual situation. Question 21 is a graph of perfect substitutes and in real life it is very unusual to have something that can perfectly substitute for another. Everything is different and one item that could make you as perfectly satisfied as another is almost unheard of.

11. Revisit the problem on the midterm about the price ceiling (with the graph), which asked how much the shortage would be. Provide the correct answer and explain why. (If you answered it correctly, then provide a similarly difficult substitute question for this.)

The shortage would be 600 units because if the price ceiling is set at $2, the minimum quantity is set at 200 units and the maximum quantity is set at 800 units. To find the surplus or shortage of goods in the market, we must find the ditance between the two numbers by subtracting 200 units from 800 units to find the shortage of units that applies to the graph. The result is the 600 units, the correct answer.

Economics Homework Ten Answers - Student One

2009-11-19T14:27:00Z

VeronikaF:

VeronikaF

1.In your own words, try to give a better definition of "externalities" than provided by this Lecture.

Externalities are either costs or benefits that someone receives without payment. Externalities may be good or bad depending on what the person receives. It basically is the result that affects someone other than the buyer and seller. Everything we do each day has a certain effect on everyone. We may not notice it, but we are like the game of dominos; we act upon each other.

2.Explain why marginal revenue must be zero when total revenue is maximized.

Marginal revenue must be zero because when the total revenue is maximized it cannot be increased any further. If marginal revenue was one (1) than total revenue would have to be greater than it is possible. Maximized means that it cannot be increased. It is as far as it goes. And if the marginal revenue were negative one (-1) than the total revenue could not be the highest it could.

3. What is your favorite question on the midterm exam that you answered incorrectly, and why is it your favorite?

My favorite midterm exam question that I got wrong is number 31 on the girl’s exam. The question asks what happens when demand for labor increases. The correct answer is that the product produced by that labor increases in price since the company is having a shortage of workers and has to hire “short term” laborers so their business will continue on. And since the company will have to pay more for that short run cost, they will have to increase the cost of the products that they produce. Until they find workers to fill the lack of laborers, they are going to be spending more money for that average widget produced.

4. Give an example of a positive externality, and an example of a negative externality. The example does not have to be limited to a business.

A positive externality is if your house was by an open field in which every night of the summer, a movie was projected on a large screen. You would not have to pay the admission fee to watch the movie because you could watch it from your back porch.

5. Explain why private firms in the free market are unlikely to try to provide public goods.

If private firms were to provide public goods they would be loosing opportunities of making money by selling those widgets privately. Public goods are for anyone and everyone who can get their hands on them. By providing private goods you are basically giving goods away when you could be selling them privately for a good amount of money. The reason private firms do not provide public goods in the free market is because they would be losing money. The reason for a business is to make money, not give it away.

6. Review question: the cross-elasticity of A with respect to B is positive, and C with respect to D is negative. What is the relationship (complement or substitute?) of goods A and B with each other, and C and D with each other? Explain.

Goods A and B would be substitutes since they are positive and goods C and D would be complements since they are negative. The reason substitutes are positive and complements are negative is that a substitute for a more expensive item gives the consumer a positive result, but a complement is just another expense for the consumer which gives a negative result.
Honors
Answer 3 out of the following 4 questions:

9. Provide, in your own words, the best definition of "public good" that you can.

A “public good” is a good that costs no extra expenses to enjoy.

10. Find a question on the midterm that describes a situation that would be unusual in the real world, and explain why the scenario of the question is unrealistic.

Question 21 on the girl’s midterm exam is an example of an unusual situation. Question 21 is a graph of perfect substitutes and in real life it is very unusual to have something that can perfectly substitute for another. Everything is different and one item that could make you as perfectly satisfied as another is almost unheard of.

11. Revisit the problem on the midterm about the price ceiling (with the graph), which asked how much the shortage would be. Provide the correct answer and explain why. (If you answered it correctly, then provide a similarly difficult substitute question for this.)

The shortage would be 600 units because if the price ceiling is set at $2, the minimum quantity is set at 200 units and the maximum quantity is set at 800 units. To find the surplus or shortage of goods in the market, we must subtract 200 units from 800 units to find the number of units that applies to the graph. The result is the 600 units, the correct answer.

Economics Homework Ten Answers - Student One

2009-11-19T14:22:10Z

VeronikaF:

VeronikaF

1.In your own words, try to give a better definition of "externalities" than provided by this Lecture.

Externalities are either costs or benefits that someone receives without payment. Externalities may be good or bad depending on what the person receives. It basically is the result that affects someone other than the buyer and seller. Everything we do each day has a certain effect on everyone. We may not notice it, but we are like the game of dominos; we act upon each other.

2.Explain why marginal revenue must be zero when total revenue is maximized.

Marginal revenue must be zero because when the total revenue is maximized it cannot be increased any further. If marginal revenue was one (1) than total revenue would have to be greater than it is possible. Maximized means that it cannot be increased. It is as far as it goes. And if the marginal revenue were negative one (-1) than the total revenue could not be the highest it could.

3. What is your favorite question on the midterm exam that you answered incorrectly, and why is it your favorite?

My favorite midterm exam question that I got wrong is number 31 on the girl’s exam. The question asks what happens when demand for labor increases. The correct answer is that the product produced by that labor increases in price since the company is having a shortage of workers and has to hire “short term” laborers so their business will continue on. And since the company will have to pay more for that short run cost, they will have to increase the cost of the products that they produce. Until they find workers to fill the lack of laborers, they are going to be spending more money for that average widget produced.

4. Give an example of a positive externality, and an example of a negative externality. The example does not have to be limited to a business.

A positive externality is if your house was by an open field in which every night of the summer, a movie was projected on a large screen. You would not have to pay the admission fee to watch the movie because you could watch it from your back porch.

5. Explain why private firms in the free market are unlikely to try to provide public goods.

If private firms were to provide public goods they would be loosing opportunities of making money by selling those widgets privately. Public goods are for anyone and everyone who can get their hands on them. By providing private goods you are basically giving goods away when you could be selling them privately for a good amount of money. The reason private firms do not provide public goods in the free market is because they would be losing money. The reason for a business is to make money, not give it away.

6. Review question: the cross-elasticity of A with respect to B is positive, and C with respect to D is negative. What is the relationship (complement or substitute?) of goods A and B with each other, and C and D with each other? Explain.

Goods A and B would be substitutes since they are positive and goods C and D would be complements since they are negative. The reason substitutes are positive and complements are negative is that a substitute for a more expensive item gives the consumer a positive result, but a complement is just another expense for the consumer which gives a negative result.
Honors
Answer 3 out of the following 4 questions:

9. Provide, in your own words, the best definition of "public good" that you can.

A “public good” is a good that costs no extra expenses to enjoy.

10. Find a question on the midterm that describes a situation that would be unusual in the real world, and explain why the scenario of the question is unrealistic.

Question 21 on the girl’s midterm exam is an example of an unusual situation. Question 21 is a graph of perfect substitutes and in real life it is very unusual to have something that can perfectly substitute for another. Everything is different and one item that could make you as perfectly satisfied as another is almost unheard of.

11. Revisit the problem on the midterm about the price ceiling (with the graph), which asked how much the shortage would be. Provide the correct answer and explain why. (If you answered it correctly, then provide a similarly difficult substitute question for this.)

The shortage would be 600 units because if the price ceiling is set at $2, the minimum quantity is set at 200 units and the maximum quantity is set at 800 units. To find the surplus or shortage of goods in the market, we must average theses numbers. The result is the 6600 units, the correct answer.

Economics Homework Ten Answers - Student One

2009-11-18T17:10:29Z

VeronikaF: Created page with 'VeronikaF in progress'

VeronikaF in progress

Economics Homework Nine Answers - Student Four

2009-11-12T16:07:14Z

VeronikaF:

VeronikaF

Read and, if necessary, reread the above lecture. Homework is lighter this week to give you a break after your studying last week.
Answer 4 out of these 5 questions:

1.Identify an industry not mentioned in the lecture that is an oligopoly, and explain why.

The laptop industry is an example of an oligopoly industry because there are not that many companies that produce laptops, it is difficult to start this business mostly because of money, and all the laptop companies sell similar goods. By owning a laptop company, you can make a lot of money, but if you were the only company that produced laptops, you could make much more. Because there are some competitors, laptop production is considered an oligopoly industry.

2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).

(A) Perfect competition- there is many buyers and sellers, perfect knowledge and mobility, and many substitutes.

(B) Perfectly Contestable Markets- you may be the only seller, but competition is always threatened.

(C) Oligopoly- few companies, high barriers to enter, similar goods.

(D) Cartel- an agreement between companies, which produce similar goods, that decreases supply and competition.

(E) Monopoly- when you own the whole market of a certain good. You are the only one that produces a certain widget (no competition).

3. Explain which specific type of industry (e.g., oligopoly or something else) each of these quotes probably refers to: (1) "She's the finest hair stylist in town; no one has her special style!", (2) "Crazy Eddie ... his low prices are INSANE!", (3) "Don't like his prices? He's the only one in town selling what you need."

(1) Monopolistic Competition, because there still is competition between similar industries but some have better “quality”.

(2) Perfectly Contestable Markets, because Eddie keeps his prices as low as possible due to the threat of competition.

(3) Monopoly, because it describes that there are no competitors to lower the price of the widget.

5. What prevents a monopoly from increasing its prices without limitation?
The Law of Demand perfectly applies to this answer because if an industry increases its price above what the consumer is willing pay, even if it is the only good available, they will stop buying until the price is decreased. A large portion of the population in the world is middle class and if the industry, which has a monopoly, increases its prices without limitation then only will the wealthy be able to afford their goods. When price increases demand increases.
Honors

6. Where is the Nash equilibrium for this set of options, where (x,y) represents the profits to (Firm A, Firm B)? Explain.

(50,50)

Nash equilibrium only exists when each player does not change their strategy while knowing the other opponents’ strategies. One person has to lose while the other gains, so by not changing your strategy you are playing it safe and not taking chances. There is a 50/50 chance of losing money for each and many industries do not want to take a chance that may led to bankruptcy. No one wants to take the first move.

After answering question 6, then answer two of these three questions:

7. Monopolies: should the government regulate them? Or is regulation worse?

As the Coase theorem illustrates, when government barges into the free market, complications and more transaction costs are the result. The government should let the invisible hand take care of it and not interfere. Great ruckus would occur if the government attempted to end a monopoly. It would cause industries to bankrupt because the more competition the more difficult it is to survive.

9. How does a monopolist maximize his profits?

He must increase his price to what the customers are willing to pay. He needs to direct his price to the middle class, the greatest amount of people, and the maximum they will pay. He must increase the price of each widget until MR=MC.

Economics Homework Nine Answers - Student Four

2009-11-12T16:06:44Z

VeronikaF:

VeronikaF

Read and, if necessary, reread the above lecture. Homework is lighter this week to give you a break after your studying last week.
Answer 4 out of these 5 questions:

1.Identify an industry not mentioned in the lecture that is an oligopoly, and explain why.

The laptop industry is an example of an oligopoly industry because there are not that many companies that produce laptops, it is difficult to start this business mostly because of money, and all the laptop companies sell similar goods. By owning a laptop company, you can make a lot of money, but if you were the only company that produced laptops, you could make much more. Because there are some competitors, laptop production is considered an oligopoly industry.

2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).

(A)Perfect competition- there is many buyers and sellers, perfect knowledge and mobility, and many substitutes.

(B) Perfectly Contestable Markets- you may be the only seller, but competition is always threatened.

(C) Oligopoly- few companies, high barriers to enter, similar goods.

(D) Cartel- an agreement between companies, which produce similar goods, that decreases supply and competition.

(E) Monopoly- when you own the whole market of a certain good. You are the only one that produces a certain widget (no competition).

3. Explain which specific type of industry (e.g., oligopoly or something else) each of these quotes probably refers to: (1) "She's the finest hair stylist in town; no one has her special style!", (2) "Crazy Eddie ... his low prices are INSANE!", (3) "Don't like his prices? He's the only one in town selling what you need."

(1) Monopolistic Competition, because there still is competition between similar industries but some have better “quality”.

(2) Perfectly Contestable Markets, because Eddie keeps his prices as low as possible due to the threat of competition.

(3)Monopoly, because it describes that there are no competitors to lower the price of the widget.

5. What prevents a monopoly from increasing its prices without limitation?
The Law of Demand perfectly applies to this answer because if an industry increases its price above what the consumer is willing pay, even if it is the only good available, they will stop buying until the price is decreased. A large portion of the population in the world is middle class and if the industry, which has a monopoly, increases its prices without limitation then only will the wealthy be able to afford their goods. When price increases demand increases.
Honors

6. Where is the Nash equilibrium for this set of options, where (x,y) represents the profits to (Firm A, Firm B)? Explain.

(50,50)

Nash equilibrium only exists when each player does not change their strategy while knowing the other opponents’ strategies. One person has to lose while the other gains, so by not changing your strategy you are playing it safe and not taking chances. There is a 50/50 chance of losing money for each and many industries do not want to take a chance that may led to bankruptcy. No one wants to take the first move.

After answering question 6, then answer two of these three questions:

7. Monopolies: should the government regulate them? Or is regulation worse?

As the Coase theorem illustrates, when government barges into the free market, complications and more transaction costs are the result. The government should let the invisible hand take care of it and not interfere. Great ruckus would occur if the government attempted to end a monopoly. It would cause industries to bankrupt because the more competition the more difficult it is to survive.

9. How does a monopolist maximize his profits?

He must increase his price to what the customers are willing to pay. He needs to direct his price to the middle class, the greatest amount of people, and the maximum they will pay. He must increase the price of each widget until MR=MC.

Economics Homework Nine Answers - Student Four

2009-11-12T16:06:22Z

VeronikaF:

VeronikaF

Read and, if necessary, reread the above lecture. Homework is lighter this week to give you a break after your studying last week.
Answer 4 out of these 5 questions:

1.Identify an industry not mentioned in the lecture that is an oligopoly, and explain why.

The laptop industry is an example of an oligopoly industry because there are not that many companies that produce laptops, it is difficult to start this business mostly because of money, and all the laptop companies sell similar goods. By owning a laptop company, you can make a lot of money, but if you were the only company that produced laptops, you could make much more. Because there are some competitors, laptop production is considered an oligopoly industry.

2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).

(A)Perfect competition- there is many buyers and sellers, perfect knowledge and mobility, and many substitutes.

(B) Perfectly Contestable Markets- you may be the only seller, but competition is always threatened.

(C) Oligopoly-few companies, high barriers to enter, similar goods.

(D) Cartel-an agreement between companies, which produce similar goods, that decreases supply and competition.

(E) Monopoly-when you own the whole market of a certain good. You are the only one that produces a certain widget (no competition).

3. Explain which specific type of industry (e.g., oligopoly or something else) each of these quotes probably refers to: (1) "She's the finest hair stylist in town; no one has her special style!", (2) "Crazy Eddie ... his low prices are INSANE!", (3) "Don't like his prices? He's the only one in town selling what you need."

(1) Monopolistic Competition, because there still is competition between similar industries but some have better “quality”.

(2) Perfectly Contestable Markets, because Eddie keeps his prices as low as possible due to the threat of competition.

(3)Monopoly, because it describes that there are no competitors to lower the price of the widget.

5. What prevents a monopoly from increasing its prices without limitation?
The Law of Demand perfectly applies to this answer because if an industry increases its price above what the consumer is willing pay, even if it is the only good available, they will stop buying until the price is decreased. A large portion of the population in the world is middle class and if the industry, which has a monopoly, increases its prices without limitation then only will the wealthy be able to afford their goods. When price increases demand increases.
Honors

6. Where is the Nash equilibrium for this set of options, where (x,y) represents the profits to (Firm A, Firm B)? Explain.

(50,50)

Nash equilibrium only exists when each player does not change their strategy while knowing the other opponents’ strategies. One person has to lose while the other gains, so by not changing your strategy you are playing it safe and not taking chances. There is a 50/50 chance of losing money for each and many industries do not want to take a chance that may led to bankruptcy. No one wants to take the first move.

After answering question 6, then answer two of these three questions:

7. Monopolies: should the government regulate them? Or is regulation worse?

As the Coase theorem illustrates, when government barges into the free market, complications and more transaction costs are the result. The government should let the invisible hand take care of it and not interfere. Great ruckus would occur if the government attempted to end a monopoly. It would cause industries to bankrupt because the more competition the more difficult it is to survive.

9. How does a monopolist maximize his profits?

He must increase his price to what the customers are willing to pay. He needs to direct his price to the middle class, the greatest amount of people, and the maximum they will pay. He must increase the price of each widget until MR=MC.

Economics Homework Nine Answers - Student Four

2009-11-12T16:05:22Z

VeronikaF:

VeronikaF

Read and, if necessary, reread the above lecture. Homework is lighter this week to give you a break after your studying last week.
Answer 4 out of these 5 questions:

1.Identify an industry not mentioned in the lecture that is an oligopoly, and explain why.

The laptop industry is an example of an oligopoly industry because there are not that many companies that produce laptops, it is difficult to start this business mostly because of money, and all the laptop companies sell similar goods. By owning a laptop company, you can make a lot of money, but if you were the only company that produced laptops, you could make much more. Because there are some competitors, laptop production is considered an oligopoly industry.

2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).

(A)Perfect competition- there is many buyers and sellers, perfect knowledge and mobility, and many substitutes.

(B) Perfectly Contestable Markets- you may be the only seller, but competition is always threatened.

(C) Oligopoly-few companies, high barriers to enter, similar goods.

(D) Cartel-an agreement between companies, which produce similar goods, that decreases supply and competition.

(E) Monopoly-when you own the whole market of a certain good. You are the only one that produces a certain widget (no competition).

3. Explain which specific type of industry (e.g., oligopoly or something else) each of these quotes probably refers to: (1) "She's the finest hair stylist in town; no one has her special style!", (2) "Crazy Eddie ... his low prices are INSANE!", (3) "Don't like his prices? He's the only one in town selling what you need."

(1) Monopolistic Competition, because there still is competition between similar industries but some have better “quality”.

(2) Perfectly Contestable Markets, because Eddie keeps his prices as low as possible due to the threat of competition.

(3)Monopoly, because it describes that there are no competitors to lower the price of the widget.

5. What prevents a monopoly from increasing its prices without limitation?
The Law of Demand perfectly applies to this answer because if an industry increases its price above what the consumer is willing pay, even if it is the only good available, they will stop buying until the price is decreased. A large portion of the population in the world is middle class and if the industry, which has a monopoly, increases its prices without limitation then only will the wealthy be able to afford their goods. When price increases demand increases.
Honors

6. Where is the Nash equilibrium for this set of options, where (x,y) represents the profits to (Firm A, Firm B)? Explain.

(50,50)

Nash equilibrium only exists when each player does not change their strategy while knowing the other opponents’ strategies. One person has to lose while the other gains, so by not changing your strategy you are playing it safe and not taking chances. There is a 50/50 chance of losing money for each and many industries do not want to take a chance that may led to bankruptcy.

After answering question 6, then answer two of these three questions:

7. Monopolies: should the government regulate them? Or is regulation worse?

As the Coase theorem illustrates, when government barges into the free market, complications and more transaction costs are the result. The government should let the invisible hand take care of it and not interfere. Great ruckus would occur if the government attempted to end a monopoly. It would cause industries to bankrupt because the more competition the more difficult it is to survive.

9. How does a monopolist maximize his profits?

He must increase his price to what the customers are willing to pay. He needs to direct his price to the middle class, the greatest amount of people, and the maximum they will pay. He must increase the price of each widget until MR=MC.

Economics Homework Nine Answers - Student Four

2009-11-12T16:03:04Z

VeronikaF: Created page with 'VeronikaF'

VeronikaF

Economics Homework Seven Answers - Student One

2009-10-28T14:54:41Z

VeronikaF:

VeronikaF

1.Identify the four elements of perfect competition.

(a)Many buyers and sellers
(b) Goods that are perfect substitutes
(c) Perfect Knowledge
(d) Perfect Mobility

2. Describe how you might use competition, perhaps even competing with yourself, to motivate you to achieve more.

Competition is what brings the best effort out of all of us, but sadly sometimes not the best attitude. Competition is the effort of trying to win. By winning a contest of some sort, we feel happy and proud that we could do a certain thing better than another. It gives us a sense of well-being and self assurance that we are great. Some people compete because they feel the need to prove to the world that they are good enough. Competition also helps motivate ourselves to do better in our work and play. We do the best we can when we are competing with another. Competition is a wonderful thing, but when it gets out of hand horrible things can occur because people are then blinded and put all else aside to gain victory.

3. We are going to have our midterm in two weeks. Think of a question that you would like to see answered or clarified at the next class.

I would like to know more about MC, MR, AVR, and VC and how price and quantity affects it. I would also appreciate to more deeply understand income, cross, and price elasticity and how to find them by using mathematical equations. The Coase Theorem is another term about which I am lacking in understanding.

4. Do you think the converse of Gresham's Law is true with respect to speech and conversation, such that good speech or conversation (such as discussing the Bible) drives out bad? Explain.

In my personal experience, Gresham’s Law does correctly apply to speech and conversation. When groups of friend are talking about respectful subjects with one another there is no need to speak rudely. Some people feel the need to impress others by speaking about bad subject because they think that is “cool” and by doing this they prove to the others they do not care about their spiritual needs. Speaking rudely is a consolation to them because they make good people feel uncomfortable which they have suffered from many times. It is like a circle that goes on forever. When someone is hurt they spread their anger by hurting other people physically or verbally. And when people speak disrespectfully they drive out the good and evil takes its place. If everyone made an effort and spoke respectfully in every conversation, I believe there would be a lot less evil and hurt people in the world. Also part of it is peer pressure. When your friends start having a bad conversation you join in because you may not have the will to leave and begin a different and good conversation with another group of friends.

5. Explain the difference between total cost, average cost, and marginal cost.

Total cost is the amount that you must pay for the cost of production of a good. Average cost is the total cost divided by the quantity. Marginal cost is the change in total cost when the quantity that is produced is increased or decreased by one more unit.

7. Is there perfect competition between homeschooling and public schools? If not, explain the imperfections.
Homeschooling and public schools are not perfect competition because they have different aspects that the others do not.
For perfect competition each side must be equal to another (no advantage). In homeschooling, both the students and the teachers (mostly patents) benefit from the studies they learn every day, but in public school not everyone benefits from the work since the teachers have been teaching the same subjects for years. Also, homeschooling allows the students to think independently and to take control of problems, but in public school the teachers and the staff are the ones who control everything. In public school, the students are able to converse and enjoy some time with their peers every day, but in homeschooling it takes more incentive to socialize. In public schools, the students can enroll in different activities that are difficult for homeschoolers to create by themselves. Overall, homeschooling is better than public school in building a strong character as students are forced to solve their own problems and to create ideas on their own. This prepares them for the real world where you are all on your own. Both homeschooling and public schools have pros and cons and since they are unequal they cannot be perfect competition.
Honors
8. Define the term "competition" in a new way by using another powerful term developed in this course.

Competition is the rivalry between two sides which brings out the best ability from each. Competition is very similar to the phrase “Time is Money” because when people compete with each other they lose no time in trying to beat the other. They know that time that is wasted could have been their ticket to victory. The phrase, “Time is Money", is much like competition because by not wasting time you are benefitting yourself. In competition, people fight constantly to be ahead of each other. Both Competition and the phrase “Time is Money” are terms that refer to our everyday life.

9. Suppose the underlying labor market is perfectly competitive, but there is a minimum wage above the market rate. Then suppose that the supply of labor increases. Explain what the result is and why.
There would be an increase in competition since there will be more “contestants”. People will basically be fighting for their jobs because if someone fails to do what they are paid for there will always be someone ready to take their place. The jobs that are paid only the minimum wage are some of the easiest jobs to do, but not always the easiest to get. These jobs are the base for all successful businesses and there are many of them. Also, if the supply of labor increases, the minimum wage may be decreased since more people are willing to work for less.

10. What is the firm's profit or loss when Q=0 in the honors discussion above? (Answer simply in terms of another cost measure.) Is the firm profitable?

The firm’s profit is the money that is saved from not continuing doing business. The firm obviously is not profitable because they shut down. If the firm continued to do business it would continually lose money instead of collecting as much as it could and then shutting down. So, by closing, they are being smart and escaping the situation in which they would be losing money by staying open.

Economics Homework Seven Answers - Student One

2009-10-28T14:45:01Z

VeronikaF:

VeronikaF

1.Identify the four elements of perfect competition.

(a)Many buyers and sellers
(b) Goods that are perfect substitutes
(c) Perfect Knowledge
(d) Perfect Mobility

2. Describe how you might use competition, perhaps even competing with yourself, to motivate you to achieve more.

Competition is what brings the best effort out of all of us, but sadly sometimes not the best attitude. Competition is the effort of trying to win. By winning a contest of some sort, we feel happy and proud that we could do a certain thing better than another. It gives us a sense of well-being and self assurance that we are great. Some people compete because they feel the need to prove to the world that they are good enough. Competition also helps motivate ourselves to do better in our work and play. We do the best we can when we are competing with another. Competition is a wonderful thing, but when it gets out of hand horrible things can occur because people are then blinded and put all else aside to gain victory.

3. We are going to have our midterm in two weeks. Think of a question that you would like to see answered or clarified at the next class.

I would like to know more about MC, MR, AVR, and VC and how price and quantity affects it. I would also appreciate to more deeply understand income, cross, and price elasticity and how to find them by using mathematical equations. The Coase Theorem is another term about which I am lacking in understanding.

4. Do you think the converse of Gresham's Law is true with respect to speech and conversation, such that good speech or conversation (such as discussing the Bible) drives out bad? Explain.

In my personal experience, Gresham’s Law does correctly apply to speech and conversation. When groups of friend are talking about respectful subjects with one another there is no need to speak rudely. Some people feel the need to impress others by speaking about bad subject because they think that is “cool” and by doing this they prove to the others they do not care about their spiritual needs. Speaking rudely is a consolation to them because they make good people feel uncomfortable which they have suffered from many times. It is like a circle that goes on forever. When someone is hurt they spread their anger by hurting other people physically or verbally. And when people speak disrespectfully they drive out the good and evil takes its place. If everyone made an effort and spoke respectfully in every conversation, I believe there would be a lot less evil and hurt people in the world. Also part of it is peer pressure. When your friends start having a bad conversation you join in because you may not have the will to leave and begin a different and good conversation with another group of friends.

5. Explain the difference between total cost, average cost, and marginal cost.

Total cost is the amount that you must pay for a certain good. Average cost is the average price of a certain good. Marginal cost is the price of a good that is created by an extra worker.

7. Is there perfect competition between homeschooling and public schools? If not, explain the imperfections.
Homeschooling and public schools are not perfect competition because they have different aspects that the others do not.
For perfect competition each side must be equal to another (no advantage). In homeschooling, both the students and the teachers (mostly patents) benefit from the studies they learn every day, but in public school not everyone benefits from the work since the teachers have been teaching the same subjects for years. Also, homeschooling allows the students to think independently and to take control of problems, but in public school the teachers and the staff are the ones who control everything. In public school, the students are able to converse and enjoy some time with their peers every day, but in homeschooling it takes more incentive to socialize. In public schools, the students can enroll in different activities that are difficult for homeschoolers to create by themselves. Overall, homeschooling is better than public school in building a strong character as students are forced to solve their own problems and to create ideas on their own. This prepares them for the real world where you are all on your own. Both homeschooling and public schools have pros and cons and since they are unequal they cannot be perfect competition.
Honors
8. Define the term "competition" in a new way by using another powerful term developed in this course.

Competition is the rivalry between two sides which brings out the best ability from each. Competition is very similar to the phrase “Time is Money” because when people compete with each other they lose no time in trying to beat the other. They know that time that is wasted could have been their ticket to victory. The phrase, “Time is Money", is much like competition because by not wasting time you are benefitting yourself. In competition, people fight constantly to be ahead of each other. Both Competition and the phrase “Time is Money” are terms that refer to our everyday life.

9. Suppose the underlying labor market is perfectly competitive, but there is a minimum wage above the market rate. Then suppose that the supply of labor increases. Explain what the result is and why.
There would be an increase in competition since there will be more “contestants”. People will basically be fighting for their jobs because if someone fails to do what they are paid for there will always be someone ready to take their place. The jobs that are paid only the minimum wage are some of the easiest jobs to do, but not always the easiest to get. These jobs are the base for all successful businesses and there are many of them. Also, if the supply of labor increases, the minimum wage may be decreased since more people are willing to work for less.

10. What is the firm's profit or loss when Q=0 in the honors discussion above? (Answer simply in terms of another cost measure.) Is the firm profitable?

The firm’s profit is the money that is saved from not continuing doing business. The firm obviously is not profitable because they shut down. If the firm continued to do business it would continually lose money instead of collecting as much as it could and then shutting down. So, by closing, they are being smart and escaping the situation in which they would be losing money by staying open.

Economics Homework Seven Answers - Student One

2009-10-25T20:22:23Z

VeronikaF: Created page with 'VeronikaF in progress'

VeronikaF in progress

Economics Homework Six Answers - Student Three

2009-10-25T20:20:42Z

VeronikaF:

VeronikaF

1.Fixed costs can be easily identified by seeing what the total costs are when output is _______. Separately, give an example of a variable cost.

Fixed costs can be easily identified by seeing what the total costs are when output is zero.
Examples of variable costs are labor, packaging, and raw materials, because they change in relation to the output unlike fixed costs.

:Superb.

2.The Lecture mentioned how a prior student in this course is paying her way through college by working as a waitress in a fancy Manhattan restaurant. Suppose her boss told her one day, "We were profitable last month. To increase our profits next month, I'm going to double our number of waitresses so that we can serve more people!" But our former economics student told him that his plan would fail because there is _____________ returns of scale in the restaurant, because more waitresses would result in more wasted time talking to each other and waitresses getting in the way of each other.

Diminishing (marginal) returns, for if you continually increase your input eventually your output will decrease.

:Correct!

3.Give an example of a "short run" cost for a firm, and give an example of a "long run" cost. This can refer to any type of firm, from a grocery store to a baseball team to a homeschool.

At a law firm a “short run” cost would be hiring someone overtime to complete a vital document that is needed for the next day’s early, important meeting. An example of a “long run” cost, which is cheaper and more efficient, would be to hire an extra person so that work would get done faster and that the incident of having to pay overtime for someone would not occur.

:Superb.

4.Suppose you own a mechanics' shop that fixes cars, and you have 4 employees whom you pay $12 per hour. On average your 4th employee can fix 3 cars an hour. What is your marginal product (MP) and marginal cost (MC), and what is the minimum on average that you need to charge customers (your marginal revenue) for fixing cars? (Assume your only cost is labor, and the customer pays the cost of any parts.)

The marginal product is 3, the marginal cost is $4, and the marginal revenue is $4.

:Right for MP, but need units on the numbers. I.e., MP=3 cars per hour of labor. MC=$12 per hour, or $4 per car as you say. What must MR be? MR=MC, so $4 as you say. Well done. My answers are not so realistic because auto shops charge much more than that for labor!

5.Earlier in this course we learned that someone who obtains a college degree earns, over the course of his life, about $500,000 more than someone who does not. How can you explain this fact in terms of the advantages of "long run" costs over "short run" costs?

Obstacles in your life could hold you back if you did not have a college degree. First, you will be more appealing for a higher paying job than a high school graduate and you will also have more experience and knowledge about the world and how it works. Overall, going to college will help make your life a bit easier and more efficient since you will have the knowledge and power when troubles come your way. By earning a college degree, you have an advantage over the person who only went to high school and not to college. You will be able to surmount difficult situations. Spending the money, the “long run” costs, and going to college is cheaper in the long run than not spending the money and not going to college. You will not be able to earn as much as a college graduate, and this lost income will, in the end, be greater than the original price for the college education.

:Superb.

7.Suppose you own and drive a taxicab, and its annual license fee is $1000 per year. Suppose you learn that the license fee will increase to $1200 next year. Does this increase either increase, decrease, or have no effect on (a) marginal cost, (b) average variable cost, and (c) average total cost?

(A) increase
(B) no effect
(C) increase

:(A) is "no effect." The MC is a per cab-rider cost. It is unaffected. Other answers are correct. (Minus 1).

8.Suppose you could earn $8 an hour. Instead, you watch television for an hour. What is your accounting profit or loss, and what is your economic profit or loss, for that hour?

Your accounting loss is zero and your economic loss is $8 because instead of wasting an hour watching TV you could have earned $8 by working. For some people an hour of TV is worth $8 dollars, but in the long run, they are losing money and efficiency because they are wasting time watching TV. They could have been doing something that benefits themselves and others instead of sitting in front of the TV mesmerized and doing nothing.

:Terrific.

Honors

Provide brief answers to any four of the following five questions':

9. Suppose there is a sudden increase in the market price for a firm's widget. The firm will hire more employees to produce more output until the point where the value of its marginal product of labor equals its _____________. [Hint: the answer is NOT simply "marginal cost"].

Average product of labor

:Nope. MR must equal MC, and the analogous "value of the marginal product of labor" (the revenue from that marginal increase in labor) must be equal to its marginal cost of that extra labor, which is the '''wage rate'''. (Minus 2)

11. Are "long run" average costs lower than "short run" average costs and, if so, why?
At present, “short run” average costs are cheaper but if you are planning for the future “long run” average costs are cheaper because overtime fees come with “short run” costs, which cause “short run” costs to be cheaper overall than “long run” costs. For example, let’s say you decided to buy cheap windows that have no insulation. They may be cheaper than the insulated windows, which are more than twice the price, but since they have no insulation, they will not retain the heat in your house in the winter or retain the cool air in the summer. Your bills for heating and air conditioning will increase and over the next five years, the price for the cheaper windows will level out to the price of the more expensive insulated windows. In addition, by spending extra money you will save time and trouble. “Long run” costs are cheaper and more efficient that “short run” costs.

:Correct with the conclusion, but the first sentence seemed to incorrectly state the opposite.

12. (Difficult, but try): Your firm seeks to produce a certain level of output in the most efficient way (the lowest cost). It should use its resources in which of the following ways:

(d) use resources such that their marginal products per unit cost are equal

:Free pass on question.

13. Charity, revisited: Sloan's charitable efforts (Sloan-Kettering) have lasted longer than his business efforts (General Motors). Is this just by chance, or are there reasons why charity lasts longer than business? Feel free to revisit the issue of the interplay between the free market and charity.

Charity lasts longer than businesses because they have the support of God and people because everyone feels good when they donate money for a cause. They feel important that they can help others who are in desperate need. In many businesses, it is common that corruption and fraud are behind many deals. The common reason for businesses to exist is to gain a profit, but charity is in existence solely for others’ well-being. Our conscience is what leads us to do good things and ignore all evil. God made us as perfect beings but we were led away by temptation. We lost the gifts that God had given us and charity is a way for us to give back to God and repent for the things we have done. In all of us, there is a desire to do something good.

:Good analysis of charity.

14. The most efficient "division of labor" in the world is ... traditional marriage between a man and woman.

Traditional marriage between a man and a woman is the most efficient “division of labor” because together a man and a woman combine into one and each other’s talents make up for the other’s deficiences. Both man and wife divide their work so that each one uses their talents most efficiently. The relationship between a man and his wife cause each other to make sacrifices for the other, which a co-worker may not be willing to do. God created his perfect relationship between a man and a woman so that people may live in harmony and efficiency.

:Superb. Plus 3.

:107/110, plus 3 for a total of 110/110. Congratulations!!!--[[User:Aschlafly|Andy Schlafly]] 19:47, 24 October 2009 (EDT)

Economics Homework Six Answers - Student Three

2009-10-24T17:09:59Z

VeronikaF:

VeronikaF

1.Fixed costs can be easily identified by seeing what the total costs are when output is _______. Separately, give an example of a variable cost.

Fixed costs can be easily identified by seeing what the total costs are when output is zero.
Examples of variable costs are labor, packaging, and raw materials, because they change in relation to the output unlike fixed costs.

2.The Lecture mentioned how a prior student in this course is paying her way through college by working as a waitress in a fancy Manhattan restaurant. Suppose her boss told her one day, "We were profitable last month. To increase our profits next month, I'm going to double our number of waitresses so that we can serve more people!" But our former economics student told him that his plan would fail because there is _____________ returns of scale in the restaurant, because more waitresses would result in more wasted time talking to each other and waitresses getting in the way of each other.

Diminishing (marginal) returns, for if you continually increase your input eventually your output will decrease.

3.Give an example of a "short run" cost for a firm, and give an example of a "long run" cost. This can refer to any type of firm, from a grocery store to a baseball team to a homeschool.

At a law firm a “short run” cost would be hiring someone overtime to complete a vital document that is needed for the next day’s early, important meeting. An example of a “long run” cost, which is cheaper and more efficient, would be to hire an extra person so that work would get done faster and that the incident of having to pay overtime for someone would not occur.

4.Suppose you own a mechanics' shop that fixes cars, and you have 4 employees whom you pay $12 per hour. On average your 4th employee can fix 3 cars an hour. What is your marginal product (MP) and marginal cost (MC), and what is the minimum on average that you need to charge customers (your marginal revenue) for fixing cars? (Assume your only cost is labor, and the customer pays the cost of any parts.)

The marginal product is 3, the marginal cost is $4, and the marginal revenue is $4.

5.Earlier in this course we learned that someone who obtains a college degree earns, over the course of his life, about $500,000 more than someone who does not. How can you explain this fact in terms of the advantages of "long run" costs over "short run" costs?

Obstacles in your life could hold you back if you did not have a college degree. First, you will be more appealing for a higher paying job than a high school graduate and you will also have more experience and knowledge about the world and how it works. Overall, going to college will help make your life a bit easier and more efficient since you will have the knowledge and power when troubles come your way. By earning a college degree, you have an advantage over the person who only went to high school and not to college. You will be able to surmount difficult situations. Spending the money, the “long run” costs, and going to college is cheaper in the long run than not spending the money and not going to college. You will not be able to earn as much as a college graduate, and this lost income will, in the end, be greater than the original price for the college education.

7.Suppose you own and drive a taxicab, and its annual license fee is $1000 per year. Suppose you learn that the license fee will increase to $1200 next year. Does this increase either increase, decrease, or have no effect on (a) marginal cost, (b) average variable cost, and (c) average total cost?

(A) increase
(B) no effect
(C) increase

8.Suppose you could earn $8 an hour. Instead, you watch television for an hour. What is your accounting profit or loss, and what is your economic profit or loss, for that hour?

Your accounting loss is zero and your economic loss is $8 because instead of wasting an hour watching TV you could have earned $8 by working. For some people an hour of TV is worth $8 dollars, but in the long run, they are losing money and efficiency because they are wasting time watching TV. They could have been doing something that benefits themselves and others instead of sitting in front of the TV mesmerized and doing nothing.

Honors

Provide brief answers to any four of the following five questions':

9. Suppose there is a sudden increase in the market price for a firm's widget. The firm will hire more employees to produce more output until the point where the value of its marginal product of labor equals its _____________. [Hint: the answer is NOT simply "marginal cost"].

Average product of labor

11. Are "long run" average costs lower than "short run" average costs and, if so, why?
At present, “short run” average costs are cheaper but if you are planning for the future “long run” average costs are cheaper because overtime fees come with “short run” costs, which cause “short run” costs to be cheaper overall than “long run” costs. For example, let’s say you decided to buy cheap windows that have no insulation. They may be cheaper than the insulated windows, which are more than twice the price, but since they have no insulation, they will not retain the heat in your house in the winter or retain the cool air in the summer. Your bills for heating and air conditioning will increase and over the next five years, the price for the cheaper windows will level out to the price of the more expensive insulated windows. In addition, by spending extra money you will save time and trouble. “Long run” costs are cheaper and more efficient that “short run” costs.

12. (Difficult, but try): Your firm seeks to produce a certain level of output in the most efficient way (the lowest cost). It should use its resources in which of the following ways:

(a) use materials that generate the highest marginal product
(b) use materials that have increasing returns to scale
(c) use as much material as possible until there are diminishing returns
(d) use resources such that their marginal products per unit cost are equal

13. Charity, revisited: Sloan's charitable efforts (Sloan-Kettering) have lasted longer than his business efforts (General Motors). Is this just by chance, or are there reasons why charity lasts longer than business? Feel free to revisit the issue of the interplay between the free market and charity.

Charity lasts longer than businesses because they have the support of God and people because everyone feels good when they donate money for a cause. They feel important that they can help others who are in desperate need. In many businesses, it is common that corruption and fraud are behind many deals. The common reason for businesses to exist is to gain a profit, but charity is in existence solely for others’ well-being. Our conscience is what leads us to do good things and ignore all evil. God made us as perfect beings but we were led away by temptation. We lost the gifts that God had given us and charity is a way for us to give back to God and repent for the things we have done. In all of us, there is a desire to do something good.
Extra Credit for Anyone

14. The most efficient "division of labor" in the world is ... traditional marriage between a man and woman.

Traditional marriage between a man and a woman is the most efficient “division of labor” because together a man and a woman combine into one and each other’s talents make up for the other’s deficiences. Both man and wife divide their work so that each one uses their talents most efficiently. The relationship between a man and his wife cause each other to make sacrifices for the other, which a co-worker may not be willing to do. God created his perfect relationship between a man and a woman so that people may live in harmony and efficiency.

Economics Homework Six Answers - Student Three

2009-10-22T12:32:06Z

VeronikaF:

1.Fixed costs can be easily identified by seeing what the total costs are when output is _______. Separately, give an example of a variable cost.

Fixed costs can be easily identified by seeing what the total costs are when output is zero.
Examples of variable costs are labor, packaging, and raw materials, because they change in relation to the output unlike fixed costs.

2.The Lecture mentioned how a prior student in this course is paying her way through college by working as a waitress in a fancy Manhattan restaurant. Suppose her boss told her one day, "We were profitable last month. To increase our profits next month, I'm going to double our number of waitresses so that we can serve more people!" But our former economics student told him that his plan would fail because there is _____________ returns of scale in the restaurant, because more waitresses would result in more wasted time talking to each other and waitresses getting in the way of each other.

Diminishing (marginal) returns, for if you continually increase your input eventually your output will decrease.

3.Give an example of a "short run" cost for a firm, and give an example of a "long run" cost. This can refer to any type of firm, from a grocery store to a baseball team to a homeschool.

At a law firm a “short run” cost would be hiring someone overtime to complete a vital document that is needed for the next day’s early, important meeting. An example of a “long run” cost, which is cheaper and more efficient, would be to hire an extra person so that work would get done faster and that the incident of having to pay overtime for someone would not occur.

4.Suppose you own a mechanics' shop that fixes cars, and you have 4 employees whom you pay $12 per hour. On average your 4th employee can fix 3 cars an hour. What is your marginal product (MP) and marginal cost (MC), and what is the minimum on average that you need to charge customers (your marginal revenue) for fixing cars? (Assume your only cost is labor, and the customer pays the cost of any parts.)

The marginal product is 3, the marginal cost is $4, and the marginal revenue is $4.

5.Earlier in this course we learned that someone who obtains a college degree earns, over the course of his life, about $500,000 more than someone who does not. How can you explain this fact in terms of the advantages of "long run" costs over "short run" costs?

Obstacles in your life could hold you back if you did not have a college degree. First, you will be more appealing for a higher paying job than a high school graduate and you will also have more experience and knowledge about the world and how it works. Overall, going to college will help make your life a bit easier and more efficient since you will have the knowledge and power when troubles come your way. By earning a college degree, you have an advantage over the person who only went to high school and not to college. You will be able to surmount difficult situations. Spending the money, the “long run” costs, and going to college is cheaper in the long run than not spending the money and not going to college. You will not be able to earn as much as a college graduate, and this lost income will, in the end, be greater than the original price for the college education.

7.Suppose you own and drive a taxicab, and its annual license fee is $1000 per year. Suppose you learn that the license fee will increase to $1200 next year. Does this increase either increase, decrease, or have no effect on (a) marginal cost, (b) average variable cost, and (c) average total cost?

(A) increase
(B) no effect
(C) increase

8.Suppose you could earn $8 an hour. Instead, you watch television for an hour. What is your accounting profit or loss, and what is your economic profit or loss, for that hour?

Your accounting loss is zero and your economic loss is $8 because instead of wasting an hour watching TV you could have earned $8 by working. For some people an hour of TV is worth $8 dollars, but in the long run, they are losing money and efficiency because they are wasting time watching TV. They could have been doing something that benefits themselves and others instead of sitting in front of the TV mesmerized and doing nothing.

Honors

Provide brief answers to any four of the following five questions':

9. Suppose there is a sudden increase in the market price for a firm's widget. The firm will hire more employees to produce more output until the point where the value of its marginal product of labor equals its _____________. [Hint: the answer is NOT simply "marginal cost"].

Average product of labor

11. Are "long run" average costs lower than "short run" average costs and, if so, why?
At present, “short run” average costs are cheaper but if you are planning for the future “long run” average costs are cheaper because overtime fees come with “short run” costs, which cause “short run” costs to be cheaper overall than “long run” costs. For example, let’s say you decided to buy cheap windows that have no insulation. They may be cheaper than the insulated windows, which are more than twice the price, but since they have no insulation, they will not retain the heat in your house in the winter or retain the cool air in the summer. Your bills for heating and air conditioning will increase and over the next five years, the price for the cheaper windows will level out to the price of the more expensive insulated windows. In addition, by spending extra money you will save time and trouble. “Long run” costs are cheaper and more efficient that “short run” costs.

12. (Difficult, but try): Your firm seeks to produce a certain level of output in the most efficient way (the lowest cost). It should use its resources in which of the following ways:

(a) use materials that generate the highest marginal product
(b) use materials that have increasing returns to scale
(c) use as much material as possible until there are diminishing returns
(d) use resources such that their marginal products per unit cost are equal

13. Charity, revisited: Sloan's charitable efforts (Sloan-Kettering) have lasted longer than his business efforts (General Motors). Is this just by chance, or are there reasons why charity lasts longer than business? Feel free to revisit the issue of the interplay between the free market and charity.

Charity lasts longer than businesses because they have the support of God and people because everyone feels good when they donate money for a cause. They feel important that they can help others who are in desperate need. In many businesses, it is common that corruption and fraud are behind many deals. The common reason for businesses to exist is to gain a profit, but charity is in existence solely for others’ well-being. Our conscience is what leads us to do good things and ignore all evil. God made us as perfect beings but we were led away by temptation. We lost the gifts that God had given us and charity is a way for us to give back to God and repent for the things we have done. In all of us, there is a desire to do something good.
Extra Credit for Anyone

14. The most efficient "division of labor" in the world is ... traditional marriage between a man and woman.

Traditional marriage between a man and a woman is the most efficient “division of labor” because together a man and a woman combine into one and each other’s talents make up for the other’s deficiences. Both man and wife divide their work so that each one uses their talents most efficiently. The relationship between a man and his wife cause each other to make sacrifices for the other, which a co-worker may not be willing to do. God created his perfect relationship between a man and a woman so that people may live in harmony and efficiency.

Economics Homework Six Answers - Student Three

2009-10-22T12:29:54Z

VeronikaF: Created page with '1.Fixed costs can be easily identified by seeing what the total costs are when output is _______. Separately, give an example of a variable cost. Fixed costs can be easily iden...'

1.Fixed costs can be easily identified by seeing what the total costs are when output is _______. Separately, give an example of a variable cost.

Fixed costs can be easily identified by seeing what the total costs are when output is zero.
Examples of variable costs are labor, packaging, and raw materials, because they change in relation to the output unlike fixed costs.

The Lecture mentioned how a prior student in this course is paying her way through college by working as a waitress in a fancy Manhattan restaurant. Suppose her boss told her one day, "We were profitable last month. To increase our profits next month, I'm going to double our number of waitresses so that we can serve more people!" But our former economics student told him that his plan would fail because there is _____________ returns of scale in the restaurant, because more waitresses would result in more wasted time talking to each other and waitresses getting in the way of each other.

Diminishing (marginal) returns, for if you continually increase your input eventually your output will decrease.

Give an example of a "short run" cost for a firm, and give an example of a "long run" cost. This can refer to any type of firm, from a grocery store to a baseball team to a homeschool.

At a law firm a “short run” cost would be hiring someone overtime to complete a vital document that is needed for the next day’s early, important meeting. An example of a “long run” cost, which is cheaper and more efficient, would be to hire an extra person so that work would get done faster and that the incident of having to pay overtime for someone would not occur.
Suppose you own a mechanics' shop that fixes cars, and you have 4 employees whom you pay $12 per hour. On average your 4th employee can fix 3 cars an hour. What is your marginal product (MP) and marginal cost (MC), and what is the minimum on average that you need to charge customers (your marginal revenue) for fixing cars? (Assume your only cost is labor, and the customer pays the cost of any parts.)

The marginal product is 3, the marginal cost is $4, and the marginal revenue is $4.

Earlier in this course we learned that someone who obtains a college degree earns, over the course of his life, about $500,000 more than someone who does not. How can you explain this fact in terms of the advantages of "long run" costs over "short run" costs?

Obstacles in your life could hold you back if you did not have a college degree. First, you will be more appealing for a higher paying job than a high school graduate and you will also have more experience and knowledge about the world and how it works. Overall, going to college will help make your life a bit easier and more efficient since you will have the knowledge and power when troubles come your way. By earning a college degree, you have an advantage over the person who only went to high school and not to college. You will be able to surmount difficult situations. Spending the money, the “long run” costs, and going to college is cheaper in the long run than not spending the money and not going to college. You will not be able to earn as much as a college graduate, and this lost income will, in the end, be greater than the original price for the college education.

Suppose you own and drive a taxicab, and its annual license fee is $1000 per year. Suppose you learn that the license fee will increase to $1200 next year. Does this increase either increase, decrease, or have no effect on (a) marginal cost, (b) average variable cost, and (c) average total cost?

(A) increase
(B) no effect
(C) increase

Suppose you could earn $8 an hour. Instead, you watch television for an hour. What is your accounting profit or loss, and what is your economic profit or loss, for that hour?

Your accounting loss is zero and your economic loss is $8 because instead of wasting an hour watching TV you could have earned $8 by working. For some people an hour of TV is worth $8 dollars, but in the long run, they are losing money and efficiency because they are wasting time watching TV. They could have been doing something that benefits themselves and others instead of sitting in front of the TV mesmerized and doing nothing.
Honors

Provide brief answers to any four of the following five questions':

9. Suppose there is a sudden increase in the market price for a firm's widget. The firm will hire more employees to produce more output until the point where the value of its marginal product of labor equals its _____________. [Hint: the answer is NOT simply "marginal cost"].

Average product of labor

11. Are "long run" average costs lower than "short run" average costs and, if so, why?
At present, “short run” average costs are cheaper but if you are planning for the future “long run” average costs are cheaper because overtime fees come with “short run” costs, which cause “short run” costs to be cheaper overall than “long run” costs. For example, let’s say you decided to buy cheap windows that have no insulation. They may be cheaper than the insulated windows, which are more than twice the price, but since they have no insulation, they will not retain the heat in your house in the winter or retain the cool air in the summer. Your bills for heating and air conditioning will increase and over the next five years, the price for the cheaper windows will level out to the price of the more expensive insulated windows. In addition, by spending extra money you will save time and trouble. “Long run” costs are cheaper and more efficient that “short run” costs.

12. (Difficult, but try): Your firm seeks to produce a certain level of output in the most efficient way (the lowest cost). It should use its resources in which of the following ways:

(a) use materials that generate the highest marginal product
(b) use materials that have increasing returns to scale
(c) use as much material as possible until there are diminishing returns
(d) use resources such that their marginal products per unit cost are equal

13. Charity, revisited: Sloan's charitable efforts (Sloan-Kettering) have lasted longer than his business efforts (General Motors). Is this just by chance, or are there reasons why charity lasts longer than business? Feel free to revisit the issue of the interplay between the free market and charity.

Charity lasts longer than businesses because they have the support of God and people because everyone feels good when they donate money for a cause. They feel important that they can help others who are in desperate need. In many businesses, it is common that corruption and fraud are behind many deals. The common reason for businesses to exist is to gain a profit, but charity is in existence solely for others’ well-being. Our conscience is what leads us to do good things and ignore all evil. God made us as perfect beings but we were led away by temptation. We lost the gifts that God had given us and charity is a way for us to give back to God and repent for the things we have done. In all of us, there is a desire to do something good.
Extra Credit for Anyone

14. The most efficient "division of labor" in the world is ... traditional marriage between a man and woman.

Traditional marriage between a man and a woman is the most efficient “division of labor” because together a man and a woman combine into one and each other’s talents make up for the other’s deficiences. Both man and wife divide their work so that each one uses their talents most efficiently. The relationship between a man and his wife cause each other to make sacrifices for the other, which a co-worker may not be willing to do. God created his perfect relationship between a man and a woman so that people may live in harmony and efficiency.

Economics Homework Five Answers - Student One

2009-10-14T14:16:23Z

VeronikaF:

VERONIKAF

1.Define, in your own words, economic “efficiency”. Use it in an example sentence.

Economic efficiency is the act of using your time wisely and trying to make it the most productive as possible. People sitting around bored are destroying efficiency because the time that they spent on day dreaming has been lost forever. The phrase “Time is money” perfectly describes the how positive efficiency is for everyone. By being efficient, you can surmount your difficulties and use your time wisely to benefit yourselves and others. You will never get the same opportunity again, so take it or lose it. It’s your choice.

2.Suppose the cross elasticity of demand for goods A and B is +3.8, and for goods X and Y is -2.7. What can you conclude about the relationship of the goods A and B, and of X and Y?

A and B would be perfect substitutes and X and Y would be complements of each other because substitutes are always positive and complements are always negative.

3.Suppose it costs you $500 to make your first 5 units, then $200 to make your next 5 units, and then $100 to make your next 5 units. Costs do not decrease further for you. What is the marginal cost for you to make another unit?

The marginal cost for you to buy another unit would be $20.

4. Suppose your annual income increases from $20,000 to $25,000. Suppose your demand for steak increases by 10% and your demand for fast food hamburgers decreases by 5%. Which type of goods are steak, and which type are hamburgers?

Steak is a normal good because its demand increases when the consumer income increases. A hamburger is an inferior good because when consumer income increases the demand decreases.

5. What is the basic assumption of the Coase theorem, and why is that assumption so important to the result of the theorem?

The Coase theorem states that without transition cost our economy would be efficient regardless of who owns what. Most economists did not believe that the Coase theorem was solid, but eventually came to understand the truth behind it. The Coase theorem perfectly describes the meaning of efficiency without transaction costs.

6. What does an owner do when his marginal revenue exceeds his marginal cost? Explain.

He stops or closes his business because by continuing he would be losing money since his income would be less than his outcome. For example, it would not make sense to keep a crafts store open in the middle of the night because almost no people would come and while waiting for those few customers the owner would be spending the money on electricity and employees. Instead of making money, it would be falling out of your pocket.

7. What does the Coase theorem say about the desirability, and the effect, of government regulations that increase transaction costs?

When the government tries to regulate transaction costs they are actually making, in theory, the economy less efficient. Spending less money on a certain item is great, but if you buy an item that is a cheaper version of the original good, there are problems that come with it that compensate for the money saved. Just as you encounter problems with a cheap item, you receive cheap services and goods when the government controls transaction costs. To make things cheaper you must have cheaper ways to get the goods, which would decrease that good’s value. For example, if you hired a doctor that asked for less money than another doctor, his work will most likely be of less quality. Transaction costs are like a scale: when you decrease one side the other side has to increases so it is balanced.

Honors
No essay this week. Instead, complete all of the following problems:

8. The greater the number of substitutes for a good, is it more or less price elastic? Explain briefly.

The good would be less elastic (inelastic) because the increase in price by a small amount would cause consumers to buy a substitute if there were many from which to choose. Usually when a price of a certain good goes up, some people buy a substitute, but not all. When there are many substitutes for a good that increases in price, many people will then buy a substitute because there will be a variety for all the picky people.

9. The smaller the proportion of income consumed by the purchase of a good, is it more or less income elastic? Explain briefly.

It would be more income elastic because the purchaser would be willing to spend more than before since their income has increased. Since the income of that consumers has increased the price of that good has proportionally decreased.

10. Would government prefer taxing a good that is price elastic or price inelastic? Explain briefly.

The government would probably prefer taxing a good that is price inelastic because the purchaser would have no other choice but to buy that certain good because an inelastic good is a necessity. The consumer would need that certain good to stay alive, i.e. food and water.

11. Calculate the income elasticities for the two goods in question 4.

Steak=4.4 Hamburger=3.8

12. Suppose french fries cost $1 and ketchup 10 cents. When the price of ketchup goes up to 20 cents, the quantity demanded for french fries falls by 10%. What is the cross elasticity of demand for french fries with respect to ketchup? Show your work and state whether these goods are complements or substitutes.

10 cents=0.1 90%=0.9
20cents=0.2 200%=2

French Fries Ketchup
-9=0.9/0.1 -20=2/0.1

Both French fries and ketchup are compliments for each other.

13. (Optional) Can you think of any consequence of the Coase theorem that is not mentioned in this Lecture?

The Coase theorem would cause the value and quality of the service to decrease dramatically because, for example, less educated doctors would be hired because they would be willing to work for less money than the formerly educated doctors whose work was excellent. Loosing transaction costs means loosing quality of work.

Economics Homework Five Answers - Student One

2009-10-14T14:14:02Z

VeronikaF:

VERONIKAF IN PROGRESS
1.Define, in your own words, economic “efficiency”. Use it in an example sentence.

Economic efficiency is the act of using your time wisely and trying to make it the most productive as possible. People sitting around bored are destroying efficiency because the time that they spent on day dreaming has been lost forever. The phrase “Time is money” perfectly describes the how positive efficiency is for everyone. By being efficient, you can surmount your difficulties and use your time wisely to benefit yourselves and others. You will never get the same opportunity again, so take it or lose it. It’s your choice.

2.Suppose the cross elasticity of demand for goods A and B is +3.8, and for goods X and Y is -2.7. What can you conclude about the relationship of the goods A and B, and of X and Y?
A and B would be perfect substitutes and X and Y would be complements of each other because substitutes are always positive and complements are always negative.

3.Suppose it costs you $500 to make your first 5 units, then $200 to make your next 5 units, and then $100 to make your next 5 units. Costs do not decrease further for you. What is the marginal cost for you to make another unit?

The marginal cost for you to buy another unit would be $20.

4. Suppose your annual income increases from $20,000 to $25,000. Suppose your demand for steak increases by 10% and your demand for fast food hamburgers decreases by 5%. Which type of goods are steak, and which type are hamburgers?
Steak is a normal good because its demand increases when the consumer income increases. A hamburger is an inferior good because when consumer income increases the demand decreases.

5. What is the basic assumption of the Coase theorem, and why is that assumption so important to the result of the theorem?
The Coase theorem states that without transition cost our economy would be efficient regardless of who owns what. Most economists did not believe that the Coase theorem was solid, but eventually came to understand the truth behind it. The Coase theorem perfectly describes the meaning of efficiency without transaction costs.

6. What does an owner do when his marginal revenue exceeds his marginal cost? Explain.
He stops or closes his business because by continuing he would be losing money since his income would be less than his outcome. For example, it would not make sense to keep a crafts store open in the middle of the night because almost no people would come and while waiting for those few customers the owner would be spending the money on electricity and employees. Instead of making money, it would be falling out of your pocket.

7. What does the Coase theorem say about the desirability, and the effect, of government regulations that increase transaction costs?
When the government tries to regulate transaction costs they are actually making, in theory, the economy less efficient. Spending less money on a certain item is great, but if you buy an item that is a cheaper version of the original good, there are problems that come with it that compensate for the money saved. Just as you encounter problems with a cheap item, you receive cheap services and goods when the government controls transaction costs. To make things cheaper you must have cheaper ways to get the goods, which would decrease that good’s value. For example, if you hired a doctor that asked for less money than another doctor, his work will most likely be of less quality. Transaction costs are like a scale: when you decrease one side the other side has to increases so it is balanced.
Honors
No essay this week. Instead, complete all of the following problems:

8. The greater the number of substitutes for a good, is it more or less price elastic? Explain briefly.
The good would be less elastic (inelastic) because the increase in price by a small amount would cause consumers to buy a substitute if there were many from which to choose. Usually when a price of a certain good goes up, some people buy a substitute, but not all. When there are many substitutes for a good that increases in price, many people will then buy a substitute because there will be a variety for all the picky people.

9. The smaller the proportion of income consumed by the purchase of a good, is it more or less income elastic? Explain briefly.
It would be more income elastic because the purchaser would be willing to spend more than before since their income has increased. Since the income of that consumers has increased the price of that good has proportionally decreased.

10. Would government prefer taxing a good that is price elastic or price inelastic? Explain briefly.
The government would probably prefer taxing a good that is price inelastic because the purchaser would have no other choice but to buy that certain good because an inelastic good is a necessity. The consumer would need that certain good to stay alive, i.e. food and water.

11. Calculate the income elasticities for the two goods in question 4.
Steak=4.4 Hamburger=3.8

12. Suppose french fries cost $1 and ketchup 10 cents. When the price of ketchup goes up to 20 cents, the quantity demanded for french fries falls by 10%. What is the cross elasticity of demand for french fries with respect to ketchup? Show your work and state whether these goods are complements or substitutes.

10 cents=0.1 90%=0.9
20cents=0.2 200%=2

French Fries Ketchup
-9=0.9/0.1 -20=2/0.1

Both French fries and ketchup are compliments for each other.

13. (Optional) Can you think of any consequence of the Coase theorem that is not mentioned in this Lecture?

The Coase theorem would cause the value and quality of the service to decrease dramatically because, for example, less educated doctors would be hired because they would be willing to work for less money than the formerly educated doctors whose work was excellent. Loosing transaction costs means loosing quality of work.

Economics Homework Five Answers - Student One

2009-10-11T17:52:50Z

VeronikaF: Created page with 'VERONIKAF IN PROGRESS'

VERONIKAF IN PROGRESS

Economics Homework Four Answers - Student One

2009-10-04T17:09:36Z

VeronikaF:

VERONIKAF

1.A consumer's overall satisfaction is expressed in economics as his _________________.

Marginal Utility

2.Suppose you see a sleek-looking used sports car and you immediately want to buy it. You think to yourself, "I can paint that car and fix it up so it looks brand new!" You like it so much that you would very work hard for a year and save up $10,000 to buy it. You ask the owner how much he'd sell the car for, and he says $9,000. If you buy it for $9,000, then what is your "consumer surplus"? What does that concept mean?

Your “consumer’s surplus” equals $1,000. The difference between the total amount that a consumer is willing to pay for a specific good and the seller’s price is the consumer’s surplus. Consumer’s surplus is when a consumer becomes richer in a certain way because he was willing to pay more for a good than the seller has asked for it. The consumer benefits from this because he does not have to spend that extra money that he would have spent willingly Since the seller asked for less than what the consumer was willing to pay, the consumer automatically gained money for himself even though he always had it before. There are many ways in which you can become richer without receiving money from another.

3.Suppose your favorite hobbies are reading books and hiking, and imagine that they have the following values for marginal utility. The first hour that you hike gives you lots of utility: 10 units. But as you start to tire, you enjoy and benefit from it less. The next hour of hiking is worth only 8 units of utility (in other words, it has a marginal utility of 8 units rather than 10), and the next hour of hiking is worth only 5 units, and then 3, then 1, and then zero for the next hours, in that order. Your marginal utility for reading books does not decline so quickly. In the first hour, reading a book gives you utility of 6 units; the next hour is worth 5 units; the next hour is worth 4 units; and then 3, 2, 1 and 0. Suppose that you have 5 extra hours today. How should you spend those hours on hiking and reading in order to maximize your utility, and what will be your total utility for those 5 hours? Explain your answer.

To maximize my utility I would hike the first two hours, read the second two hours, and then hike for my final hour until I would have spent my five hour extra hours doing what I love. My utility would be 34 units because I would have used the first most enjoyable hours of both hiking and reading. That way my utility would be the highest it could get without stopping repeatedly, and I would still have an assortment of activities.

4.Suppose you plan to buy a brand new car for $25,000. When you do to the car dealership to make your purchase, you notice that there is a car on the lot that looks brand new but not longer has the sticker price on it. The dealer says it was returned by someone after driving it only 100 miles. You like the color and ask if you can buy it. The dealer, seeing that you’re so interested, says he’ll sell it to you for the same price as a brand new car that has never been sold. You’re willing to buy it at full price, and do not mind one bit that someone else used it briefly and returned it. But you notice that other people (the “market”) would not pay full price for a returned car. Relying on the “market” rather than your personal preferences, what should you tell the dealer in order to maximize your benefits from your purchase?

You tell the dealer that you are willing to pay $20,000 for the car that was used because the value of that used car drastically decreases when it was ridden. When the dealer realized that his chance to take advantage of your personal preferences has vanished he will sell you the car because it would benefit him too. The one thing about cars which helps the consumer but not the seller is that the first couple of miles decrease the value by a lot. It is cheaper to buy a car that was used slightly than pay for a new overly price car. Even though the dealer did not get as much as he could have if you had followed your personal preferences, he should consider himself very lucky because it is hard to sell a use car that was specially made for someone else. Your overall consumer surplus was increased by $5,000 because instead of following your personal preferences (in which you would gain now consumer’s surplus except the happiness of owning a new car) you followed the “market”. The free market is always there to help you out.

5. Explain why the shape of an indifference curve for two goods that are perfect substitutes is a straight line going from the upper left down to the lower right. Extra credit: why must its slope be negative 1?
The indifference curve is straight because the values of the goods are the same. The lines are parallel, but as your value goes up, your quantity decreases. For example, you may prefer one ice cream cone to two slices of chocolate cake, and in the end you would be left with one good instead of two, but your personal value for that cone is greater than for those two slices. The slope on the graph is negative one because it demonstrates a 2 for 1 deal; someone is losing one of their goods.

6. Describe either the "income effect" or the "substitution effect." Take your pick.
Substitution effect is one of the causes for the struggling American companies. As you may expect, manufacturing goods outside of the USA is cheaper for companies. They would rather pay half the price of transaction cost in making a good than manufacturing their goods in the USA for an expensive price. Number one, the manufacturing would cost money, which would force them to increase the price of their goods resulting in a decrease in demand. People will not want to pay for expensive pants made in the USA. The consumer will just go to the clothing store next door and buy pants which are the same quality and made outside of the USA. Getting your dollar’s worth has been drilled into the heads of the past couple of generations, which results in people trying to find the cheapest way to do and get things. Substitution effect is both good and bad for it benefits the common people, but is destroying the companies and manufacturers in the USA.

7.Charity is based on the foundation of a successful free market. Or is a successful free market based on a foundation of charity? Describe and explain which is the cart, and which is the horse (in other words, which comes first or is most important, charity or the free market).

I believe charity is based on the foundation of a successful free market because it relies on the good of the people. Most people will only give donations to charities if their income is steady. People will first try to solve their financial problems before they start giving away their money to others when they need it themselves. People today are so enveloped in greed and ambition that they forget that some other person in the world is dying of pneumonia because they have no medicine. Many people are spending their money on unnecessary luxuries when they could be saving lives. It is always great to spend some extra money on yourself, but then it can get to a point when it is excessive. If you were in the shoes of a person in Africa dying from starvation you must feel that no one cares about you because your “brethren” out there are spending a great amount of money on things for which they have no real use. People do not want to know what is happening in the world because then they will realize how selfish and vain they were when they could have been saving many lives all over the world. The free market is the horse that pulls charity along struggling to survive the bumps. We put ourselves above everyone else; our needs come first. When you are barely surviving you do not have the money to donate to a charity that is why the free market is there so that charity may create innovative ways to get money from others and not only depend on the common people. If there was no free market, charity would have a hard time surviving. It would go nowhere as a cart stays stationary if there is no horse to pull it.

Honors

Write in about 300 of your own words on one or more of the following topics:

8. "A penny saved is a penny earned!" In fact, once taxation is taken into account, "a penny saved is almost two pennies earned!" Discuss one or both of these quotations.

"A penny saved is a penny earned!" is an insightful quote that relates to all of our financial lives. It describes how by being frugal you are actually earning money as you go along. For example, let’s say you badly wanted an ice cream cone one hot summer day and there were two ice cream parlors nearby. You knew that one of them was cheaper than the other even though the ice cream was the same quality. Instead of going to the popular expensive ice cream parlor, you decide to save $1 by going to the less expensive store to buy ice cream. In the end, you have increased your income amount by $1 which you can use in a more useful way. If you would have gone to the popular ice cream store you would have spent an extra dollar, which you would have to work to earn back. So instead of spending an extra dollar for an atmosphere with lots of people you now have earned a dollar without having to work for it.

10. Prove the Law of Demand as simply as you can, perhaps using the assumption that the consumer always tries to maximize marginal utility.

The law of demand states the decrease in price increases the demand. To support this theory is the idea that a consumer always tries to maximize their marginal utility. People tend to buy more of a certain good when the price decreases. For example, you enter Abercrombie and Fitch to buy a sweater for the winter but when you see that the sweaters are half price, you decide to buy a scarf to go with it since you have the extra money you were willing to pay for the sweater. In the end, you have maximized your marginal utility because you have gotten more for your money than you had thought you would. Even though you would have been willing to pay full price for that sweater, you cannot give up a great deal in which you can get a “free” scarf. Through your purchase you have proven that the law of demand is incorporated in everyone’s daily life.
Extra Credit for Anyone

12. Explain whether goods X or Y are perfect substitutes or complements or something else for the indifference curves below, and why:

This graph illustrates three goods which were replaced by three other complementary goods. This graph could apply to sports equipment. As each season abruptly takes the place of another, the sales of sport equipment change radically. For example, the purchase of skis increases considerably when winter approaches but baseball equipment sales decrease rapidly since no one is going to play baseball in the middle of the winter.

Economics Homework Four Answers - Student One

2009-09-30T20:12:25Z

VeronikaF: Created page with 'VERONIKAF IN PROGRESS'

VERONIKAF IN PROGRESS

Economics Homework Three Answers - Student Seven

2009-09-24T15:56:31Z

VeronikaF: Created page with 'VeronikaF 1.Give an example of a good that has large price elasticity, meaning that a small decrease in price causes a big increase in demand. A decrease in the price for a...'

VeronikaF

1.Give an example of a good that has large price elasticity, meaning that a small decrease in price causes a big increase in demand.

A decrease in the price for a cell phone plan will immediately increase the demand. Today many of the cell phone plans are very expensive, but people have to pay the money since it is hard to survive in this century without a cell phone. This is a perfect example of where the companies take advantage of their costumers.

2.Explain the concept of income elasticity.

Income elasticity is a concept which explains the effect income has on demand. It proves how demand increases when income increases, but in some cases the opposite occurs. As we all know, when you have extra money left over after paying all your expenses you treat yourself to some kind of luxury. This is the same for how the economy works. In some cases when the income increases the demand decreases. When we have some extra money we are willing to spend that extra money on better quality items. For instance, let’s say you are used to buying manual toothbrushes, but when you start getting a higher salary you start to buy more expensive electric toothbrushes because they clean your teeth better. In this case, the company who sells manual toothbrushes looses money. Money passes from wallet to wallet. Whoever has that money in their possession has the ability to affect the economy.

3.A nearly perfectly elastic demand curve is nearly _____ in shape; a nearly perfectly inelastic demand curve is nearly_______ in shape.

a) An arc
b) Straight

4. Why is the name "necessity" given to a good that has a price elasticity of less than one, and the name "luxury" given to a good that has a price elasticity of more than one?

The term “necessity” is given to a good that has a price elasticity of less than one because we need that good to survive in this society, but a good that has a price elasticity of more than one is called a “luxury” because we do not need that certain good for our survival; it is something extra for our enjoyment.

5. What is a substitute for French fries, and what is a complement for them?

Potato chips are a substitute for French fries since they also are made from potatoes and are a snack food. A complement for French fires is ketchup. It brings some extra flavor to the salty, but bland French fries.

6. Give an example of a "normal" good, and an example of an "inferior" good.

Clothes are a “normal” good and hormone laced milk is an “inferior” good.

7. A "price ceiling" is a type of price control that sets the maximum price allowed by law for something (like a real ceiling). A "price floor" is a type of price control that sets a minimum price allowed by law for something (like a real floor). Does a price ceiling that is set below the equilibrium (free market) price cause a surplus or a shortage? Using the graph in this lecture, explain why a surplus or a shortage is created by a price ceiling.

A shortage is created when a price ceiling is set below the equilibrium because when the price decreases the demand increases. Setting a price ceiling below the equilibrium will cause a shortage because the companies selling those goods will be forced to decrease the price which then appeases the buyers since most people want to spend the least amount of money on a certain good. Eventually there will not be enough to go around which will cause a shortage. If the maximum price is increased, set above the equilibrium, the demands for that good will decrease since most people will not be willing to spend the amount the sellers are asking. The price ceiling is an important concept on how price affects the market.
Honors

9. Explain price discrimination, and conclude with your view of whether it should be legal or illegal.

I believe price discrimination is both good and bad. It depends in whose shoes you are in. If you are an average person, price decimation being legal will benefit you, but if you make more than a modest income, price discrimination might eventually hurt you. It helps the average person who continually struggles by making luxury goods, consumed by the wealthy, more expensive. For example, if an owner of a hockey rink did not have special seating for corporations and the wealthy, he would have to increase the price of each individual seat to meet his wanted income. So, by renting out luxury booths it helps meet the owner’s wants, but also gives the public a cheaper solution. If you have the money for luxury items, the price of things may be increased especially for you because you are able to meet a higher asking price. People would take advantage of you. The wealthier class would find it hard to survive because they would be spending relatively the same amount of money as the lower class according to their budgets. There would be many complaints from the rich, but satisfied smiles from the poor.

11. What is your view of the minimum wage? Should it be increased?

The minimum wage should be increased because each individual should be able to have some means of survival. Americans are so blinded by greed that they can not see all the people suffering from their merciless decisions for their wage. It is very difficult to survive in this type of economy and without a well paid job, one may be headed for destruction. People need to wipe away the shadow of greed from their eyes and realize how many people are struggling to evade a life of poverty.

Economics Homework Two Answers - Student One

2009-09-15T16:20:59Z

VeronikaF:

VeronikaF

1.The supply of a good, and the demand for that good, determine both the ______ and ______ at which the good is sold (assuming it is a free market).

a)quantity
b)price

2.Suppose the price demand curve for a particular good is P = $30 - Q, where P is the price and Q is the quantity. Also suppose the price supply curve is P = $6 + Q. At which price and quantity will the good be sold (assuming a free market)?
Price-$18
Quantity-$12

3.When the supply of a good or service increases, such as increasing the number of oil wells, what happens to the market price of oil? Explain. When the demand for a good a good or service increases, such more people driving cars that need gasoline (refined oil), what happens to the market price of oil? Explain.

If the supply of goods or services increases, the price will atomaticly decrease because there is abundance for all and no one is lacking oil and therefore no one will be willing to pay the higher price. When the demand increases the price of that good gets more expensive since everyone needs gas (the quantity of that certain good is decreasing) and are willing to pay more. When quantity decreases price increases. If there is not enough to satisfy the whole world you have to pay a greater perice so you may have the priviledge of having gas. Supply and demand can drastically change the price of goods and services in a blink of an eye.

4.Why do grocery stores lower the price of their fruit (such as grapes) when they have an oversupply of ripened fruit? Explain by citing the downward slope of a demand curve, and describe what happens to this fruit after the grocery store lowers its price.

Grocery stores will lower the price of friut if they have an oversupply of fruit. If the demand in food decreases the quantity of all the fruit in the store will increase since not many people are buying the friut now. Also, fruit has a short shelf-life. The grocery store would rather sell the fruit at a discounted price than let it all go bad and lose all the money they spent. It is always better to get something rather than nothing.

5.When the New York Yankees built their new $1.5 billion ballpark, they made a decision about how many "obstructed view" bleacher seats to include. Due to the design of this new stadium, people sitting in these bleacher seats could not see all of the field because part of the stadium structure blocks part of their view. Here is what the supply and demand are for those obstructed-view seats:
Quantity of "Obstructed-View" Tickets Demand Price/Ticket Supply Price/Ticket
300 $10 $3
600 $5 $5
900 $3 $7
1000 $2 $9

(A)How many "obstructed view" bleacher seats did the New York Yankees build, based on the above data, and how much does the team make from sales of these tickets at each game?

The New York Yankees built 600 seats based on the data above. They make $3,000 from sales of the tickets each game.

(B)Suppose the City of New York passed a law for a maximum price (a "price control") of $2 per "obstructed view" bleacher ticket. Will the obstructed-view seats sell out under this law, and will people have to wait in line in order to buy them? Would you oppose or support such a law, and why?

I would oppose such a law because even though the price of each ticket would decease, the value of the ticket would also decrease. You may think that selling a good for a lower price will result in more purchases, but eventually people will not want that good anymore since it is not considered “special”. When the tickets are more expensive, people exaggerate scarcity in their minds which make them believe that they are “special”

6."Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.

“Time is money” is a very wise saying which describes how by wasting time you are missing the opportunity of earning more money. Many people today waste time watching TV and playing video games when they could be working and gaining something positive from it. Sure it is fun to watch TV, but do you really get anything from it? Instead of working your eyes by watching TV, work your brain so that you may have something to carry with you for the rest of your life. The enjoyment you get from watching TV quickly disappears but the proud feeling of actually accomplishing something will last forever.

7.Explain why waiting lists develop in countries (like Canada and England) where the government prohibits anyone from charging more than fixed prices for medical services, assuming that these fixed prices are lower than what the prices would be under supply and demand in the free market. (Hint: the reason is related to the effect of price controls on the supply of a good or service.)

The supply of medical equiment is scarce which causes the price of medical services to increase. In trying to solve this problem, the governments in both Canada and England fixed prices for medical services, which resulted in waiting lists since now almost everyone could afford medical care. The supply did not meet the demand. In this case, deaths increase instead of recovery.
Honors
Write an essay of about 300 words total on one or more of the following topics:

8.Discuss the effect of supply and demand and the Tyndale Bible.

Both supply and demand can not exisit without the other. There is only perfect harmony when supply meets demand. They whole economy revolves around supply and demand since they are the cause for almost everything that happens finanically. If there is an unbalance, the society and economy then will be in deep trouble. For example, take the Tydale Bible (early 1500s); the only reason it was a success was because the supply met the demand. When the Church and King Henry VIII heard that a certain man named, William Tydale, was illegally printing his English translation of the Latin Bible, they decided to try to buy it out. But as you may suspect, they were actually supporting it since in buying all the copies, the money all went to transation costs. They finally realized that they only way to defeat it was to hope it would eventually disappear on its own. The free market helped to protect it from the overprotection of the Catholic Church.

12. Compare "equilibrium" in economics to "equilibrium" in other fields (such as chemistry or physics) or in life itself (such the flow of traffic on highways), using specific examples.

Equilibrium in economics is when the supply meets the demand. It is the perfect balance in the economic world. The right amount of shirts in a store is considered equlibrium because the amount of shirts that people want to buy meets the amount of shirts they have in the store. Equlibrium in biology is the balance within a living organism. The human body is made up of all different parts which are in their own way very important. For example, if one of the organs in our body did not function correctly, we would not be able to survive. The body would be unbalanced and certain bodily functions would not be completed. We could not substitute it with a totally different organ. It would not work because the perfect balance would not be mantained. We were made perfect for our task in the world and if we tamper with that, everything would go wrong.

Economics Homework Two Answers - Student One

2009-09-15T16:19:55Z

VeronikaF:

VeronikaF

1.The supply of a good, and the demand for that good, determine both the ______ and ______ at which the good is sold (assuming it is a free market).

a)quantity
b)price

2.Suppose the price demand curve for a particular good is P = $30 - Q, where P is the price and Q is the quantity. Also suppose the price supply curve is P = $6 + Q. At which price and quantity will the good be sold (assuming a free market)?
Price-$18
Quantity-$12

3.When the supply of a good or service increases, such as increasing the number of oil wells, what happens to the market price of oil? Explain. When the demand for a good a good or service increases, such more people driving cars that need gasoline (refined oil), what happens to the market price of oil? Explain.

If the supply of goods or services increases, the price will atomaticly decrease because there is abundance for all and no one is lacking oil and therefore no one will be willing to pay the higher price. When the demand increases the price of that good gets more expensive since everyone needs gas (the quantity of that certain good is decreasing) and are willing to pay more. When quantity decreases price increases. If there is not enough to satisfy the whole world you have to pay a greater perice so you may have the priviledge of having gas. Supply and demand can drastically change the price of goods and services in a blink of an eye.

4.Why do grocery stores lower the price of their fruit (such as grapes) when they have an oversupply of ripened fruit? Explain by citing the downward slope of a demand curve, and describe what happens to this fruit after the grocery store lowers its price.

Grocery stores will lower the price of friut if they have an oversupply of fruit. If the demand in food decreases the quantity of all the fruit in the store will increase since not many people are buying the friut now. Also, fruit has a short shelf-life. The grocery store would rather sell the fruit at a discounted price than let it all go bad and lose all the money they spent. It is always better to get something rather than nothing.

5.When the New York Yankees built their new $1.5 billion ballpark, they made a decision about how many "obstructed view" bleacher seats to include. Due to the design of this new stadium, people sitting in these bleacher seats could not see all of the field because part of the stadium structure blocks part of their view. Here is what the supply and demand are for those obstructed-view seats:
Quantity of "Obstructed-View" Tickets Demand Price/Ticket Supply Price/Ticket
300 $10 $3
600 $5 $5
900 $3 $7
1000 $2 $9

(A)How many "obstructed view" bleacher seats did the New York Yankees build, based on the above data, and how much does the team make from sales of these tickets at each game?

The New York Yankees built 600 seats based on the data above. They make $3,000 from sales of the tickets each game.

(B)Suppose the City of New York passed a law for a maximum price (a "price control") of $2 per "obstructed view" bleacher ticket. Will the obstructed-view seats sell out under this law, and will people have to wait in line in order to buy them? Would you oppose or support such a law, and why?

I would oppose such a law because even though the price of each ticket would decease, the value of the ticket would also decrease. You may think that selling a good for a lower price will result in more purchases, but eventually people will not want that good anymore since it is not considered “special”. When the tickets are more expensive, people exaggerate scarcity in their minds which make them believe that they are “special”

6."Time is money." Explain. Or, as an alternative, improve on our definition of a "free market." Or, as a third alternative, explain how the free market is so much powerful than even the wealthiest people in the world.

“Time is money” is a very wise saying which describes how by wasting time you are missing the opportunity of earning more money. Many people today waste time watching TV and playing video games when they could be working and gaining something positive from it. Sure it is fun to watch TV, but do you really get anything from it? Instead of working your eyes by watching TV, work your brain so that you may have something to carry with you for the rest of your life. The enjoyment you get from watching TV quickly disappears but the proud feeling of actually accomplishing something will last forever.

7.Explain why waiting lists develop in countries (like Canada and England) where the government prohibits anyone from charging more than fixed prices for medical services, assuming that these fixed prices are lower than what the prices would be under supply and demand in the free market. (Hint: the reason is related to the effect of price controls on the supply of a good or service.)

The supply of medical equiment is scarce which causes the price of medical services to increase. In trying to solve this problem, the governments in both Canada and England fixed prices for medical services, which resulted in waiting lists since now almost everyone could afford medical care. The supply did not meet the demand. In this case, deaths increase instead of recovery.
Honors
Write an essay of about 300 words total on one or more of the following topics:
8.Discuss the effect of supply and demand and the Tyndale Bible.

Both supply and demand can not exisit without the other. There is only perfect harmony when supply meets demand. They whole economy revolves around supply and demand since they are the cause for almost everything that happens finanically. If there is an unbalance, the society and economy then will be in deep trouble. For example, take the Tydale Bible (early 1500s); the only reason it was a success was because the supply met the demand. When the Church and King Henry VIII heard that a certain man named, William Tydale, was illegally printing his English translation of the Latin Bible, they decided to try to buy it out. But as you may suspect, they were actually supporting it since in buying all the copies, the money all went to transation costs. They finally realized that they only way to defeat it was to hope it would eventually disappear on its own. The free market helped to protect it from the overprotection of the Catholic Church.

12. Compare "equilibrium" in economics to "equilibrium" in other fields (such as chemistry or physics) or in life itself (such the flow of traffic on highways), using specific examples.

Equilibrium in economics is when the supply meets the demand. It is the perfect balance in the economic world. The right amount of shirts in a store is considered equlibrium because the amount of shirts that people want to buy meets the amount of shirts they have in the store. Equlibrium in biology is the balance within a living organism. The human body is made up of all different parts which are in their own way very important. For example, if one of the organs in our body did not function correctly, we would not be able to survive. The body would be unbalanced and certain bodily functions would not be completed. We could not substitute it with a totally different organ. It would not work because the perfect balance would not be mantained. We were made perfect for our task in the world and if we tamper with that, everything would go wrong.

Economics Homework Two Answers - Student One

2009-09-13T16:16:04Z

VeronikaF: Created page with 'VeronikaF in progress'

VeronikaF in progress

Economics Homework One Answers - Student One

2009-09-08T00:59:53Z

VeronikaF:

VeronikaF

1. Give an example of a "good" not in the lecture, and an example of a "service" not in the lecture.
Salt is a very important and vital “good”. Salt helps to season meals and it is important for your health. If there was no salt in the world, everything would be bland and life would be tastless.Hiring a lawyer or buying insurance is a “service”. You pay for the service but you do not actually get anything in your hand.

2. Imagine that your family has two options for dinner: eat at home, or go out to eat at McDonald's. Which option incurs more transaction costs? Identify two specific transaction costs. Which option is cheaper for your family, and why?
Having dinner at home is cheaper that going to McDonald’s to eat. For McDonald’s you have to pay for the cost of gasoline used to communte there and the food, also including the cost for the service and electricity used in making your meal. Overall, eating at home is a cheaper way of fullfilling the source of energy your body needs to survive.

3. Define the concept of "scarcity" in your own words, and give an example of how an increase in scarcity for a good or service increases its price. Your example might be a World Series ticket (a good) or a special medical operation (a service), or anything else you can think of that is "scarce" in an economic sense. Extra credit: when do people exaggerate scarcity in their minds?
Scarcity is the situation in which there is a limited supply or amount of a specific good for which you need to pay a price. Take for example watermelon. It is expensive since it needs a specific climate for it to grow properly and it is grown only in the summer. The price is increased because there is not much watermelon in the world which makes it “special” since it is not abundant. Some people exaggerate scarcitity in their minds when they read an article that a certain good is part of a “limited edition”. They create the idea that this specific good is rare even though there are millions of the same good being made and sold.

4. What is the “invisible hand”? Discuss what it is, using an example (which could be from the story in the lecture about the making of a pencil).
The “invisible hand” is the influence that motives people to work harder and create their own opinions and ideas. An example where the “invisible hand” made its mark was when the USA began their mission to space so that they may prove to the Soviet Union, who at that time was the most advanced in space technology, that we can do an even better job. The “invisible hand” helped the USA to progress the knowledge of space and open more doors for the next generation.

5. There are many parables by Jesus in the Gospels of Matthew and Luke (and one in Mark) which use familiar concepts of money and economics in order to teach a deeper, more profound spiritual point. Examples are at Matthew 13:18-23 and 44-46; Matthew 18:21-35; Matthew 20:1-16 and 21:33-46; Mark 12:41-44; Luke 7:36-50; Luke 12:13-21; Luke 14:15-24; Luke 15:8-10; Luke 16:1-13 and 19-31; Luke 18:9-14; and Luke 19:11-27. Pick one of these parables and explain both the economic point and the deeper spiritual point. Extra credit: why might the Gospel of Matthew have more economic parables than the Gospel of Mark does?
I chose the parable Luke 15:8-10, which explains the story of a woman who lost one of her ten silver coins. You might ask why she searched for it even though it was not worth much, but the scarcity of the coin that the woman had made it more valuable to her. For example, if a rich man lost one of his hundred silver coins it would not be worth the time he would have spent on searching for it. This is a perfect example of how scarcity can change the value of a certain good. The less you have, the more you appreciate what you have. The gospel of Mathew had more economic parables because Mathew was a tax collector before he joined Jesus.

6. "Caveat emptor" or "carpe diem": pick one of these concepts and explain what it means to you.
I particlarly like “carpe diem”, “sieze the day”, because it motivates you to be your best all the time since you might not have the priviladge of existing tomorrow. Never waste a day because you will never again be able to have that day again, for it is lost unless you use the time wisely. Today is a gift and that is second why it is called present.

8. "Money is a good servant, but a poor master." Please explain.
“Money is a good servant, but a poor master” is one of the truths about life. Money is wonderful to have because you can get goods you want with it but you must control yourself so that it will not take advantage of you. It is easy to be controlled by money because it helps one forget fear and sorrow for a period of time, but all your worries will slowly come back. Even though money may seem an innocent good that benefits you, you may be surprised how many people become self absorbed with money and all they think about is a way to get or earn more. Eventually, you will become of servant of money instead of being the master of money. When God is not the center of your life you know that something is wrong and that you had better change your lifestyle or you will fall in trouble later on. Money is like alcohol, the more you have the more you want.

10. (Based on a true story.) Imagine that you are riding on an airplane and need to finish a written project by the time it lands in order to earn a fee of $500. The passenger next to you, however, keeps interrupting you by complaining about how she lost a $5 bill in the airport before the plane took off. You keep telling her to forget about it, but she won't. She keeps bothering you so much that you cannot get your work done, which is worth far more than $5. What would make sense in purely economic terms for you to offer to get her to stop bothering you about it? Explain.
If I was stuck in this type of situation I would just give the complaining lady $5 so that I would be able to complete my project in time. If I would have continued to try to finish my project while letting the woman complain I would be at risk of loosing $500 instead of spending $5 of transation cost so that I may have a greater chance of completing the job that I must do before the plane lands. You would rather loose $5 to obtain $500 than spend nothing, but gain nothing. In life you have to take chances to get oportunities, but if you play it safe there will be nothing for you to reap. If we did not take chances, life would be dull and not worth living. Life is about the decisions we make and how we deal with our problems.

Economics Homework One Answers - Student One

2009-09-08T00:59:22Z

VeronikaF:

VeronikaF

1. Give an example of a "good" not in the lecture, and an example of a "service" not in the lecture.
Salt is a very important and vital “good”. Salt helps to season meals and it is important for your health. If there was no salt in the world, everything would be bland and life would be tastless.Hiring a lawyer or buying insurance is a “service”. You pay for the service but you do not actually get anything in your hand.

2. Imagine that your family has two options for dinner: eat at home, or go out to eat at McDonald's. Which option incurs more transaction costs? Identify two specific transaction costs. Which option is cheaper for your family, and why?
Having dinner at home is cheaper that going to McDonald’s to eat. For McDonald’s you have to pay for the cost of gasoline used to communte there and the food, also including the cost for the service and electricity used in making your meal. Overall, eating at home is a cheaper way of fullfilling the source of energy your body needs to survive.

3. Define the concept of "scarcity" in your own words, and give an example of how an increase in scarcity for a good or service increases its price. Your example might be a World Series ticket (a good) or a special medical operation (a service), or anything else you can think of that is "scarce" in an economic sense. Extra credit: when do people exaggerate scarcity in their minds?
Scarcity is the situation in which there is a limited supply or amount of a specific good for which you need to pay a price. Take for example watermelon. It is expensive since it needs a specific climate for it to grow properly and it is grown only in the summer. The price is increased because there is not much watermelon in the world which makes it “special” since it is not abundant. Some people exaggerate scarcitity in their minds when they read an article that a certain good is part of a “limited edition”. They create the idea that this specific good is rare even though there are millions of the same good being made and sold.

4. What is the “invisible hand”? Discuss what it is, using an example (which could be from the story in the lecture about the making of a pencil).
The “invisible hand” is the influence that motives people to work harder and create their own opinions and ideas. An example where the “invisible hand” made its mark was when the USA began their mission to space so that they may prove to the Soviet Union, who at that time was the most advanced in space technology, that we can do an even better job. The “invisible hand” helped the USA to progress the knowledge of space and open more doors for the next generation.

5. There are many parables by Jesus in the Gospels of Matthew and Luke (and one in Mark) which use familiar concepts of money and economics in order to teach a deeper, more profound spiritual point. Examples are at Matthew 13:18-23 and 44-46; Matthew 18:21-35; Matthew 20:1-16 and 21:33-46; Mark 12:41-44; Luke 7:36-50; Luke 12:13-21; Luke 14:15-24; Luke 15:8-10; Luke 16:1-13 and 19-31; Luke 18:9-14; and Luke 19:11-27. Pick one of these parables and explain both the economic point and the deeper spiritual point. Extra credit: why might the Gospel of Matthew have more economic parables than the Gospel of Mark does?
I chose the parable Luke 15:8-10, which explains the story of a woman who lost one of her ten silver coins. You might ask why she searched for it even though it was not worth much, but the scarcity of the coin that the woman had made it more valuable to her. For example, if a rich man lost one of his hundred silver coins it would not be worth the time he would have spent on searching for it. This is a perfect example of how scarcity can change the value of a certain good. The less you have, the more you appreciate what you have. The gospel of Mathew had more economic parables because Mathew was a tax collector before he joined Jesus.
6. "Caveat emptor" or "carpe diem": pick one of these concepts and explain what it means to you.
I particlarly like “carpe diem”, “sieze the day”, because it motivates you to be your best all the time since you might not have the priviladge of existing tomorrow. Never waste a day because you will never again be able to have that day again, for it is lost unless you use the time wisely. Today is a gift and that is second why it is called present.
8. "Money is a good servant, but a poor master." Please explain.
“Money is a good servant, but a poor master” is one of the truths about life. Money is wonderful to have because you can get goods you want with it but you must control yourself so that it will not take advantage of you. It is easy to be controlled by money because it helps one forget fear and sorrow for a period of time, but all your worries will slowly come back. Even though money may seem an innocent good that benefits you, you may be surprised how many people become self absorbed with money and all they think about is a way to get or earn more. Eventually, you will become of servant of money instead of being the master of money. When God is not the center of your life you know that something is wrong and that you had better change your lifestyle or you will fall in trouble later on. Money is like alcohol, the more you have the more you want.

10. (Based on a true story.) Imagine that you are riding on an airplane and need to finish a written project by the time it lands in order to earn a fee of $500. The passenger next to you, however, keeps interrupting you by complaining about how she lost a $5 bill in the airport before the plane took off. You keep telling her to forget about it, but she won't. She keeps bothering you so much that you cannot get your work done, which is worth far more than $5. What would make sense in purely economic terms for you to offer to get her to stop bothering you about it? Explain.
If I was stuck in this type of situation I would just give the complaining lady $5 so that I would be able to complete my project in time. If I would have continued to try to finish my project while letting the woman complain I would be at risk of loosing $500 instead of spending $5 of transation cost so that I may have a greater chance of completing the job that I must do before the plane lands. You would rather loose $5 to obtain $500 than spend nothing, but gain nothing. In life you have to take chances to get oportunities, but if you play it safe there will be nothing for you to reap. If we did not take chances, life would be dull and not worth living. Life is about the decisions we make and how we deal with our problems.

Economics Homework One Answers - Student One

2009-09-05T20:31:30Z

VeronikaF: Created page with 'VeronikaF in progress'

VeronikaF in progress

World History Homework Twelve Answers - Student One

2009-04-29T13:27:00Z

VeronikaF:

Veronika F.

1.World War II: when, where, who and why? Explain

World War II was a world-wide conflict taking place mainly in Europe in which many countries used advanced technology in their war fare. The two opposing alliances were the Allies (British Empire, Union of Soviet Socialist Republics (after they broke their alliance with Germany), and the United States and the Axis (Germany, Italy, and Japan). The Second World War began in 1939 and ended in 1945 after the United States dropped the atomic bomb on Nagasaki, Japan. This immense war began when Nazi Germany invaded Poland, which seemed at that time of little threat, until Germany stared conquering more land, breaking agreements, and inhumanely killing Jews and other innocent people. People were afraid that the Nazis in Germany would go to any extent to take control of the world.

2. Compare and contrast communism and fascism, with at least two examples of how they are similar and two examples of how they differ.

Both communism and fascism believe that the wellness of the state and obedience to a powerful leader comes before the interests and opinions of the citizens. Secondly, both of these groups believe that the most vital key to success and control is to have a powerful and skillful military. There are also some notable differences. The Nazi party, to Hitler’s advantage, was mostly driven by nationalistic and ethnic divisions which caused great sufferings for the Jews and other groups; however, fascism put the state above all else. Also, fascist believe that the government should have control over private enterprise, but it should not designate it as the communists do.

3. Why do you think Hitler and his supporters killed so many people? Explain.

Hitler was a very evil and power-hungry man. He crushed anyone that was in his way of achieving victory. Hitler helped advance the idea that the Aryans were the master race and that the weak and Jews and other groups of people were a contaminated race that should be exterminated. Many of the Aryans were Germans. He did everything in his power to kill every Jew that was alive. He did not know when to stop. Hitler was blinded by greed and hatred so that he could not distinguish insanity from sanity.

5. Describe any aspect of the Cold War or the Korean War or the Spanish Civil War (with reference to Orwell, if you like).

The Cold War fascinates me immensely because in this war there was no military conflict; it was a competition between the United States and the Soviet Union over who was the most powerful. Its name describes it perfectly since there was no actual fire from either side (there was no heat).Both countries created and manufactured new military weapons and threatened the other with their powerful creations. Thankfully, this war did not go to the extent where each enemy would have to use weapons. If they did we may all have never been born since the atomic and/or hydrogen bomb would have destroyed us all and made earth uninhabitable.

6. How did technological advances or insights help the Allied forces? Be specific.

The technological advances helped the Allied forces win the war because they needed weapons that could withstand and possibly overtake the powerful weapons of the Germans and Japanese. Germany and Japan were well equipped with the best weapons that were available at that time and they considered themselves invincible. The atomic bomb which the United States created helped bring an end to the Second World War. This was the one and only thing that could bring the Japanese, who would rather die than surrender their country, to admit defeat and end their brutal fight.

7. Should the United States have entered World War II in Europe? Discuss.

I think it was right for the United States to enter World War II because if they did not the Nazis in Germany may have taken control of a large part of the world. Hitler and his followers would have kept on fighting until they conquered the whole world. They were believed to be invincible since they had the military equipment, support of the people, and the fear of the weak. At that time, the United States was considered one of the most powerful and largest countries in the world and they were the only ones that could have a chance against the enormous German military. The United States has to stand up for what they believe is right and wrong, and if something or someone is endangering the moral justice in the world, we have the duty to fight back.

H3. Was it right for Churchill not to warn a town about a German bombing if he knew the town would be bombed?

I think Churchill chose the right decision to not warn a town that they were going to be bombed, which they discovered when the German code for the enigma was broken. The Germans were not stupid and if they saw that the town that they were going to bomb was all prepared for the invasion, they would become suspicious that someone had broken their code. Churchill knew that the broken code could help the Allied forces to win the war even though many lives would be sacrificed for it. He understood that he had to use this advantage for a greater cause in a more skillful way without causing any suspicion. If he let this one go, he could use this precious information from the broken code to help them win a great victory that would make a greater difference. War is about the decisions that leaders make, whether right or wrong.

World History Homework Eleven Answers - Student One

2009-04-23T01:22:08Z

VeronikaF:

VeronikaF

1.What was the "Great War," and why was it called that? Who was on each side?

The “Great War”, also known as World War I, was given a name that perfectly described the size of it. World War I was the first war in which countries from almost all of the continents were fighting. On one side was Britain, France, and Russia: the Triple Entente, and on the other side was Germany, Italy, and Austria-Hungary: the Triple Alliance. So many countries became involved because of secret alliances. This war was just the beginning of a series of enormous wars that have inflicted great evil and suffering on our world.

2.Who won World War I? Explain the outcome.

No one really won the war, but some countries gained land and enforced laws upon other countries to their advantage. Britain, France, Russia, and America gained more power and land than any other country, but they all lost a large amount of men in World War I. Germany was used by the allies in the Triple Entente and was forced to pay them an immense sum of money that was at that time impossible since they just returned home from the war beaten up and almost bankrupt. This war did not really bring peace to the world; it initiated the rise of communism and World War II. When the whole world gets involved it becomes very bloody and the powerful forget their original mission and become obsessed with gaining more power and land.

3. Pick your favorite battle of the War and describe it.

The Third Battle of Ypres also known as the Battle of Passchendaele was between Britain and Germany during the year 1917 in Ypres, Belgium. This battle was one of the many major battles of World War I which was fought for the control of a village, Passchendaele, which was very close to the town of Ypres in West Flanders. Each side, especially the Germans, tried to destroy their enemies by suffocating them with poisonous gas. Many lives were taken without any success or progress in the war. The Canadians took Passchendaele in October after a tedious struggle between the two armies, but with great regret because of all the causalities.

4. When, where, why, and by whom did the Communist Revolution occur?

Communism first occurred in Russia during 1917 when the line of czars was disrupted by Lenin. The revolution was inspired by the ideas of Marxism, which was spreading rapidly and was very common at that time. Communism opposes capitalism, but is very similar to socialism. The flag of communism has a red hammer and sickle upon it. Communists, like Marxists, believe that society should be only made up of the working class, all must unite and create a world run by everyone equally, and that revolutions should occur in all countries for everyone’s “so called” benefit. Leninism, founded by Lenin, teaches that a communist revolution should be led by someone devout in the belief of communism and someone who will do anything for this cause. The Marxists, however, disagree with this idea. Many people wanted a change. When people heard that Lenin offered them a better world and equality for all they were willing to let him take control, which later brought more evil than happiness to the society.

5. Pick an aspect of "Science and Art in the Early 20th Century" and describe it, along with your view.

The Big Bang theory was a great argument in the early 1900’s about the creation of the universe. I believe that the Big Bang theory could be one of many possible explanations of the beginning of the universe. In 1927, Georges Lemaitre, a Catholic priest and a scientist, was the first man to propose the Big Bang theory as a possible explanation for the origin of the universe. Fred Hoyle created the phase “Big Bang” in 1949, but he did not believe that the theory was a solid possibility of the beginning of the universe. What I found interesting is that its name was formally the name that people used to mock this theory. According to the Big Bang theory, the universe began when an enormous explosion occurred and it started expanding from hot and dense matter that continues to expand to this day. Galaxies are like chocolate chips, expanding and growing larger as the muffin (universe), with the bits of the chocolate, rises and enlarges. I think that the end of the world will happen when the all the matter in the universe looses all its energy and blows up as a light bulb breaks when its wire inside breaks after the bulb has expended all its energy.

6. Describe a European colony in the 20th century, and what happened to it.

Australia, one of Britain’s colonies, helped Britain in World War I by supplying a campaign, which would forge a supply line to Russia. It was originally a British penal colony where criminals were sent to serve their sentences. After the war, Australia became hostile to Britain and started to want freedom in government and laws. When its population increased enough to become part of the commonwealth Australia had to start paying taxes. In World War II, Australia had its own military force, which was sent to mostly Africa and Europe. But when the war ended, Britain started to test nuclear weapons and stationed naval vessels in Australia. The citizens of Australia must have wanted freedom from all the dangerous and annoying experimental and military activity, which mostly benefitted Britain. Even though they are not one country anymore, they still have very similar political and economic ties.

H1. Concerning "work", which do you prefer, the motto of Captain John Smith or of Leon Trotsky?

I would prefer Captain John Smith’s motto,“He that will not work shall not eat,” over Leon Trotsky motto, “If you do
not obey you do not eat,” since it is never good to force people to obey. No one should ever have to obey someone especially if what they believe in is wrong. God gave us free will to choose for ourselves and we should not let someone else take that gift from us. We are our masters and no one has the right to force us to perform or obey a commandment.

World History Homework Eleven Answers - Student One

2009-04-20T23:41:38Z

VeronikaF: Created page with 'VeronikaF in progress'

VeronikaF in progress

World History Homework Ten Answers - Student One

2009-04-15T14:34:43Z

VeronikaF:

VeronikaF in progress

1.When and where was the Industrial Revolution?

The Industrial Revolution was a period of history, that occurred between the late 18th and early 19th centuries, that brought many advantageous changes in farming, manufacturing, and transportation. This greatly affected the culture and economy in Britain and later in many other countries in almost every continent. The Industrial Revolution helped advance society, which influenced our lives dramatically.

2.Pick your two favorite scientists or mathematicians from the 1800s and explain what you like about them.

I greatly admire Thomas Edison for overcoming his and other people’s doubts and going after his dreams. What amazed me the most about him was that even though he was deaf, he invented many machines that only a person could enjoy with their ears. Many people do not want other people to enjoy something that they are not capable of enjoying themselves, but Thomas Edison was different. Marie Curie is greatly known for her discoveries and theories on radioactivity. She might have experienced discrimination from some of her colleges and friends because she was a woman and, at that period in time, some people believed that women were not as capable in different subjects as men. She did what she enjoyed and believed what was correct no matter what other people thought. What I found interesting was that she died by poisoning from her own lab. She was an amazingly ambitious woman who did not let anyone get in the way of her goals.

3. Do you think the Industrial Revolution was good or bad, and why?

The Industrial Revolution was good and bad. It really depends in whose shoes you are. Some people created a great fortune while others suffered from their success. Many people were not treated with respect and they lived in inhumane conditions. Life always has good and bad aspects - it’s just where you put yourself. In the Industrial Revolution, the horrible conditions and the greed of the wealthy was revealed and criticized; there is always evil in the world, just the forms change from time to time.

4. Give an example of nationalism from the lecture, with dates.

Nationalism in Germany and Italy, who were having problems overcoming their conflicts, helped the citizens overcome their anger and prejudice towards other fellow citizens so that their countries may unite and gain power. They offered up their own interests for the well-being of their country, not only for them but also for the future and welfare of their children and grandchildren so that they may have a chance to change history. Nationalism occurred during the 19th century and greatly affected the structure and power of many nations.

5. What is imperialism? Describe the four patterns of imperialism.

Imperialism is an act of obtaining power or land. Usually powerful or large countries basically gain indirect control over people’s lives and the government’s structure. The four patterns of imperialism are: establishing colonies, establishing protectorates, trading privileges over a region (an indirect form), and an outside influence of private business. Imperialism was a way for land and power hungry nations to gain more without much conflict or rebellion.

6. Describe an aspect of Africa in the 1800s, such as an example of imperialism.

Many Europeans took advantage of the African’s lack of knowledge about warfare and machinery. The Europeans flowed into Africa trying to capture as much land as they could because they knew there was a great amount of precious metals and jewels lying beneath the surface. It was wrong for the Europeans to go and ambush many innocent people and leave them hopeless with no promising future. The Africans were at a disadvantage. When the Europeans started hoarding, they did not react as quickly as they should have to obtain certain military techniques and equipment. As many of us today, we pick on the weak instead of facing the strong because we know it will be easier as the weak will not know how to defend and protect themselves.

H4. Describe how Japan became a military powerhouse by the 20th century.

Japan was under the influence of imperialism for many years, but the Japanese altered that dramatically in the 20th century by changing their lifestyles and their government. The Japanese were smart to start urbanizing families, opening factories, and starting public schooling. This helped modernize Japan so that instead of always being picked on it could now have enough power to start attacking instead of defending. Japan wanted to prove to the world that it does not matter what size the nation is, it matter what’s in your hearts and minds.
The United States gets her success from the form of government that was set up at the beginning of the creation of its nation. The United States also founded schools so that people could get an education and opened factories so that people could get jobs in the city where supplies were abundant. Japan like America are succeeding today because their ancestors made the smart and correct choice to take a step and make a difference so that the world may be a better place.

[[Category:World History lectures]]

World History Homework Ten Answers - Student One

2009-04-15T14:12:09Z

VeronikaF:

VeronikaF in progress

1.When and where was the Industrial Revolution?

The Industrial Revolution was a period of history, that occurred between the late 18th and early 19th centuries, that brought many advantageous changes in farming, manufacturing, and transportation. This greatly affected the culture and economy in Britain and later in many other countries in almost every continent. The Industrial Revolution helped advance society, which influenced our lives dramatically.

2.Pick your two favorite scientists or mathematicians from the 1800s and explain what you like about them.

I greatly admire Thomas Edison for overcoming his and other people’s doubts and going after his dreams. What amazed me the most about him was that even though he was blind, he invented many machines that only a person could enjoy with their ears. Many people do not want other people to enjoy something that they are not capable of enjoying themselves; he was also the inventor of these genius inventions. Marie Curie is greatly known for her discoveries and theories on radioactivity. She might have experienced discrimination from some of her colleges and friends because she was a woman and, at that period in time, some people believed that women were not as capable in different subjects as men. She did what she enjoyed and believed what was correct no matter what other people thought. What I found interesting was that she died by poisoning from her own lab. She was an amazingly ambitious woman who did not let anyone get in the way of her goals.

3. Do you think the Industrial Revolution was good or bad, and why?

The Industrial Revolution was good and bad. It really depends in whose shoes you are. Some people created a great fortune while others suffered from their success. Many people were not treated with respect and they lived in inhumane conditions. Life always has good and bad aspects - it’s just where you put yourself. In the Industrial Revolution, the horrible conditions and the greed of the wealthy was revealed and criticized; there is always evil in the world, just the forms change from time to time.

4. Give an example of nationalism from the lecture, with dates.

Nationalism in Germany and Italy, who were having problems overcoming their conflicts, helped the citizens overcome their anger and prejudice towards other fellow citizens so that their countries may unite and gain power. They offered up their own interests for the well-being of their country, not only for them but also for the future and welfare of their children and grandchildren so that they may have a chance to change history. Nationalism occurred during the 19th century and greatly affected the structure and power of many nations.

5. What is imperialism? Describe the four patterns of imperialism.

Imperialism is an act of obtaining power or land. Usually powerful or large countries basically gain indirect control over people’s lives and the government’s structure. The four patterns of imperialism are: establishing colonies, establishing protectorates, trading privileges over a region (an indirect form), and an outside influence of private business. Imperialism was a way for land and power hungry nations to gain more without much conflict or rebellion.

6. Describe an aspect of Africa in the 1800s, such as an example of imperialism.

Many Europeans took advantage of the African’s lack of knowledge about warfare and machinery. The Europeans flowed into Africa trying to capture as much land as they could because they knew there was a great amount of precious metals and jewels lying beneath the surface. It was wrong for the Europeans to go and ambush many innocent people and leave them hopeless with no promising future. The Africans were at a disadvantage. When the Europeans started hoarding, they did not react as quickly as they should have to obtain certain military techniques and equipment. As many of us today, we pick on the weak instead of facing the strong because we know it will be easier as the weak will not know how to defend and protect themselves.

H4. Describe how Japan became a military powerhouse by the 20th century.

Japan was under the influence of imperialism for many years, but the Japanese altered that dramatically in the 20th century by changing their lifestyles and their government. The Japanese were smart to start urbanizing families, opening factories, and starting public schooling. This helped modernize Japan so that instead of always being picked on it could now have enough power to start attacking instead of defending. Japan wanted to prove to the world that it does not matter what size the nation is, it matter what’s in your hearts and minds.
The United States gets her success from the form of government that was set up at the beginning of the creation of its nation. The United States also founded schools so that people could get an education and opened factories so that people could get jobs in the city where supplies were abundant. Japan like America are succeeding today because their ancestors made the smart and correct choice to take a step and make a difference so that the world may be a better place.

[[Category:World History lectures]]

World History Homework Ten Answers - Student One

2009-04-05T16:35:11Z

VeronikaF: New page: VeronikaF in progress

VeronikaF in progress

World History Homework Nine Answers - Student One

2009-04-01T15:22:25Z

VeronikaF:

VeronikaF in progress

1.Now that you've taken the midterm exam, how might you have prepared better? (5 words or less)

Comprehending the reasons behind History.

2. Religious wars in England: its loss, America's gain. Explain.

Because there was so much fighting in England many people, especially the Puritans, moved to America since there they would be free from the controversies going on in England. England loss many people to America, which later on would help America win the revolutionary war against England. Also, in England, many of the people favored having Protestant kings or queens and were not ready to welcome and Catholic kings no matter if they were the rightful heirs. Catholicism did not thrive as much since most of the kings were Protestant. It always hurts the surrounding when you fight brother to brother and it increases the advantage of your enemies against you because you will have the loss of many people and trust of the government.

3. The French Revolution: all bad, or was there something good about it?

The French Revolution was a gruesome period in France when people expressed themselves in horrid and evil actions. The people of France did not try to solve problems peacefully and did not care that they destroyed many innocent people’s lives. They were blood-thirsty and wanted to kill as much as they could after the government collapsed with humanity and a flourishing society with it. The people were probably tired of being ruled by one person who most likely used his power for his benefit instead of theirs. They wanted a change and they got it. The last king and queen of England, Louis the 13th and Marie Antoinette, spent so much money on themselves and their friends that could have gone to the starving poor. The king and queen were not frugal people and loved spending the king’s treasure on magnificent things such as Versailles, luscious balls and dinners, and rich fabrics for clothing. This was the last straw for the people of France. The French Revolution was a very important part of French history because it ended the line of kings that had been ruling for many years and gave inspiration to the French to start thinking and doing things that were unheard of before. The French Revolution was not all bad because the kings were not thinking about their people and this selfishness needed to end. However, the French could have reacted differently, in a less aggressive way.

5. Why do you think it took the world so long before revolutions started occurring?

Many people were ready for a change and many people thought outside the box and started boycotting against the king. The citizens of nations ruled by a king were finally realizing that many kings were using their powers to benefit themselves. Everyone was happy and had no ideas about rebelling since all people who held boycotts were killed. The king’s army was too powerful for them to overcome. When America gained its freedom from Henry the 8th they sparked an idea or practice into the heads of others. They saw how newly-freed America was prospering without a king. The idea to rebel and kick the king off the throne was contagious since it brought more possibilities and more freedom, especially for the poor. We all want everything to be the best it can get so that we may benefit from it. The poor people were tired of the king cheating them out of their money. They wanted more for themselves.

H1. Does art follow politics, or lead it? Comment in connection with "revolutionary art (including music)."

Art precedes politics because art depicts what the people living in that time period are thinking and their opinions of the government, religion, or society which greatly affects the people in power who try to satisfy the people. The revolutionary art and also music describes the new method of thinking and lifestyles. Romanticism was a movement defined by mostly art and music in the 19th century. It defined the emotion and imagination that many artists felt at that time. Romanticism was a way for artists to express themselves and their ideas in art instead of focusing mostly on the likeness of reality. This type of art brought a new way of thinking and may have help initiate the many revolutions that were going on at that time.

[[Category:World History lectures]]

World History Homework Nine Answers - Student One

2009-03-30T13:13:14Z

VeronikaF: New page: VeronikaF in progress

VeronikaF in progress

World History Homework Seven Answers - Student One

2009-03-19T00:47:49Z

VeronikaF:

VeronikaF

1.Approximately when and where did the Renaissance occur?

The Renaissance transpired from the 1300s to the 1600s and is greatly known for its impact on the history of Europe. Renaissance was the ending page of the Middle Ages and the beginning of a whole knew perspective on the formation and intellectual progress of the world. The Renaissance was very similar to the Golden Ages of Classical Rome and Greece when everyone prospered and new discoveries were made. This period was correctly named because “Renaissance”, which means “rebirth”, comes from French. The Renaissance was an era of competition between artists and architects for fame and glory. People wanted to “make their mark” in history.

2. Martin Luther: who was he, what did he do, and when did he do it?

Martin Luther was a German monk in the Renaissance period and he greatly affected the unfolding of the Protestant beliefs. He was born in 1483 and died in 1546 and is known today as the father of Protestantism. Martin was a law student when God saved him from a dangerous lighting storm, so he fulfilled his promise to God by becoming a monk in the Roman Catholic Church. He was later excommunicated and founded his own group of believers who later became known as the Protestants. Martin Luther’s ideas and beliefs helped begin the Protestant Reformation which affected the course of Western civilization.

3. What was the Baroque style, and what was its motivation?
The Baroque style, which began during the 17th century in Rome, consisted of drama and splendor in all forms of art. The Roman Catholic Church supported the Baroque style since they believed that art should convey religious themes with emotion. Baroque can be used to describe something that is elaborate and has many intricate details. The aristocracy believed that this style would attract many visitors and that it could successfully express power and control. The Baroque style helped capture all the drama that was brought to life in a painting in elaborate details.

4. Summarize the history of the English language.

English, which originated from the Anglo-Frisian dialects, is a West Germanic language. Germanic settlers brought over the Anglo-Frisian dialects to Britain from northwest Germany and the Northern Netherlands. Old English was created with many different dialects which were mostly Late West Saxon, but it was also affected by speakers of the Scandinavian branch and the Normans. Because of these two invasions, English is now a “mixed” language to some extent. Since English flourished by borrowing from others, it now has a voluminous and diverse vocabulary.

5. Chinese dynasties (any one or all), Vietnam, Korea and Cambodia: take your pick and write about one.

Vietnam, a country located in East Asia, did not gain its independence until A.D. 939 after the fall of the Tang dynasty. During the reign of the Lu dynasty its current capital, Hanoi, was established. Vietnam is known for is violent fighters who are willing to give up anything for success. To prove their strength, the Vietnamese in the late ___ defeated the attempts of the brutal and powerful Mongols to conquer their capital. Compared to China, the treatment of women in Vietnam was less severe. I think Vietnam is a proud country which must have constantly competed with China for fame and wealth.

7. Current events: Who would you describe as "Machiavellian" today, and why?

I would describe Bernard Madoff as a “Machiavellian” since he used many innocent people’s hard earned money for his benefit. He had no concern how it would immensely affect many people’s lives. He used many people and their wealth to help him gain a massive profit for himself. He lied and tricked people into thinking that he could gain more interest for them than other companies could. Since this was all a fraud, the people who invested with him lost all their money. When they heard that Madoff could make more money for them, their greed suffocated reason and in return they lost everything. The term “Machiavellian” is a perfect word to describe Madoff and his schemes.

H1. What are the particular strengths and advantages of the English language?

The English Language is gifted with many advantages since it was derived from many other dialects or languages. It has such an enormous and wide-ranged vocabulary that many people can express exactly how they feel. With some other languages it is difficult to express different things because the words just do not exist in their dialect. Many foreign people can get a feeling for the English language because it may have originated from the same dialect as their language. Many of the languages in the world come to us from the Roman and Greek languages and alphabet. I think one of the reasons that America has prospered so much over the years is that their common language, English, has such an abundant and fruitful dialect.

World History Homework Seven Answers - Student One

2009-03-16T14:05:35Z

VeronikaF: New page: VeronikaF in progress

VeronikaF in progress

World History Homework Six Answers - Student One

2009-03-11T17:50:40Z

VeronikaF:

VeronikaF

1.Identify the time period of the Middle Ages, and when the Crusades occurred within that period.

The Middle Ages occurred between A.D. 500 to 1500. This was a time of prosperity in Europe when trade and society flourished. The Crusades, a well known Christian military affair against the Muslims, began in A.D. 1096 and ended in A.D. 1291. It lasted for about 200 years during the feudal period. Not all the Crusades were successful. The most successful of them all was the First Crusade in which the Christian army took control of Jerusalem. This increased the flow of pilgrimages since there was no more danger of being ambushed and killed by the Muslims on your way to the Holy City.

2. Who conquered the largest contiguous region in world history, and when?

The Mongolian ruler and founder, Ganghis Khan, also known as Chinggis Khan, was immensely successful in gaining the largest adjoining empire in all of world history. He lived from A.D. 1162 to A.D. 1227 and is thought to have been a very skillful and intelligent military leader. His big and powerful army helped him conquer many regions which he could add to his vast empire. He used many unusual tactics in his fighting which must have given him an advantage over his enemy. He knew what was needed to conquer the world and he made sure that he had everything that would help him succeed.

3. Which of these modern countries were able to establish nation-states in the Middle Ages, and which were not: Germany, France, England and Italy?

France and England were able to institute nation-states in the Middle Ages, however Germany and Italy did not succeed in establishing nation-states in their region. There were many little wars and controversies between the people and city-states in Italy which prevented it from creating a nation state. Otto I in Germany tried to create a good relationship with the Pope so that he could establish a “Holy Roman Empire”, but his plan did not succeed. As proven later in America, the citizens must unite to accomplish things and together you can become invincible.

4. Pick your favorite medieval architecture and describe something about it.

I am especially interested in Gothic architecture in the Medieval Ages. It was very popular in the high and late medieval period and originated in France during the 12th century. It is well known for its pointed arches, ribbed vaults, and flying buttresses. The gothic architecture is quite common among many European buildings, but mostly religious architecture. The gothic architecture differed greatly from the previous Romanesque architecture, which consisted of tiny windows which cast a gloomy atmosphere.

5. Pick one of the African kingdoms described in the lecture, and explain it.

The Kingdom of Ghana, which thrived from A.D. 800 to A.D.1076, was located in West Africa and was mostly Muslim. This West African empire prospered under a strong ruler and the gold-salt trade across the Sahara, which brought great wealth to its empire; salt at that time was more valuable than gold since it was very rare. They also flourished from the collection of taxes on the merchant caravans that passed through their territory on their way to trade with others areas. Many of the African tribes at that time were very wealthy and there was not as much controversy surrounding opposing territories as now, except for kidnapping each other’s inhabitants to sell to slave traders.

6. Pick your favorite aspect of Scholasticism, and describe something about it, or your view of it.

Scholasticism is wonderful because it helps the human mind understand better things that are beyond reason. Many people are discouraged that they cannot understand the theory of God or of other mysteries. They eventually give up and believe that there is no God since it’s beyond our understanding. Scholasticism helps people understand more clearly things that puzzle us by using reason, which the human mind uses continually everyday. Reason is the closest we will get in comprehending the mysteries of God and mysteries.

H3. Do you think Joan of Arc had a calling from God?

Joan of Arc was a young woman who came from a very poor peasant family. She must have had a good reason to fight in the French army in the Hundred Years War because at that time it was very uncommon for a lady to serve in the army. I believe God called her to bring hope to the desperate soldiers in the army and to be a witness of His love for all. She had to have something to propel her to overcome her fears and be willing to die for Christ. She was not protected with wealth and status and had to find her way on her own. She was eventually burned at the stake after she was taken captive by her enemies because she was believed to be a heretic. Her enemies, the English, were greatly relieved after Joan had been killed, since she had brought so much success for the French army. She is a great role model for all young people.

World History Homework Six Answers - Student One

2009-03-09T16:04:13Z

VeronikaF: New page: VeronikaF in progress

VeronikaF in progress

World History Homework Five Answers - Student Two

2009-03-05T12:41:16Z

VeronikaF:

VeronikaF

1.List the "Five Pillars of Islam."

(A) '''Shahadah''' (submission to Allah, their God)

(B) '''Salah''' (Pray to Allah five times a day at fixed times while facing Mecca)

(C) '''Sawm during Ramadan''' (The Muslim must fast from dawn to Dusk from any food or drink during the month of Ramadan. This was a time for them to make repentance for their sins and remember the needy while still trying to come closer to Allah.)

(D) '''Zakat''' (Muslims must be charitable to the poor in other words, almsgiving)

(E) '''The Hajj''' (The pilgrimage to Mecca that is required of everyone once in their lifetime.)

3. Charles the Hammer, Pepin the Short, and Charlemagne: which one is your favorite, and why?

Pepin the Short must have been pressured greatly by his people to live up to his father’s name, the great “Charles the Hammer”. In A.D. 752 Pepin was anointed King of the Franks by the Pope. Because the Pope approved of Pepin the Short, the people highly respected Pepin as God’s chosen ruler. Pepin offered protection to the Church by his powerful army if the Pope would grant him a blessing. Pepin the Short knew he could gain more awe and respect from his subjects if they saw the Pope, who represents Jesus, bountifully bless him.
At that time, the Church in Rome was being attacked by the Lombards and the Pope sought help from the Franks since the Byzantine Empire did not want to interfere. Pepin helped remove the Lombards from Rome in A.D. 754. The relationship between the Catholic Church and the Franks increased because the Franks had kept their promise to aid the Church whenever it was in danger, while the ties between the Church and the Byzantines were weakened because they did not send help when it was needed.

4. Describe what you like about feudalism in Western Europe.

Feudalism helped society to flourish and its income to increase. I think that people, specifically peasants, who lived in Western Europe were tired of being ruled under one king, having to work like slaves and receiving barely enough to feed their families. They wanted a change as we all do. The fiefs were happy when they could start gaining some profit for themselves by working hard on the land owned by the lords who in turn hired vassals to oversee everything that was going on in the fields and their businesses. Even though the fiefs were very much like the slaves that used to work the plantations in America, they were given enough to eat and maybe even some land for their own if they harvested an excellent crop. There is an argument as to whether the fiefs were treated like slaves since the lords are like the plantation owners who hired overseers to watch how the slaves were progressing in the fields. There will always be different views on the subject.

5. Explain the difference between the Sunnis and the Shiites, and give examples of one country controlled by each.

The two branches of religion that Mohammed founded are the Sunnis and the Shiites. The main controversy between these two branches was the decision about who would succeed Mohammed. The Sunnis believe that the rightful leaders of the Muslims are the heirs of the first of the four caliphs, Mohammed’s successors, while the Shiites believed Ali, the fourth caliph, should be the Muslim leader. Since they could not make a peaceful decision, they separated and each chose to recognize their own leader. Additionally, the Sunnis and the Shiites disagree about Mahdi, “the rightly guided one”, the god who created all living things. The Shiites believe he was already present on earth and will return from hiding to govern his people righteously while the Sunnis consider that he has not yet come and gained his place in history. Iran is now ruled by a Shiite theocracy while Iraq’s government is led mostly by a Shiite government. The Tiny Bahrain, a group of 33 Persian Gulf islands, remains to this day the only nation in the world where a Shiite majority is led by a Sunni minority. I wonder what caused this to happen.

6. Current events: Comment on the table of Islamic populations by country. Do you notice anything interesting about it?

The countries which are over 50% Islamic are almost 100% Islamic and those underneath 50% are have a very low Islamic population. There is either an extremely large population of Muslims or a very low number of those who are Islamic. The reason for this is that when someone enters the Islamic religion he can never turn back or he shall be in danger of his life. When Islam has gained more than 50% of the population, everyone who is of another religion has no choice other than to convert to Islam or die while trying to practice their own faith. Islam forces people to convert to its religion and it does not let them choose for themselves, which results in an increase of the Islamic population in the world every year. When I saw the table of the Islamic population in the world, I was greatly surprised that so many people have converted to Islam. Unlike Christianity, Islam does not give its followers free will to choose between right and wrong. They have to obey what they are told.

7. Briefly describe four major civilizations or tribes in South America, as discussed in the lecture.

(A) Maya (A.D. 300-900) The Maya tribe was a Mesoamerican civilization known for its unique, fully-developed written language, which was the only one at that time noted in the pre- Columbian Americas. The tribe is well known for mathematical and astronomical systems which helped us discover things we could never have discovered without them.

(B) Moche (A.D. 200-700) The Moche tribe greatly thrived in northern Peru. They did not have many intellectual minds and were not politically organized. There were no classes or levels in their society. They all lived and shared a common elite culture. They spent a lot of their time painting exquisite ceramics, creating gold possessions, and building great huacas (great constructions) and irrigation systems.

(C) Incas (A.D. 1250-1537) The Incas were a civilization that flourished into a powerful tribe until a controversy weakened them against the Spanish. They were wonderful craftsmen and are widely known for their large gold earrings. They were a tribe of wealth and power. Most people think of the Incas when someone mentions the ancient civilizations in South America.

(D) Aztecs (A.D. 1200-1521) The Aztecs are known for playing ballgames, the use of a calendar, and customs of their ancestors. The only major difference is that the Aztecs were more war-like; the Aztecs were not intellectual. They themselves did not advance knowledge or civilization but used the methods of their predecessors.

H6. Do you think the term "faith" properly applies to any religion other than Christianity?

The term “faith” means believing in God and all that He has revealed. Some religions do not have a god. Many religions are only a way or practice on how to live your life according to what you think is just. In this case, I do not think the term “faith” could be properly applied since most people do not believe that there is even a god that exists. For other religions, such as Islam, the Muslims do have God or Allah, whom they respect greatly. There is definitely faith in this religion because God exists in Islam and the people believe in Him. They must be able to trust and put their fate into His hands. Faith has a specific meaning and it should be used properly.

World History Homework Five Answers - Student Two

2009-03-05T12:40:16Z

VeronikaF:

VeronikaF

1.List the "Five Pillars of Islam."

(A) Shahadah (submission to Allah, their God)

(B) Salah (Pray to Allah five times a day at fixed times while facing Mecca)

(C) Sawm during Ramadan (The Muslim must fast from dawn to Dusk from any food or drink during the month of Ramadan. This was a time for them to make repentance for their sins and remember the needy while still trying to come closer to Allah.)

(D) Zakat (Muslims must be charitable to the poor in other words, almsgiving)

(E) The Hajj (The pilgrimage to Mecca that is required of everyone once in their lifetime.)

3. Charles the Hammer, Pepin the Short, and Charlemagne: which one is your favorite, and why?

Pepin the Short must have been pressured greatly by his people to live up to his father’s name, the great “Charles the Hammer”. In A.D. 752 Pepin was anointed King of the Franks by the Pope. Because the Pope approved of Pepin the Short, the people highly respected Pepin as God’s chosen ruler. Pepin offered protection to the Church by his powerful army if the Pope would grant him a blessing. Pepin the Short knew he could gain more awe and respect from his subjects if they saw the Pope, who represents Jesus, bountifully bless him.
At that time, the Church in Rome was being attacked by the Lombards and the Pope sought help from the Franks since the Byzantine Empire did not want to interfere. Pepin helped remove the Lombards from Rome in A.D. 754. The relationship between the Catholic Church and the Franks increased because the Franks had kept their promise to aid the Church whenever it was in danger, while the ties between the Church and the Byzantines were weakened because they did not send help when it was needed.

4. Describe what you like about feudalism in Western Europe.

Feudalism helped society to flourish and its income to increase. I think that people, specifically peasants, who lived in Western Europe were tired of being ruled under one king, having to work like slaves and receiving barely enough to feed their families. They wanted a change as we all do. The fiefs were happy when they could start gaining some profit for themselves by working hard on the land owned by the lords who in turn hired vassals to oversee everything that was going on in the fields and their businesses. Even though the fiefs were very much like the slaves that used to work the plantations in America, they were given enough to eat and maybe even some land for their own if they harvested an excellent crop. There is an argument as to whether the fiefs were treated like slaves since the lords are like the plantation owners who hired overseers to watch how the slaves were progressing in the fields. There will always be different views on the subject.

5. Explain the difference between the Sunnis and the Shiites, and give examples of one country controlled by each.

The two branches of religion that Mohammed founded are the Sunnis and the Shiites. The main controversy between these two branches was the decision about who would succeed Mohammed. The Sunnis believe that the rightful leaders of the Muslims are the heirs of the first of the four caliphs, Mohammed’s successors, while the Shiites believed Ali, the fourth caliph, should be the Muslim leader. Since they could not make a peaceful decision, they separated and each chose to recognize their own leader. Additionally, the Sunnis and the Shiites disagree about Mahdi, “the rightly guided one”, the god who created all living things. The Shiites believe he was already present on earth and will return from hiding to govern his people righteously while the Sunnis consider that he has not yet come and gained his place in history. Iran is now ruled by a Shiite theocracy while Iraq’s government is led mostly by a Shiite government. The Tiny Bahrain, a group of 33 Persian Gulf islands, remains to this day the only nation in the world where a Shiite majority is led by a Sunni minority. I wonder what caused this to happen.

6. Current events: Comment on the table of Islamic populations by country. Do you notice anything interesting about it?

The countries which are over 50% Islamic are almost 100% Islamic and those underneath 50% are have a very low Islamic population. There is either an extremely large population of Muslims or a very low number of those who are Islamic. The reason for this is that when someone enters the Islamic religion he can never turn back or he shall be in danger of his life. When Islam has gained more than 50% of the population, everyone who is of another religion has no choice other than to convert to Islam or die while trying to practice their own faith. Islam forces people to convert to its religion and it does not let them choose for themselves, which results in an increase of the Islamic population in the world every year. When I saw the table of the Islamic population in the world, I was greatly surprised that so many people have converted to Islam. Unlike Christianity, Islam does not give its followers free will to choose between right and wrong. They have to obey what they are told.

7. Briefly describe four major civilizations or tribes in South America, as discussed in the lecture.

(A) Maya (A.D. 300-900) The Maya tribe was a Mesoamerican civilization known for its unique, fully-developed written language, which was the only one at that time noted in the pre- Columbian Americas. The tribe is well known for mathematical and astronomical systems which helped us discover things we could never have discovered without them.

(B) Moche (A.D. 200-700) The Moche tribe greatly thrived in northern Peru. They did not have many intellectual minds and were not politically organized. There were no classes or levels in their society. They all lived and shared a common elite culture. They spent a lot of their time painting exquisite ceramics, creating gold possessions, and building great huacas (great constructions) and irrigation systems.

(C) Incas (A.D. 1250-1537) The Incas were a civilization that flourished into a powerful tribe until a controversy weakened them against the Spanish. They were wonderful craftsmen and are widely known for their large gold earrings. They were a tribe of wealth and power. Most people think of the Incas when someone mentions the ancient civilizations in South America.

(D) Aztecs (A.D. 1200-1521) The Aztecs are known for playing ballgames, the use of a calendar, and customs of their ancestors. The only major difference is that the Aztecs were more war-like; the Aztecs were not intellectual. They themselves did not advance knowledge or civilization but used the methods of their predecessors.

H6. Do you think the term "faith" properly applies to any religion other than Christianity?
The term “faith” means believing in God and all that He has revealed. Some religions do not have a god. Many religions are only a way or practice on how to live your life according to what you think is just. In this case, I do not think the term “faith” could be properly applied since most people do not believe that there is even a god that exists. For other religions, such as Islam, the Muslims do have God or Allah, whom they respect greatly. There is definitely faith in this religion because God exists in Islam and the people believe in Him. They must be able to trust and put their fate into His hands. Faith has a specific meaning and it should be used properly.

World History Homework Five Answers - Student Two

2009-03-04T13:55:14Z

VeronikaF:

VeronikaF in progress