..ooo Verizon 10:59 AM 84% ECON 201 Chapter 01 Problem... ECON 201 Elias Chapter
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Question
..ooo Verizon 10:59 AM 84% ECON 201 Chapter 01 Problem... ECON 201 Elias Chapter 1 Problem Set The Five Foundations of Economics 1. What role do ncentives play in each of the following situations? (a) You learn that you can resell a ticket to next week's homecoming game for twice what you paid (b) A state government announces a "sales tax holiday" (i.e., sales tax won't be charged for purchases) for back-to-school shopping during one week each August 2. Suppose that Colombia is good at growring coffee but not very good at making computer software, and that Canada is good at making computer software but not very good at growing coffee. If Colombia decided to grow only coffee and Canada only made computer software, would both countries be better or worse of? Can you think of a similar example from your life? 3. After some consideration, you decide to hire soneone to help you move. Wouldn't it be cheaper to move yourself Do you think this is a rational choice? Explain your response. . The website ultrinsic.com has developed an "ulterior motive that causes the person to have an intrinsic love of knowledge" At Ultrinsic, students pay a small entry fee to compete in grades-based contests for cash prizes. Suppose that 20 students from your economics class each pay $20 to enter a grades-based contest. This woukd create a S400 prize pool. An equal share of the S400 pot is awarded at the end of the term to each contestant who carns an A in the course. If four students earn A's, they each receive $100. If only one student earns an A, that person gets the entire $400 pot. What econonic concept is Ultrinsie harnessing in order to encourage participants to learn more? Courses Calendar TodoNotifications MessagesExplanation / Answer
Answer 3:
If Columbia decided to specialize in the production of coffee, it could trade coffee to Canada in EXCHANGE for computer software. This process illustrates profits made from specialization and trade. Both countries have a comparative advantage in producing one particular good. Columbia has ideal coffee-growing conditions, & Canada has a workforce that is more adept at writing software. Since each country specializes in what it does best, they are able to produce more value than what they could produce by trying to make both products on their own.
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