ECO 110HA Notre Dame College Economics for Life Questions Attached is a word document containing the midterm questions as well as screenshots of the inform | Course Hero
ECO 110HA Notre Dame College Economics for Life Questions Attached is a word document containing the midterm questions as well as screenshots of the information needed from my textbooks.
The screenshot provides the information you will need to answer question 2 ECO110HA: Economics for Life
Midterm Exam
In this module you will complete the Midterm Exam. This exam covers materials from the first
half of the course. For this exam, you will download the exam word document from the course
menu. The questions should be written succinctly, using the proper terminology, while showing
and explaining all work.
Submit the Midterm Exam to the Dropbox no later than Sunday 11:59 PM EST/EDT. (This
Dropbox basket is linked to Turnitin.)
1. You have made the decision to pursue higher education. Describe the economists view of
how a decision like that is made. Using marginal analysis, make sure you evaluate the
rationality of the decision and explain why the following statement is irrational: “Higher
education is priceless, so everyone should pursue a degree no matter the cost.
2. Recall your readings about Shaq moving furniture and playing basketball. Use both absolute
and comparative advantage to explain the following: Suppose you have one partner for a
school project requiring both math and writing skills. If you are better than your partner at
both math and writing, does this mean you should be responsible for both parts? Use
comparative and absolute advantage to explain.
3. The Econville News reports the invention of a machine that allows cows to milk themselves.
Provide a brief written description/explanation of the effect of this news on the equilibrium
price and quantity of milk.
4. The Econville News reports that drinking at least 8 ounces of milk a day increases bone
density 10% over a life time. Provide a brief written description/explanation of the effect of
this news on the equilibrium price and quantity of milk.
5. Consider a time in your life when you have benefited from an externality and a time when
you have suffered from an externality. Make sure to clearly describe your role and the type
of externality. What is your opinion about the role of government in each of these situations?
Economics for Life
111
68. Why Should the World’s Best Furniture Mover
Never Move Furniture?
Just because someone is the best at doing a job doesn’t mean
she or he is the best person to do the job. Consider again, for
example
, our 7-foot 2-inch, 300-plus-pound friend Shaquille
O’Neal again. Suppose Shaq gets traded and decides to move
his household belongings. There may be no one in the world
able to move furniture as quickly and easily as powerful Shaq.
So should he move his own furniture? Answer: Absolutely not!
The economic principle of comparative advantage states
that a task should be done by whoever has the lowest opportu-
nity cost of completing the task. Even though Shaq could move
his furniture more quickly than a typical 150-pound mover, he
should pay a mover to move his furniture because Shaq’s op-
portunity cost of time is so high. If Shaq spent his time moving
furniture, he would forgo great opportunities, such as playing
basketball in front of thousands of fans, doing commercials that
would earn many thousands of dollars, or taking a luxurious
vacation to anywhere he wishes. Shaq has comparative advan-
tage in playing basketball and doing commercials; the mover
has comparative advantage in moving furniture. Both should
specialize in performing those tasks for which they have com-
parative advantage.
69. Why Should Farmers Hate Years When the Weather
Is Great for Farming?
Good weather increases crop yields. If farmer X’s crop yields
increase while all other farmers’ yields stay the same, then
farmer X will be better off. But if good weather increases crop
yields on all farms, all farmers
may be worse off. Two reasons
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