Question

5.	At your local family fun center, miniature golf is $12 per person for unlimited rounds in a day, while each go-kart session is $8. If you played 3 rounds of miniature golf and rode the go-karts 3 times, what was the marginal cost of the3rd round of miniature golf? What was the marginal cost of the3rd go-kart session?
	$0 for miniature golf and $24 for go-karts $35 for miniature golf and $24 for go-karts $12 for miniature golf and $24 for go-karts $0 for miniature golf and $8 for go-karts

6.	How can a country producing more capital goods rather than consumption goods end up in the future with a PPF that is larger than a country that produces more consumption goods and fewer capital goods?
	The PPF for consumption goods will always be greater than the consumption for capital goods. Purchasing capital goods is considered an investment that helps stimulate the economy. More people purchase capital goods. Capital goods are more expensive than consumption goods.

7.

The issue of climate change has risen to the forefront of economic discussion, especially among industrialized countries such as the United States and those in Europe. Critics, however, argue that greater environmental regulations restrict economic growth. How might relatively wealthy countries react differently to this tradeoff compared to poor countries?

Wealthy countries understand the tradeoff and concerns about the environment, and so climate change becomes more of a priority. Wealthy countries have the money and resources to deal with environmental regulations whereas poor countries do not. Wealthy countries do not have climate change problems; therefore, the tradeoff is minimal. Wealthy countries care more about the price of the regulations and avoid climate change at all costs.

8.	According to By the Numbers, in which period did corn and soybean production increase more in terms of yield per acre?
	1990 to 2010 1965 to 1985 1990 to 2015 1965 to 1990

9.	The economy can grow as a result of all of the following EXCEPT:
	technological advances. increasing human capital. increasing government policy. an increase in the quality of resources.

10.	In which of the following questions will technology play the greatest role?
	Who will get the goods? What goods will be produced? How will the goods be produced? How will the system accommodate change?

11.	In relation to the Production Possibilities Frontier (PPF), which of the following demonstrates unemployment?
	a point on the PPF a point inside the PPF a point to the right of the PPF a point outside the PPF

12.	According to By the Numbers, during the period between 1997 and 2014, in how many years did the U.S. trade balance improve from the previous year and in how many years did the trade balance deteriorate (assume the trade balance deteriorated from 1996 [not shown in the figure] to 1997)?
	4 years 5 years 6 years 3 years

13.

Why does America use heavy street-cleaning machines driven by one person to clean the streets, while China and India use many people with brooms to do the same job?

The United States has a huge labor force that is willing to work at minimum wage; however, the United States chooses to use the street cleaning machines because they are faster. The United States has scarce capital resources and China and India have scarce human resources. China and India have a great abundance of capital resources; however, the country would prefer to use individuals to clean the streets. China and India have greater labor forces than the United States and the United States has more capital resources available to it than China or India does.

14.

At the 2015 White House Science Fair, a $240 million private-public initiative was announced for the purpose of boosting STEM (science, technology, engineering, and math) education, as the United States continues to fall behind other industrialized nations in student achievement in these fields. How would spending on STEM initiatives today, which leads to higher costs in the near term, pay off in future benefits to the economy?

Investing in education will increase costs today and not provide many benefits in the future. Investing in education will only lead to short-term productivity. Investing in education will cause the demand for education to increase and decrease the availability of programs for consumers to enjoy. Investing in education will lead to long-term productivity.

15.	You normally stay at home on Wednesday nights and study. However, next Wednesday night, your best friend is having his big 21st birthday party. You have to make a choice. This is an example of:
	Incentives Rational decisions Thinking on the margin Opportunity costs

Answer 1

5) answer will be $0 for miniature golf and $8 for go-karts. Since $12 of golf is for unlimmited to there is no marginal cost in any round where as each round of go kart is $8 the marginal cost wll be 8.

6) Purchasing capital goods is considered an investment that helps stimulate the economy. will be the answer. This is because there is a trade off in short term and long term. If in short term resources are used to produce capital goods then in long term it will stimulate the economy. Hence it is true that the ppf of capital goods will be higher.

7) Wealthy countries have the money and resources to deal with environmental regulations whereas poor countries do not

9) increasing government policy is the naswer. Rest all option is meant to increase productivity .

10) How will the goods be produced? is the answer. The technology help is improving the way a good can be produced more effeciently.

11) a point inside the PPF is the answer. It means that the resources that could be used is not being used as it is inside the curve.

15) Opportunity cost is the answer. You are giving up on studies to go for the party.