Economic+Questions

Economics Questions and Scenarios Answer each question

1. What is the difference in the cost of buying a coke with no ice from the machine in the mall entryway and buying one with ice from the vendor at the other end of the mall (1⁄4 mile away) if the price of both cokes is 75¢? The difference is that the coke that is sold with no ice is closer to the door when people walk in, then the coke on the other side of the mall, so people would buy the coke that is closer because it has more because there is no ice and because it is closer.

2. Suppose that a series of hurricanes devastates the Bahamas. Most buildings are destroyed; there are many deaths; and all production is disrupted. Predict what would happen if, instead of sending old clothes and foreign aid packages, the United States handed out $50/day to any Bahamian, of any age, who showed proof of residency? What would happened would be that the people would most likely abuse the money they get and they will spend it on other stuff other then what they need, and what if the hurricane destroyed the stores, they wont be able to buy food or clothing.

3. Why do movie theaters charge different people different prices for tickets, but charge everyone the same price for popcorn? The theaters charge different prices because the main profit is in the snacks. The tickets are set low to get the people in, and then they earn the money selling the popcorn at a high price

4. Create a scenario where demand for a product may be high. DTV converter boxes are high in demand for the conversion to digital T.V.

5. Create a scenario where demand for a product may be low. The demands for cars are low because of the economy

6. Create a scenario where a business may increase the supply of a product. If there product is selling a lot with high demand.

7. Create a scenario where a business may decrease the supply of a product. If a business wants to sell there product for a high price because of high demand or because the product isn’t selling that well.

Answer the next 3 questions in the following manner: Choice a: Consequence a:

Choice b: Consequence b:

8. Micaela received $50 from her aunt for her birthday and decided to go to the mall to look over her choices. After visiting several stores, she has decided she could purchase blue jeans of her favorite brand, CDs from the music store, movie passes, or some food from the food court. Use newspaper ads, online resources, and your own experience to assign prices to these items to determine Micaela’s options. Then, determine the consequence of each choice. Choice A: Buy CDs Consequence A: Will not have enough money left to purchase anything else and the CDs could break. Choice B: Movie Passes Consequence B: Will not have enough money for anything else and the passes can only be used once. 9. Alec planned to go skate boarding this afternoon with his friend Terry at 1:00 p.m. He has to be home to help his mother prepare dinner at 5:00. An hour ago, he was asked to mow the neighbor's lawn. The neighbor will pay extra if Alec will do the job this afternoon. What are Alec’s options, what are the consequences of each choice? Choice A: Skate Board with terry Consequence A: Won’t get paid for doing lawn and may not make it to help his mother prepare for dinner. Choice B: Mow the neighbor’s lawn Consequence B: Won’t be able to play with Terry at 1pm, but may be able to get home at five 10. William and Cruz are in charge of the refreshments for the Burdick School movie. Their budget for snack food is $50. They are considering popcorn, pretzels, chips, nuts, and nachos. Use newspaper ads and your own experience to assign prices to these items. What are their options? What are the consequences of each choice? Choice A: Buying Popcorn to sell

Consequence A: Can’t buy anything else, but popcorn is a great movie snack.

Choice B: Buying Nachos to sell.

Consequence B: Can’t buy anything else to sell.