Economics Homework One Answers - Student Six

Seth P.

1.A Wii is a good. A theme park is a service.

Excellent.

2.A meal at McDonald's costs the gas, the food, and taxes. The cost of the food includes the employees' pay, the building, the utilities, and the delivery of food and paper products. A meal at home only costs to buy the food from the store and time spent cooking it. So a meal at home is cheaper because you don't have to pay so many transaction costs.

Superb, but note that the cost of food itself at McDonald's is not a transaction cost. Costs tacked onto the food, such as taxes, are.

3.Something is scarce if you have to pay money for it because there is a limited amount of that thing. If there is less of something people are willing to pay more money for it if it is something they need or want, like a Wii at Christmas time. People exaggerate scarcity in their minds when they want to sell something for a lot of money. They make it seem like there are only a few so people will pay more money for it.

Terrific.

4.The “invisible hand” is the free people controlling a country and the government only controlling the military.

Interesting, but not enough economics in this answer. Minus 1. See model answers once they are completed.

5.In the parables of the treasure in the field and the pearl of great price, they found something so valuable it was worth all their possessions because there was nothing like it in the world. The spiritual point is they sold everything they had to go to heaven and be with Jesus. They traded earthly possessions for heavenly ones. The Gospel of Matthew might have more economic parables than the Gospel of Mark because Matthew was a tax collector and understood money better than most people.

Excellent, and plus one for the extra credit.

6.Caveat emptor (let the buyer beware) is when you see something that is so awesome you have to have it. You rush to the store to buy it. This means you should do your research first and make sure it is worth the money and not buy something pathetic and then find out there is something better. Carpe diem (seize the day) means don't waste your time. Be decisive. Don't waste all your life and then wish you had done profitable stuff. Seize the day and don't waste opportunities.

Terrific.

8. The saying “Money is a good servant, but a poor master.” means if you have money, you need to make it work for you and not the other way around. If you are working for it, you will end up with a bunch of stuff you don't need or want. For example, if money is your servant you can go into a store and only get what you need. But if money is your master and you go into a store you will buy as much as you can and still want to get more money and buy more stuff.

Good short essay. 20/20.

60/60 (including extra credit), plus 20/20 for short essay. 80/80. Great start!--Andy Schlafly 09:42, 13 September 2009 (EDT)