Economics Homework One Answers - Student Nine

AllieT

1. An example of a good that was not mentioned in the lecture would be an Ipod or MP3 player. An example of a service that was not mentioned in the lecture would be an accountant computing the amount of revenue a business had earned.

Excellent.

2. Eating at home for dinner would be cheaper for my family. While going to McDonald’s for dinner can be faster, the cost of the food could and would outweigh the cost of a dinner at home. In addition, you would incur the expense of gasoline for having to drive to the fast- food restaurant.

Good, but I asked for two transaction costs. Gas is one. (Minus 1).

3. Scarcity of a good or service is the act of not having enough of the good or service to satisfy the demands of the buyer. An example, when the Wii was first released there was a high demand for this item. Due to the high demand, the quantity of the game console was limited and the price was high. Many people were willing to pay this high price in order to satisfy their want. Once the demand subsided, the price of the Wii’s dramatically dropped.

Superb.

4. The “invisible hand” is having the option for individuals to help themselves as well as help others at the same time. To explain, a doctor can decide to keep their offices open later to accommodate working individuals. This decision will benefit both the doctor and the patient; the doctor will make more money and the patient will not have to rearrange their work schedule.

Excellent.

5. Economic Point- The Servant gained by not having to pay his debt to his Master. When he sought to have a debt repaid to him, he would have made a profit from the transaction.

Spiritual Point- The Lord taught us to forgive everyone. We should forgive all debts that our neighbor’s inflict upon us. We should always forgive because our Father in Heaven forgives us likewise.

Extra Credit: Matthew, the writer of the Book of Matthew, was a tax collector for Herod Antipas. His reason for writing the book of Matthew was to persuade the Jews that Jesus Christ is the promised Messiah. The Jews could relate more to economic parables because of the collection of taxes.

Good analysis on the economic and spiritual points. The parables do not relate to taxes, but plus one for pointing out that Matthew was a tax collector and thus more economically aware.

6. “Carpe diem” means, “seize the day” in Latin. To me, this means never let a moment be wasted. Do not let fear or doubt influence you actions. Go and accomplish your goals with your head held high and with confidence. Seizing the day means to take every opportunity you are given and be positive and willing to act upon that moment in time. You never know when a disaster or misfortune may strike. Do all that you can while you still have the chance to do so.

Excellent.

60/60, with extra credit. Good start!--Andy Schlafly 10:11, 13 September 2009 (EDT)