Economics Homework Two Answers - Student Twenty-One

Michelle F- done

1. The supply of a good, and the demand for that good, determine both the price and quantity at which the good is sold (assuming it is a free market).

Correct.

2. Quantity = 12 Price = $18

Correct again!

3. When the supply of a good increases, the price decreases. The demand is the same, but the supply curve meets the demand curve at a lower price. When the demand increases, the price will go up, because the quantity is the same, but more people want it. For example, ice cream. The demand for ice cream has risen, even in this economy, and the ice cream companies have seen that they can charge more for their product. But there are so many ice cream companies supplying this good that the price is kept low by constant competition. The free market at work is a marvelous thing.

Terrific answer, may use as a model!

4. A lowered price creates a higher demand. More people are willing to pay $0.99 a pound for grapes than are willing to pay $1.50 a pound. So more people begin buying the grapes, which causes the supply to go down, thereby solving the grocery stores problem of an oversupply of fruit.

Superb, with realistic pricing. Could use this as a model also.

5. (A) According to the chart, they built 600 “obstructed view” bleacher seats, which means they make 3000 a game.

(B) Absolutely oppose. For two reasons. One, I don’t like the government getting overly involved in the economy. Two, it would keep the prices unnaturally low, so the seats would always be in demand. But the quantity would not grow to meet the rising demand, creating a shortage.

Superb again!

6. Money is a measure of worth. Your time has value, both in use, and in exchange. Why? Because while you are, lets say, stuck in traffic on the way to a class, you could have been finishing homework, which have freed up time to do more work, or given you time to use at a job. So that time had value in use for things you could have been doing. Time is needed to do anything that makes money.

Fantastic answer.

7. In those countries, the government has set the price for various health care services artificially low so that they can afford to pay for it. Which makes it look very bleak to be a doctor in those countries, especially with the cost of medical school, thereby creating a shortage of doctors. So the price went down, but the demand stayed the same, causing the quantity to go down as well. Which obviously creates a shortage. Hence, waiting lists in countries with government controlled health care.

Superb. Note, however, that the demand usually goes up when the price goes down. In the case of medical services, however, it may be an "inelastic" service that has relatively little change in demand due to a reduction in price.

Honors

10. Discuss any aspect of the economics of health care.

 Health care is a very important issue in politics today. Is it because politicians actually care about the health of their constituents, or because health care represents such a large part of the economy and they want more power in that area? Or because of all the things they can slip into the bill, like abortion funding, services for illegal immigrants, and various other issues. These all would create a larger demand, without doing anything for the supply. 
 Liberals would have you believe that the system is totally broken and the only solution is government control. Well, it’s obviously not working in other countries, so that’s probably not the right answer. 
 Some people cannot afford to pay for insurance or health care. Sounds like it should be a simple fix, right? Well, who should be fixing it? Not the government, for sure. Their solution would maybe not start with total control, but it would very likely end there.  Each and every American has the right to “ life, liberty, and the pursuit of happiness. Not the right to “ stand and justify their existence”. Not to “ pay the government to run my life”. Not even to “ have the government protect me from myself”. The founding fathers believed in freedom. There wasn’t even income tax! If they saw the level of government involvement in the economy, they would be rolling in their graves. No government has the ability to manage your finances, or your health care, anything else that is a fundamental right.
 The system in America is one of the best in the world. If our system is so good, then why are we trying to imitate those that are totally failed? It’s not like the economy in the rest of the world is doing much better than ours. Maybe our previously booming economy was due to the health care system that made up one-sixth of it.

Terrific answer, could use as the model.

Perfect paper! 70/70 plus 40/40 equals 110/110. Congratulations!!!--Andy Schlafly 13:48, 20 September 2009 (EDT)