Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Solutions to Problems
CHAPTER 1
1.1 Answers will vary, but should include the notion that each activity provides benefits in the form
1.2 The average cost is $1.43 ($39.99 / 28). The marginal cost is $0.
1.3 (a) From the standpoint of the women’s shelter, Monique is free. From Monique’s standpoint, she
1.4 Bill Gates does face scarcity because resources are limited. A person’s net worth does not change
2.1 Answers will vary.
2.2 (a) This is an example of a microeconomic concern since it addresses a potential change in
3.1 Answers will vary.
303
Copyright © 2017 Pearson Education, Inc.
Solutions to Problems 304
3.2 (a) positive
3.3 (a) Each state should allow the market to provide what people want. Since smoking marijuana is
(b) Some argue that using marijuana is associated with reduced productivity that has a cost to the
(c) Legalized marijuana has a number of fairness issues around it. First, a lot of people believe
(d) Tax revenue would likely fall in those states that had legalized marijuana use prior to its
3.4 Answers will vary.
3.5 (a) This statement confuses correlation and causation. There is most likely a correlation between
(b) This statement is an example of the post hoc fallacy. Just because Cassandra watched the
(c) This statement is an example of the fallacy of composition, which is the erroneous belief that
Copyright © 2017 Pearson Education, Inc.
