The Northville School Board has proposed this budget for the upcoming school year:
20% for school staff's salaries
50% for school maintenance and upkeep
10% to refurbish the gymnasium
5% to upgrade the computer lab hardware
10% for new instruments for the music department
5% for new sports equipment
After a brief discussion, the school board revised the budget as follows:
* 20% for school staff's salaries 50% for school maintenance and upkeep 10% to
refurbish the gymnasium 10% to upgrade the computer lab hardware 5% for new
instruments for the music department
* 5% for new sports equipment
In this case the opportunity cost for: - (correct answer)(upgrading the computer lab
hardware) was (getting new instruments)
A company is struggling to finish the required accounting work for its financial year-end.
The employees are unwilling to stay late to complete the work. If the company does not
complete its work, it will be in serious trouble. So, the managers decide to pay the staff
a bonus for every hour they stay during this period. After the employees worked extra
hours for a few days, the work was completed and everyone was happy.
What was the incentive for the employees in this scenario? - (correct answer)money
Which two sentences describe incentives? - (correct answer)- The person to complete
the work first will be rewarded.
- Harry's boss also announces that people working overtime will be eligible for a bonus.
, John works for a factory and receives a weekly paycheck, He typically places 3% of
each paycheck into a bank savings account.The money placed in the savings account ()
the economy.
In addition to providing savings accounts to customers, like John, the bank invests
money in several businesses. The money that the bank invests () the economy. -
(correct answer)1. (leaks out from)
2. (is injected back into)
The government of a country has introduced a few economic policies for the current
financial year. Which of these policies is John Maynard Keynes most likely to disagree
with? - (correct answer)Food exporters can export as much wheat as they want, while in
the past they were limited to 50 tons.
Entrepreneurs are no longer restricted from importing raw materials.
What is money supply? - (correct answer)The total amount of money circulating in the
economy
Match the scenarios with the economic concepts they illustrate. - (correct answer)The
rising price of gold causes people to buy silver jewelry instead. = substitution effect
When the price of gas increases, people drive less. = income effect
A new factory in a village provides livelihoods for the villagers. = positive externality
A new factory in a village causes noise pollution. = negative externality
What economic concept is applied in this statement?
20% for school staff's salaries
50% for school maintenance and upkeep
10% to refurbish the gymnasium
5% to upgrade the computer lab hardware
10% for new instruments for the music department
5% for new sports equipment
After a brief discussion, the school board revised the budget as follows:
* 20% for school staff's salaries 50% for school maintenance and upkeep 10% to
refurbish the gymnasium 10% to upgrade the computer lab hardware 5% for new
instruments for the music department
* 5% for new sports equipment
In this case the opportunity cost for: - (correct answer)(upgrading the computer lab
hardware) was (getting new instruments)
A company is struggling to finish the required accounting work for its financial year-end.
The employees are unwilling to stay late to complete the work. If the company does not
complete its work, it will be in serious trouble. So, the managers decide to pay the staff
a bonus for every hour they stay during this period. After the employees worked extra
hours for a few days, the work was completed and everyone was happy.
What was the incentive for the employees in this scenario? - (correct answer)money
Which two sentences describe incentives? - (correct answer)- The person to complete
the work first will be rewarded.
- Harry's boss also announces that people working overtime will be eligible for a bonus.
, John works for a factory and receives a weekly paycheck, He typically places 3% of
each paycheck into a bank savings account.The money placed in the savings account ()
the economy.
In addition to providing savings accounts to customers, like John, the bank invests
money in several businesses. The money that the bank invests () the economy. -
(correct answer)1. (leaks out from)
2. (is injected back into)
The government of a country has introduced a few economic policies for the current
financial year. Which of these policies is John Maynard Keynes most likely to disagree
with? - (correct answer)Food exporters can export as much wheat as they want, while in
the past they were limited to 50 tons.
Entrepreneurs are no longer restricted from importing raw materials.
What is money supply? - (correct answer)The total amount of money circulating in the
economy
Match the scenarios with the economic concepts they illustrate. - (correct answer)The
rising price of gold causes people to buy silver jewelry instead. = substitution effect
When the price of gas increases, people drive less. = income effect
A new factory in a village provides livelihoods for the villagers. = positive externality
A new factory in a village causes noise pollution. = negative externality
What economic concept is applied in this statement?
