ECN 212 ASU: Homework Week 1
Questions and All Correct Answers
2026-2027 Updated.
Which of the following statements is consistent with the concept of scarcity? - Answer
consumers and societies are not able to satisfy all their wants with their available resources
Which of the following is consistent with the definition of opportunity costs? - Answer
opportunity cost is the highest valued alternative given up when a choice is made
At a fruit stand, Dhruv is told that he may select one of the following fruits for free: an apple, a
mango, or a pomegranate. Dhruv prefers mangoes to pomegranates and pomegranates to
apples, so he selects a mango. The opportunity cost of the mango is: - Answer a pomegranate
Why is money important in the marketplace? - Answer money reduces the costs of
transactions and eliminates double coincidence of wants
A market is in equilibrium when - Answer quantity supplied and quantity demanded are equal
An outcome that maximizes the differnce between social benefits and social costs is known as -
Answer efficient outcome
Which below is a common criticism of the models used by economists? - Answer they are too
unrealistic or abstract
What is the typical sequence of steps when applying the scientific method to the study of
economics? - Answer Observation, Hypothesis, Data Collection, Refinement of hypothesis,
Theory
Suppose Celine has $200 to spend on apples or bannans. Apples cost $5 and a bag and bananas
cost $20 per bunch. What is the slope of Celine's budget constraint expressed in terms of
bunches of bananas per bag of apples? - Answer - 1/4
Kelli is buying breakfast supplies, and she has $120 to spend on cereal and bread. Each box of
cereal costs $4 and each loaf of bread costs $3. Her budget constraint is represented on the
graph. If the price of a box of cereal increases to $6, determine the slope of Kelli's new budget
constraint in terms of loaves of bread per box of cereal. - Answer -2
Questions and All Correct Answers
2026-2027 Updated.
Which of the following statements is consistent with the concept of scarcity? - Answer
consumers and societies are not able to satisfy all their wants with their available resources
Which of the following is consistent with the definition of opportunity costs? - Answer
opportunity cost is the highest valued alternative given up when a choice is made
At a fruit stand, Dhruv is told that he may select one of the following fruits for free: an apple, a
mango, or a pomegranate. Dhruv prefers mangoes to pomegranates and pomegranates to
apples, so he selects a mango. The opportunity cost of the mango is: - Answer a pomegranate
Why is money important in the marketplace? - Answer money reduces the costs of
transactions and eliminates double coincidence of wants
A market is in equilibrium when - Answer quantity supplied and quantity demanded are equal
An outcome that maximizes the differnce between social benefits and social costs is known as -
Answer efficient outcome
Which below is a common criticism of the models used by economists? - Answer they are too
unrealistic or abstract
What is the typical sequence of steps when applying the scientific method to the study of
economics? - Answer Observation, Hypothesis, Data Collection, Refinement of hypothesis,
Theory
Suppose Celine has $200 to spend on apples or bannans. Apples cost $5 and a bag and bananas
cost $20 per bunch. What is the slope of Celine's budget constraint expressed in terms of
bunches of bananas per bag of apples? - Answer - 1/4
Kelli is buying breakfast supplies, and she has $120 to spend on cereal and bread. Each box of
cereal costs $4 and each loaf of bread costs $3. Her budget constraint is represented on the
graph. If the price of a box of cereal increases to $6, determine the slope of Kelli's new budget
constraint in terms of loaves of bread per box of cereal. - Answer -2
