ECO 372 Week 1 DQs v2

This file of ECO 372 Week 1 Discussion Questions shows the solutions to the following problems:

1) The United States is an example of pure capitalism.2) Price ceilings and price floors have almost always been successful and seldom create a shortage or a surplus.3) I have used the concept of opportunity costs this week.4) I could explain what would happen to the price and quantity of a good or service if demand increased and supply decreased. (You do not need to quantify your response, simply use the terms increase, decrease, or it depends on the magnitude of the changes. Provide a scenario that might bring this about and use supply and demand curves for your explanation.)5) Price is a poor way of rationing scarce resources. [This question needs to be addressed both from the prospective of a consumer (demand) and a provider (supply). The text defines a scarce resource as anything that commands a price.]6) There are three types of unemployment. 7) The number one trading partners with the United States are Russia, Germany, and France.8) A firm will maximize profits or minimize losses when they produce at a point where marginal costs equal marginal revenue.9) Economic activity is not a zero sum game. Whenever trade takes place in a market without force or fraud both parties can win.10) The law of demand states that demand increases as the price goes down.11) I am optimistic about the economy over the next two years and how it will impact my organization.