Economics homework help

Unit I Assignment Worksheet

 

You will complete this assignment in two parts.

 

• Part 1 requires a short written response.
• Part 2 involves completing a worksheet on which you will show your work and provide your answers to the questions listed below.

 

Examples of how to complete these questions can be found in the Unit I Introduction and associated videos.

 

All components of Parts 1 and 2 of the assignment will be completed using this worksheet, on which you will show your work and provide your answers to the questions listed. Once you have completed all components of the assignment, save and upload this worksheet into Blackboard. Name your file “Unit I Assignment Worksheet–YourName” (replace “YourName” with your own name). Make sure you include your name and class section at the top of this worksheet.

 

Part 1

Tyson and Ella work at the Ruby Red Movie Theater in town. After work, they decide to watch a movie. After purchasing their tickets, they stop by the concession stand and purchase popcorn, drinks, and candy. Use the circular flow diagram to describe the purchases that Tyson and Ella made and the services and goods that were provided to them.

 

Your response must be at least 75 words, which you can provide in the space below. Once you have completed Part 1, please complete Parts 2A–2E, which begin on the next page.

 

 

 

 

 

 

 

 

 

 

Part 2

Note: An example of how to make these calculations is provided in the Unit I videos Opportunity Cost and Law of Comparative Advantage.

 

Background Information

As mentioned in Part 1 of this assignment, Tyson and Ella work at Ruby Red Movie Theater. Tyson can produce 100 bags of popcorn or 50 hot dogs in one hour. His coworker, Ella, can produce 100 bags of popcorn or 30 hot dogs in an hour. Answer the following five questions based on this information. Remember to show your work.

 

		Production By
Hourly Production		Tyson		Ella
Bags of Popcorn Or		100		100
Hot Dogs		50		30

 

 

Part 2A

If Tyson and Ella attempted to produce both popcorn and hot dogs, how many bags of popcorn and hot dogs could each produce individually per hour? What would be the total number of bags of popcorn and hot dogs produced per hour by the two workers combined? (Show your work below.)

 

		Each Trying to Produce Both
		Production of Popcorn		Production of Hot Dogs
Tyson
Ella	+		+
Total

 

 

 

 

 

 

 

 

 

Part 2B

Calculate the opportunity cost of producing bags of popcorn for each worker. (Show your work.)

 

Opportunity Cost of Popcorn

 

Tyson:
	Hot Dogs Made
÷	Bags of Popcorn Made
=
	For every 1 bag of popcorn Tyson makes, he sacrifices						hot dogs.

 

 

Ella:
	Hot Dogs Made
÷	Bags of Popcorn Made
=
	For every 1 bag of popcorn Ella makes, she sacrifices						hot dogs.

 

		Opportunity Cost of Producing Popcorn
Tyson
Ella

 

Question	Answer (Tyson or Ella)
Who has lowest opportunity cost of producing popcorn?

 

 

 

 

 

 

 

 

Part 2C

Calculate the opportunity cost of producing hot dogs for each worker. (Show your work.)

 

Opportunity Cost of Hot Dogs

 

Tyson:
	Hot Dogs Made
÷	Bags of Popcorn Made
=
	For every 1 hot dog Tyson makes, he sacrifices						bags of popcorn.

 

 

Ella:
	Hot Dogs Made
÷	Bags of Popcorn Made
=
	For every 1 hot dog Ella makes, she sacrifices						bags of popcorn.

 

		Opportunity Cost of Producing Hot Dogs
Tyson
Ella

 

Question	Answer (Ella or Tyson)
Who has lowest opportunity cost of producing hot dogs?

 

 

 

 

 

 

 

 

Part 2D

Determine how many bags of popcorn should be produced per hour by each worker. (Show your work).

 

Who should specialize in producing popcorn?
Who should specialize in producing hot dogs?

 

 

			Specialization
			Production of Bags of Popcorn		Production of Hot Dogs
Tyson
Ella
Total Production With Specialization
Total Without Specialization
Difference

 

 

 

 

 

Part 2E

What potential ethical issues could arise from making the decision to have both employees specialize in producing popcorn or hot dogs? Name and explain at least two issues.