Study problems answers

Here is the answer key to the practice problems. If you have any questions or corrections please email me at jjulian@iup.edu

1-C, 2-A, 3-C, 4- D, 5-A, 6-C, 7-B, 8-C, 9-B, 10-B, 11-A, 12-B, 13-C,
14-B, 15-B, 16-A, 17-B, 18-A, 19-A, 20-B, 21-A, 22-D, 23-B, 24-B,
25-D, 26-B, 27-B, 28-D, 29-C, 30-C, 31-C, 32-B, 33-C, 34-C

Watch this blogspot for more discussion in preparation for the test.

Homework help

Here's a good question from someone in class related to some homework problems. Maybe the question and answer will help you.


Student asks, " I have been working on the problem set and came across a couple questions I was hoping to clarify before finishing. For #3d, it askes 'Which party would get the bigger "peace dividend," measured by the increase in butter production'. What do you mean by that? It has me confused and I'm not sure what I'm supposed to explain."

My response:

OK, the Hawks are initially producing more guns than the Doves are, got that?

So, suppose each country decides "let's make fewer guns and enjoy more butter".

If each country gives up ONE unit of guns, both countries will gain butter. The question would be, which country would get more butter by doing this. (The butter is the "peace dividend", they can enjoy more butter since they don't have to have as many guns.)

(I'll give you the answer below)

Another question:
"Also, #1, with describing some of the tradeoffs faced by each of the following...do you want just the cons of this situation or both the good and bad that could come from it?"


You need to think about what you have to give up. That's the trade off. If a family buys a car, what kinds of things can they NOT buy (e.g., a nice vacation, they might take the car to New Jersey rather than flying the gang to Orlando to enjoy Disney World) Think of others.

(Answer: The Hawks. Now try to argue why. Use a diagram and use the principle of increasing opportunity cost.)

I am an economic girly man

On Tuesday at the Republican National Convention, Arnold said "To those critics who are so pessimistic about our economy, I say: 'Don't be economic girlie-men!"'

If seeing the realities of a less-than-stellar economy makes one a girly man then I am a girly man. So go ahead and be a manly man and believe words that have little backing. Stick to your talking points. People might believe you. True Lies.

Read this: www.fool.com/News/mft/2004/mft04090118.htm

and this: http://news.yahoo.com/news?tmpl=story&u=/usatoday/20040827/ts_usatoday/censuspovertyrosebymillion

oh, and this: http://money.cnn.com/2004/09/02/news/economy/jobless_claims/index.htm?cnn=yes

Read the news

Read the news at

http://www.cnn.com/

Analyse the news at

http://www.slate.com/

Watch the Daily Show with Jon Stewart.