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Economics In Everyday LIfe
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Economics In Everyday LIfe

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Transcript

  • 1. ECONOMICS CONCEPTS IN EVERYDAY LIFE
  • 2. Use Economic Concepts to explain the following questions.
  • 3. QUESTION 1
    • Why do the keypad buttons on drive-up machines have Braille dots??
  • 4. ANSWER
    • ATM producers have to make keypads with Braille dots for their walk-up machines anyway, and so it is cheaper to make all machines the same way
    • If the Braille dots caused trouble for sighted users, the extra expense might be justified. But they do not.
  • 5. QUESTION 2
    • Why does a light come on when you open the refrigerator but not when you open the freezer?
  • 6. POSSIBLE ANSWERS
    • Most people open the fridge more than the freezer, thus placing a greater benefit on opening the refrigerator.
    • People Benefit More from having a light in the fridge than in the freezer.
  • 7. Why are gas tanks on the driver’s side of some cars but on the passenger’s side of others? Question 4
  • 8.  
  • 9.
    • Answer:
    • Gas lines would be longer.
  • 10. Why do many fast food restaurants promise a free meal if you are not given a receipt at the time? purchase? Question 5
  • 11. ANSWER
    • To make sure cashiers do not steal. Sales are monitored when rung up.
    • It is cheaper to give a free meal than to hire supervisors to monitor a cashier all day
  • 12. QUESTION 6
    • Why is milk sold in rectangular containers, while soft drinks are sold in round ones?
  • 13.  
  • 14. ANSWER
    • Rectangular containers use shelf space more economically.
    • Soft drinks are consumed directly by the container, the extra cost is justified because it is easier to hold.
  • 15. QUESTION 7
    • Gold sells for the same price in New York and London.
    • Why does an ounce of gold not sell for $800 in NY and $900 in London?
  • 16. QUESTION 8
    • Cars in Europe have much smaller engines, usually no larger than 4 cylinders.
    • The BMW 5 series in Europe is usually 1.6 liters and 4 cyllinders, while in the US the smallest option availabe is a 3 liter, 6 cylinder engine.
  • 17. ANSWER Gas is much more expensive in Europe due to higher gas taxes. Europe’s gas is up to 2X as expensive as the US Toyota’s new car
  • 18.  
  • 19. QUESTION 9 Why are child safety seats required in cars but not in airplanes?
  • 20. ANSWER
    • An extra seat may cost at least $1000 or more on a flight
    • As the father of three, I hate to admit it, but those extra seats would be very expensive!
    • Hold you kids tight on the plane, and hope for the best!
  • 21. QUESTION 10 Why does an accident in the northbound lanes of traffic cause a traffic jam in the southbound lanes?
  • 22. ANSWER
    • Here is a simple cost-benefit calculation  The cost of slowing down to look close at the accident scene is that they will be delayed by several seconds.
    • The Benefit, by doing so, a driver will satisfy their curiosity. The benefit usually exceeds the cost for most drivers.
    • However, if everyone slows down, there could be a delay as long as 1 HOUR per driver!
  • 23. QUESTION 11
    • Why do airlines charge much more for tickets purchased at the last minute while Broadway theaters follow the opposite practice?
  • 24. ANSWER
    • To buy at TKTS, you must wait about an hour or more.
    • Tickets are not often available for the most popular shows.
    • Many high-income people are unlikely to stand in line for an hour to save a few bucks.
  • 25. QUESTION 11
    • Why do female models earn so much more than male models?
  • 26.
    • Supermodel Giselle made between 15 to 30 million dollars last year. No male model made more than ONE million!
  • 27. ANSWER
    • Women spend 2X as much on clothes as men.
    • Women widely read fashion magazines. Could you even name one Male fashion magazine?
    • Women who can capture the attention of a reader amongst the 1000’s of pictures are worth their weight in gold.
    • So it is easy to see why manufactures might be willing to bid a lot more for a model who stands out even slightly from the field.
    • DID YOU KNOW: The September, 2007 issue of Vouge has 727 pages of Ads!