ECONOMICS CONCEPTS IN EVERYDAY LIFE

Use Economic Concepts to explain the following questions.

QUESTION 1 Why do the keypad buttons on drive-up machines have Braille dots??

Why do the keypad buttons on drive-up machines have Braille dots??

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.

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.

QUESTION 2 Why does a light come on when you open the refrigerator but not when you open the freezer?

Why does a light come on when you open the refrigerator but not when you open the freezer?

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.

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.

Why are gas tanks on the driver’s side of some cars but on the passenger’s side of others? Question 4

Answer: Gas lines would be longer.

Answer:

Gas lines would be longer.

Why do many fast food restaurants promise a free meal if you are not given a receipt at the time? purchase? Question 5

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

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

QUESTION 6 Why is milk sold in rectangular containers, while soft drinks are sold in round ones?

Why is milk sold in rectangular containers, while soft drinks are sold in round ones?

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.

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.

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?

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?

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.

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.

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

QUESTION 9 Why are child safety seats required in cars but not in airplanes?

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!

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!

QUESTION 10 Why does an accident in the northbound lanes of traffic cause a traffic jam in the southbound lanes?

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!

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!

QUESTION 11 Why do airlines charge much more for tickets purchased at the last minute while Broadway theaters follow the opposite practice?

Why do airlines charge much more for tickets purchased at the last minute while Broadway theaters follow the opposite practice?

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.

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.

QUESTION 11 Why do female models earn so much more than male models?

Why do female models earn so much more than male models?

Supermodel Giselle made between 15 to 30 million dollars last year. No male model made more than ONE million!

Supermodel Giselle made between 15 to 30 million dollars last year. No male model made more than ONE million!

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!

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!