Name_________________________
Period______
Economics Pre-Test, or “Do you think like an Economist?”
Directions: Answer the following questions using complete sentences. Do not skip any questions. Credit will be given for effort and thinking not necessarily for the “correct” answer.
Why is cocaine so expensive, but salt so cheap?
About 30 years ago my uncle bought a calculator for about $200. It could do simple mathematical calculations and had a limited memory. Today, a similar calculator costs under $5. Why?
After high school, Emily decides to go to college for four years. Her friend Beth decides to go work as a clerk at the Gap. What were the “costs” of Emily’s decision to go to college and what were the “costs” of Beth’s decision to work at the Gap?
My friend has a job in Silicon Valley where a typical day at work involves a few hours of meetings, talking on the phone and sending/ answering e-mail, an occasional presentation and many hours of working on the computer. Compare this with a farm worker in California’s central valley who harvests fruits & vegetables during his/ her typical workday. Who “produces” more? Who works harder? Why does my friend get paid about 10 times more? Is that fair? Why or why not?
You may have heard the phrase, “There is no such thing as a free lunch.” Whet exactly does that mean?
In economic terms, can war ever be “good?” Explain.
Imagine your Aunt Bertha gives you $1000 in cash for graduation, but she says you can’t spend it until after you finish college. What happens to it if you put it in the bank? What else could you do with the money?
If your parents/ guardians made $8.25 and hour in 1970, is that the same as you making $8.25 an hour flipping burgers at Burger King Today? Why/ why not?
Can education be considered an “investment” in an economic sense? Explain.
Why doesn’t McDonald’s charge $50 for a Big Mac? Why doesn’t EBMUD charge $1000 per month for water?