Homework! Homework! Homework!

There will, in all probability, be homework this evening, February 5.  We are close to wrapping up our Econ Booklet, and part of tonight's assignment is to complete pages 34 and 35 in the booklet.  I told the kids they DID NOT have to write their own scenarios on page 35!  I also assigned an assignment entitled "New Shoes" which consists of four short paragraphs, five (5) mutliple choice questions, and three (3) incredibly short "short answer" questions.  This work is due Wednesday, February 6, 2013.

Below is the "New Shoes" assignment.

New Shoes

     Nina needs a new pair of sports shoes.  She wants a special brand name shoe.  Nina and her mom go to the store that sells sports shoes.  Nina sees just the pair of shoes she wants in the window.  Mom asks the clerk the dreaded question, “How much does this pair of shoes cost?”  The clerk replies, “$99 plus tax.”  Running shoes that cost over $100 is outrageous to Nina’s mom.

     Nina and her mom shop around.  They go to a department store in the mall.  They find a good pair of running shoes that are only $50. They ask to try on a pair in size 8, but the clerk says they have sold every pair except one pair in size 6.

     The next stop is a discount shoe outlet store.  There are no sales clerks.  Nina looks for a pair she likes.  She tries them on, and they fit well.  This pair of shoes seems to be of equal quality to the first pair of shoes she saw in the sports shoe store.  This pair of shoes is $35.

     Nina’s mom is willing to pay $35 for a pair of shoes, but she will not pay $100 for a pair of shoes.  If Nina gets the expensive shoes, she will have to take money out of her savings, which she is saving to redecorate her room.

1.       How is scarcity illustrated in this scenario?

a.        The sports store wants to sell the higher priced shoes.

b.       The department store did not buy enough of the mid-range priced shoes.

c.        The store ordered more of the big brand name shoes.

d.       There are not enough inexpensive shoes.

2.      What is the opportunity cost of choosing the $100 shoes?

1. Nina will have to pay $3.84 more in sales taxes
2. Nina will not have the money to redecorate her room as soon as she wanted.
3. Nina will have to get more baby-sitting jobs
4. Nina will have to borrow money from the bank.

3.      Clerks in the store are providing

1. imported goods
2. income
3. a service
4. a capital resource

4.      Why do people make economic choices?

1. Businesses entice consumers with advertising
2. People are likely to do impulse buying
3. They want shoes
4. Wants are greater than needs

5.      Nina has to compare quality, fit, price, and financial resources when she makes her final decision.  This is:

1. benefit/cost analysis
2. being a consumer
3. money management
4. substitutes

New Shoes

Short Answer

1. Nina decides to buy the expensive, name brand running shoes for $100.  What is her opportunity cost?

2. Nina decides to buy the shoes for $35 at the discount shoe outlet.  What is her opportunity cost?

3. Nina decides to wait until the shoes for $50 are available at the shoe store in the mall.  It will take two weeks for the shoes to arrive at the store.  What is her opportunity cost?