Unit VII Final Project

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Unit I Assignment Worksheet

Charles Bunn

James Yoo

Principles of Microeconomics (BBA 2501)

February 19, 2021

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You will complete this assignment in two parts.

 Part 1 requires a short written response.  Part 2 involves completing a worksheet on which you will show your work and provide

your answers to the questions listed below.

Examples of how to complete these questions can be found in the Unit I Introduction and

associated videos.

All components of Parts 1 and 2 of the assignment will be completed using this worksheet, on

which you will show your work and provide your answers to the questions listed. Once you have

completed all components of the assignment, save and upload this worksheet into Blackboard.

Name your file “Unit I Assignment Worksheet--YourName” (replace “YourName” with your own

name). Make sure you include your name and class section at the top of this worksheet.

Part 1 Tyson and Ella work at the Ruby Red Movie Theater in town. After work, they decide to watch a

movie. After purchasing their tickets, they stop by the concession stand and purchase popcorn,

drinks, and candy. Use the circular flow diagram to describe the purchases that Tyson and Ella

made and the services and goods that were provided to them.

Your response must be at least 75 words, which you can provide in the space below. Once you

have completed Part 1, please complete Parts 2A–2E, which begin on the next page.

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Tyson and Ella act like the customers; in this case, the Households purchasing the

commodities from the Firms manufacturing the products, i.e., Candy, Drinks and Popcorn. By

definition, only the two are the economy players, with their intermediaries being the market, either

the resource or product types. The product market contains the manufactured products; their

location can be anywhere along the distribution line between the households and firms. The

resource market contains the factors needed for productions, i.e., Land, Capital and Labor,

essential for households and firms.

market of goods and services

popcorn,drinks and candy

film

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Part 2

Note: An example of how to make these calculations is provided in the Unit I videos Opportunity

Cost and Law of Comparative Advantage.

Background Information

As mentioned in Part 1 of this assignment, Tyson and Ella work at Ruby Red Movie Theater. Tyson

can produce 100 bags of popcorn or 50 hot dogs in one hour. His coworker, Ella, can produce 100

bags of popcorn or 30 hot dogs in an hour. Answer the following five questions based on this

information. Remember to show your work.

Production By

Hourly Production Tyson Ella

Bags of Popcorn Or

100 100

Hot Dogs 50 30

Part 2A

If Tyson and Ella attempted to produce both popcorn and hot dogs, how many bags of popcorn

and hot dogs could each produce individually per hour? What would be the total number of bags

of popcorn and hot dogs produced per hour by the two workers combined? (Show your work

below.)

Each Trying to Produce Both

Production of

Popcorn Production of Hot Dogs

Tyson 100 50 Ella + 100 + 30 200 80

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Part 2B

Calculate the opportunity cost of producing bags of popcorn for each worker. (Show your work.)

Opportunity Cost of Popcorn

Tyson: Hot Dogs Made 50

÷ Bags of Popcorn Made 100 = 50/100 0.5

For every 1 bag of popcorn Tyson makes, he sacrifices 0.5 hot dogs.

Ella: Hot Dogs Made 30

÷ Bags of Popcorn Made 100 = 30/100 0.3

For every 1 bag of popcorn Ella makes, she sacrifices 0.3 hot dogs.

Opportunity Cost of Producing Popcorn

Tyson 0.5

Ella 0.3

Question Answer

(Tyson or Ella)

Who has lowest opportunity cost of producing popcorn? Ella

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Part 2C

Calculate the opportunity cost of producing hot dogs for each worker. (Show your work.)

Opportunity Cost of Hot Dogs

Tyson: Hot Dogs Made 50

÷ Bags of Popcorn Made 100 = 100/50 2

For every 1 hot dog Tyson makes, he sacrifices 2 bags of popcorn.

Ella: Hot Dogs Made 30

÷ Bags of Popcorn Made 100 = 100/30  3.3

For every 1 hot dog Ella makes, she sacrifices 3.3 bags of popcorn.

Opportunity Cost of Producing Hot Dogs

Tyson 2

Ella 3.3

Question Answer

(Ella or Tyson)

Who has lowest opportunity cost of producing hot dogs? Tyson

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Part 2D

Determine how many bags of popcorn should be produced per hour by each worker. (Show your

work).

Who should specialize in producing popcorn? Ella

Who should specialize in producing hot dogs? Tyson

Specialization

Production of Bags

of Popcorn Production of

Hot Dogs

Tyson 100 50

Ella 100 30

Total Production With Specialization 103 52

Total Without Specialization 100 50

Difference 3 2

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Part 2E

What potential ethical issues could arise from making the decision to have both employees

specialize in producing popcorn or hot dogs? Name and explain at least two issues.

1. Autonomy- sovereignty to act with objective morality among professionals.

2. Disclosure- information sharing that hinders international cooperation among all

stakeholders.

3. Beneficence- humanity, love, altruism in undertaking projects.

4. Nonmaleficence- ability to identify, control and mitigate destruction and harm.

5. Justice- quality of being impartial, fair, righteous in conducting activities.

6. Utilitarianism. - ethical theories framework that maximizes well-being and happiness.