Name_____________________________________________ WORKSHEET Principles of Microeconomics
Chapter 1: 10 Principles of Economics
1. Phineas and Ferb are 10 year old twins fighting over a $200 gift card they jointly won in a raffle. Thegift card is good at a store that sells MP3 players. The store sells 3 different types of MP3 players: onesfor $150, $75, and $50. The gift card can only be used once and any remaining balance will beforfeited.Each twin wants their own MP3 player and of course wants the most expensive one. Their motherintervenes and tells them they will each be allowed to get a $75 player.Is this outcome efficient? Equitable? Explain.____________________________________________________________________________________2. a. What did you do between 7pm and 8pm on Tuesday night?b. List 5 other things you could have done between 7pm and 8pm on Tuesday night.
c. If you hadn’t done what you wrote in part “a”, what activity from “b”
would you have done
?___________________________________________________________________________________3. a. Describe a time when you made a rational decision.b. Describe a time when you acted irrationally.