Economics and Book Online Essay

1. Liza needs to sully a text declare for the next economics class. The price at the college bookstore is $65. one(a) online site offers it for $55 and another site, for $57. All prices include sales tax. The nonessential t able indicates the typical transit and handling charges for the textbook ordered online.a. What is the fortune exist of purchasing online instead of at the bookstore? Note that if you buy the book online, you must wait to suit it.The opportunity cost of buy online instead of at the bookstore would be whatever is you would need to entertain up to get the book online. This would mean(a) that the opportunity cost of get online would include the sum of the transit charge and the time that you would spend time lag on the book to arrive. If you buy the book at the store, you would be able to get the book the same day but it would also mean losing emerge on the possible savings that you would get if you bought it online.b. Show the germane(predicate) cho ices for this student. What determines which of these options the student entrust choose?So if Liza buys from the bookstore it would cost $65. If Liza decides to buy online from the first store the cost would vary. The price of the book from the first online store would be $55. Next day air to get the book in one business day would cost an extra $13.98. ($55 + $13.98 = $68.98). Her next choice would be to affair 2 long time shipping which is an $8.98 charge also from the first site. ($55 + $8.98 = $63.98). Next she could use 3-7 day shipping for a $3.99 shipping charge. ($55 + $3.99 = $58.99)The next online site charged $57 for the book. If she chose 1 day shipping it would cost ($57 + $13.98 = $70.98), 2 day shipping would cost ($57 + $8.98 =$65.98) and 3-7 day shipping would cost ($57 + $3.99 = $60.99). So from looking at the study here(predicate) it would be unlikely that Liza would purchase from the 2nd online store and I dont see her buying it from the first online store and victimisation next day shipping because that would cost her $68.98. It is hard to tell from the information whether or not Liza has enough time between instanter and her next class to wait the 2 or 3-7 for shipping. It would be face-saving to know if her class was tomorrow or next week and depending on what time of day she orders the book online or if it is over a weekend or close to a holiday that would also push the shipping date back approximately. Also where she lives in the U.S. sometimes plays a agent in shipping times.2. In August 2007, a sharp downswing in the U.S. housing market reduced the income of many who worked in the position bend industry. A Wall Street Journal news obligate reported that Wal-Marts wire-transfer business was likely to suffer because many formula workers are Hispanics who regularly send part of their wages back to relatives in their home countries via Wal-Mart. With this information, use one of the principles of economy-wide interaction t o trace a range of links that explains how reduced spending for U.S. home purchases is likely to affect the cognitive operation of the Mexican economy.I think in this case this may finalise under Principle 10 One persons spending is another persons income according to our textbook. If you start from the top of the orbit that may include lenders and financial institutions that are funding a construction or accredited estate project or they are determination that they are taking a high risk because more large number are defaulting on the mortgage loans. If that takes place then this hurts the lenders because there bequeath be less potential home buyers because of people losing jobs and noteing it harder to find work so in return that will render the real estate market crash. This chain of events will make it harder for the contractors to nurse some of their workers and be forced to fire people so that will make it harder for the Mexican community to send money back to thei r families which is why it will also hurt Wal-Marts wire-transfer business.3. During the Great Depression, food was left to ravage in the fields or fields that had once been actively polite were left fallow. Use one of the principles of economy-wide interaction to explain how this could have occurred. For this I would say that Principle 11 Overall spending sometimes gets out of line with the economys productive capacity, would fit this situation. Because there was not as much spending going on during the great belief that also would mean that there would be less people buying products such as foods from the fields. The food that was already produced or grown would be left to rot if the sellers could not find any buyers. As it says in our textbook, in the 1930s, spending fell far short of what was needed to keep American workers employed, and the result was a severe economic slump. In fact, shortfalls in spending are responsible for most, though not all, recessions.