Macroeconomics, 9/e

Campbell R. McConnell, University of Nebraska, Lincoln
Stanley L. Brue, Pacific Lutheran University
Thomas P. Barbiero, Ryerson University

The Nature and Method of Economics

Internet Application Questions


1		Go to www.ttc.ca and answer the following questions: During the summer of 2001, the Toronto Transit Commission began an advertising campaign stating its funding needs to maintain service at current levels over the next 10 years. Observe the posters and read the information given in this website about the TTC's funding drive. How much money does the Toronto Transit Commission need over the next 10 years just to maintain its services? What will this money be used for? Why is this issue a good example of the basic economic concepts of scarcity, choice and opportunity cost? Explain.



2		Go to http://cgi.canoe.ca/MoneyColumnsWhitehead/dec18_whitehead.html How do economists use the concepts of marginal cost and marginal benefit (cost-benefit analysis) to make economic decisions?



3		How is the NEIGE study different from most of the other types of cost-benefit analyses that economists regularly make?



4		According to the NEIGE study, what is the marginal cost of snow? Can you think of some marginal benefits of snow?



5		What does the NEIGE study conclude about the size of the marginal benefits of snow as compared to its marginal cost?

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