CHAPTER ONE ECONOMICS AND ECONOMIC REASONING PROBLEM SET 1. Briefly point out the faulty reasoning in each of the following situations: (LO2) a. You win a free, nontransferable ticket to a Taylor Swift concert. Since the ticket is free and it will therefore cost you nothing to go, you decide to go to the concert. b. You paid nonrefundable tuition of $3,000 to take a 15-week course. Therefore, the opportunity cost of attending class each week is $3,000 divided by 15, or $200. c. You like to avoid costs; every decision involves opportunity cost. So you don't make decisions. d. You have purchased 5 premium apples for $1.99 a pound, but when you get home, you discover they are mushy. Since you paid top dollar for these apples, you decide you have to eat them. 2. Classify the following Wall Street Journal articles as involving macroeconomic or microeconomic issues based on their titles: (LO1) a. "Jerome Powell Affirms Fed's Patient Approach to Future Interest Rate Charges" macro b. "How Drugs for Rare Diseases Became Lifeline for Companies" MICRO c. "Monetary Tightening Damps Brazil Investment" macRo d. "Debut of Chicken Little Gives Disney Something to Crow Over" icRo 2020 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part