iClicker Question of the Week #coronavirus

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For all of you who #teachecon, our authors share an #iclickerqoftheweek with timely topics for Econ101. Eric Chiang, (@ProfessorChiang) author of Economics: Principles for A Changing World, Fifth Edition, starts us off with three questions on the #coronavirus 

*The correct answer is noted with an asterisk. 

Topic Coronavirus Epidemic

Economic Concept: Production Possibilities Frontier (Chapter 2 in Economics: Principles for A Changing World)

Question: To contain the spread of the coronavirus from its epicenter in Wuhan, authorities have temporarily closed all public transportation including airports, train and bus stations. This has caused some factories to halt production as workers stay home. How does this affect Wuhan’s PPF?

a) Wuhan’s production would temporarily move to a point farther to the right of its PPF

*b) Wuhan’s production would temporarily move to a point farther inside of its PP

c) Wuhan’s PPF would shift to the right

d) Wuhan’s production would stay on its PPF but at a different point

Topic: Coronavirus Epidemic

Economic Concept: Supply and Demand (Chapter 3 Economics: Principles for A Changing World)

Question: To accommodate the increase in demand for health care services in Wuhan due to the coronavirus epidemic, the government is building a temporary hospital with 1,000 beds. If the increase in supply is smaller than the increase in demand, what happens to the market price for health care, all else equal?

*a) market price and quantity both increase

b) market price and quantity both decrease

c) market price increases but market price decreases

d) market price decreases but market price increases

Topic: Coronavirus Epidemic

Economic Concept: Supply and Demand (Chapter 3 Economics: Principles for A Changing World)

Question: To contain the spread of the coronavirus from its epicenter in Wuhan, authorities have temporarily closed all public transportation including airports, train and bus stations during the Lunar New Year holiday. What is the likely impact of this policy on auto travel, all else equal?

a) A decrease in demand in auto travel, a complement to public transportation

b) A decrease in demand in auto travel, a substitute to public transportation

c) An increase in demand in auto travel, a complement to public transportation

*d) An increase in demand in auto travel, a substitute to public transportation