Problem 1
Explain the differences between the terms in each of these pairs: a. statistics economic model b. macroeconomics microeconomics c. positive economics normative economics
Problem 1
Explain the relationship between the terms in each of these pairs: a. incentive utility b. trade-off opportunity cost c. marginal cost marginal benefit
Problem 1
Explain how each of these terms is illustrated by the production possibilities curve. a. underutilization b. efficiency
Problem 2
On what assumptions is the PPC based? Explain how these conditions do not correspond to the real world.
Problem 2
What is the difference between needs and wants? Explain how a need may also be a want.
Problem 2
Why do economists often choose to present statistics in charts, tables, or graphs?
Problem 2
Two action movies are playing at your movie-theater complex. You have a half- price coupon for one. However, you choose to see the other. How might this still be an example of economizing?
Problem 3
Think of some of the options you have for spending time after school-sports practice, hobby clubs, work, or extra study, for example. Which option would you choose? What is the opportunity cost of your choice?
Problem 3
What economic data does a PPC bring together?
Problem 3
How does scarcity affect consumers? Producers?
