Reference no: EM132837208

Case Study - Survivor Island

Question 1. Discuss the central economic problem facing this group of survivors.

Question 2. Make a list of the basic needs and wants of the survivors.

Question 3. Now put this list of needs and wants in order of importance and give reasons for prioritizing your needs. Use the following table to answer this question.

Needs and wants      Reason for priority

Question 4. Study your answer to question 3 - how car you use the concept of "opportunity cost" to determine the importance of the order in which you will have to satisfy your needs and wants? Will you change the order of importance in questions 3 after you have looked at the concept of opportunity costs?

Question 5. Do you think that the order of importance of need. Make a list of the factors of production that will be available for the group members to build a shelter.

Question 6. A shelter for the survivors is a very important need. Make a list of the factors of production that will be available for the group members to build a shelter.

Question 7. Identify and explain the three basic economic questions (What? How? and for whom?) that the group of survivors will have to answer every day.

Question 8. Draw a diagram of the circular flow of the economy on this island. Briefly explain the working of the circular flow.

Attachment:- Case.rar