Reference no: EM13352276

Q. 1. Briefly discuss the impact of rational self-interest on each of the following decisions:

a. Whether to attend college full time or enter the workforce full time

b. Whether to buy a new textbook or a used one

2- To which category of resources does each of the following belong? Is it land, labor, or capital?

a. A taxicab

b. Computer software

c. One hour of legal counsel

d. A parking lot

3-Determine whether each of the following is primarily a microeconomic or a macroeconomic issue:

a. What price to charge for an automobile?

b. Measuring the impact of tax policies on total consumer spendingin economy

c. A household's decisions about what to buy

d. A worker's decision regarding how much to work each week

4- You can either spend Spring Break working at home for $80 per day for five days or go to Florida for the week. If you stay home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food and miscellaneous expenses will total about $700. What's your opportunity cost of going to Florida? (Hint: Answers may vary)

5. Determine whether each of the following would cause the economy's PPF to shift inward, outward, or not at all:
a. An increase in average length of annual vacations?
b. An increase in immigration

6. Under what conditions would an economy be operating inside its PPF? On its PPF? Outside its PPF?

7. Do you think learning economics will play an important role in achieving your goalsin near future? Briefly discuss.

8. Do you face the problem of scarcity in your life? Can you think of any example?

9. What are the major functions of the government?

10. What are the advantages and disadvantages of forming a corporation?